PROSPECT CAPITAL CORPORATION NASDAQ: PSEC MIDDLE MARKET FINANCE AND PRIVATE EQUITY

PROSPECT CAPITAL CORPORATION NASDAQ: PSEC MIDDLE MARKET FINANCE AND PRIVATE EQUITY 0

FORWARD-LOOKING STATEMENTS AND DISCLAIMERS Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events or performances are forwardlooking statements within the meaning of the federal securities laws. Forward-looking statements predict or describe our future operations, business plans, business and investment strategies and portfolio management and the performance of our investments and our investment management business. Our actual results or actions may differ materially from those expressed in any forward-looking statements made by us. Forward-looking statements involve a number of risks of uncertainties including, but not limited to, the risks described under headings such as Risk Factors in our SEC filings. All forward-looking statements are qualified by those risk factors. All statements made by us in this presentation are further qualified in all respects by the information disclosed in our SEC filings. We disclaim any obligation to update our forward looking statements unless required by law. Certain information discussed in this presentation (including information relating to portfolio companies) was derived from third-party sources and has not been independently verified and, accordingly, Prospect Capital Corporation makes no representation or warranty in respect of this information. The following slides contain summaries of certain financial and statistical information about Prospect Capital Corporation. The information contained in this presentation is summary information that is intended to be considered in the context of our SEC filings and other public announcements that we may make, by press release or otherwise, from time to time. We undertake no duty or obligation to publicly update or revise the information contained in this presentation. In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. You should not view the past performance of Prospect Capital Corporation, or information about the market, as indicative of Prospect Capital Corporation s future results. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of Prospect Capital Corporation. 1

WHY PROSPECT? Prospect Capital is one of the largest multi-line Business Development Companies (BDCs), providing debt financing to private middle-market companies and investing in other credit-related strategies SIGNIFICANT SCALE BROAD ORIGINATION MIX PROVEN INVESTMENT PHILOSOPHY SOLID FINANCIAL FOUNDATION ATTRACTIVE VALUATION Founded in 2004, PSEC is one of the largest BDCs with ~$6.3 billion in capital under management (1) Scale allows us to target larger, more credit-worthy middle-market companies with one-stop financing solutions One of the largest teams in the industry focused on middle market lending (90+ professionals) Multiple yield-oriented origination strategies with upside potential Differentiated strategies drive high net yields Superior and proprietary deal flow channels Intensive screening process (<5% book-to-look ratio) with a majority focus on senior and secured lending Diverse portfolio of 135 investments across 38 industries and low non-accruals Independent third-party portfolio valuations Investment grade ratings from S&P, Kroll, and Egan-Jones Laddered liability structure with long-term matched-book funding Approximately 77% of assets unencumbered and prudent leverage Monthly dividend of $0.06/share, current annualized dividend yield ~10.0% (2) Potential for capital appreciation based on discount to NAV Established historical track record and strong insider ownership Source: Company filings, investor presentations and management. (1) Total assets as of 6/30/2018 plus estimated debt capacity. (2) Pricing data as of 8/27/2018. 2

SIGNIFICANT SCALE PROVIDES COMPETITIVE ADVANTAGE PSEC is one of the largest publicly traded BDCs with a market capitalization of ~$2.6 billion (1) Capital preservation strategy resulted in lower origination activity Lower originations and spread compression led to lower net investment income in FY 2017 and FY 2018 NET INVESTMENT INCOME (FY as of 6/30, $ in millions) TOTAL EQUITY (FY as of 6/30, $ in millions) $400 $350 $300 $325 $357 $363 $371 $306 $287 $4,000 $3,500 $3,000 $2,656 $3,618 $3,703 $3,436 (2) $3,355 $3,407 $250 $2,500 $200 $2,000 $150 $1,500 $100 $1,000 $50 $500 $0 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 $0 FY2013 FY2014 FY2015 FY2016 FY 2017 FY2018 Source: Company filings (1) Pricing data as of 8/27/2018. (2) Company repurchased 4.7 million shares for $34.1 million in FY2016. 3

EXPERIENCED AND BROAD TEAM With over 90 professionals, the Prospect team is one of the largest focused on the middle market SENIOR EXECUTIVES John Barry Chairman and CEO Co-founder of Prospect Capital Corporation Over 40 years of experience, including Merrill Lynch, Rothschild and Davis Polk JD Harvard, AB Princeton Grier Eliasek President and COO Co-founder of Prospect Capital Corporation Over 22 years of experience; previously a consultant at Bain & Company MBA Harvard, BS Chem. Eng. Univ. of Virginia Daria Becker CCO and Head of Admin. Joined Prospect Capital Management in 1998 Over 32 years of experience, including Lexington, Citigroup and a family office BA Wellesley College INVESTMENT TEAM BUSINESS DEVELOPMENT & IR ACCOUNTING & TAX LEGAL ADMINISTRATION Investment Professionals 36 Business Development & Investor Relations Professionals 9 Accounting and Tax Professionals 20 Legal Professionals 13 Administration Professionals 12 90+ person organization helps drive originations through superior scale and market coverage Source: Company filings, management. As of 7/3/2018. 4

FLEXIBLE ORIGINATION MIX 9-12% Target IRRs 33.9% of Portfolio PRIVATE EQUITY SPONSOR FINANCE (Non-Control) Senior secured debt with significant junior / equity capital Stronger management / larger businesses Repeat business 11-16% Target IRRs 1.6% of Portfolio DIRECT NON-SPONSOR LENDING (Non-Control) Senior secured debt with lower leverage Higher yields from fewer lender competitors Proprietary call center ONE-STOP YIELD BUYOUTS OPERATINGCOS (Control) 14-25% Target IRRs 5.8% of Portfolio One stop advantage (PSEC provides term debt) Current yield plus equity upside Management control ONE-STOP YIELD BUYOUTS FINANCECOS (Control) STRUCTURED CREDIT (Hybrid) REAL ESTATE (Control) 15-25% Target IRRs 9.7% of Portfolio Consumer installment lending and auto finance Tax-efficient structure Strategic buyouts (Patriot Capital) 13-17% Target IRRs 16.8% of Portfolio Diversified credit exposure, with default rate well below market Large, more liquid credits and attractively priced AAA funding Call control strategy 14-18% Target IRRs 14.2% of Portfolio Multi-family residential, student housing and self storage focus on fully developed properties Long-term funding from GSEs Diversified tenants ONLINE LENDING (Non-Control) AIRCRAFT LEASING (Control) SYNDICATED DEBT (Non-Control) 10-12% Target IRRs 4.2% of Portfolio Online consumer loans and small business loans 1-5 year term Relationships with multiple platforms 10-18% Target IRRs 1.4% of Portfolio Current-yielding equity in aircraft-ownership companies and aircraft securitizations Diversity by aircraft type, geography, and operator 9-11% Target IRRs 12.4% of Portfolio Senior secured debt of larger borrowers in liquid market Active during market dislocation Less active during bull markets Multiple origination channels allow PSEC to be selective in funding new investment opportunities Source: Company filings, management. PSEC portfolio data as of 6/30/2018. 5

SUPERIOR DEAL FLOW AND DISCIPLINED EXECUTION 3,000+ opportunities sourced annually with <5% of initially screened investments advancing to closing SYSTEMATIC CALLING EFFORT COLD-CALLING EFFORT MANAGEMENT RELATIONSHIPS CONTACT DATABASE IN-BOUND OPPORTUNITIES PE sponsors ~200 Tier 1 relationships Other intermediaries ~4,000 total Syndication/Club relationships Small-to-mid cap companies with identified financing needs Dedicated in-house call center Proprietary deal flow From 175+ past and present portfolio companies Add-on investments, new investments, assistance with due diligence and postclosing value add 50,000+ contacts built over two decades Receive all transaction announcements, resulting in both inbound opportunities and top-of-mind awareness From scale, longevity, and visibility of Prospect ~$6.3 billion of capital under management Disciplined underwriting and execution helps to keep credit losses low ORIGINATE SCREEN 3,000+/year STRUCTURE 200-300/year CLOSE 30-50/year MONITOR 135 portfolio investments EXITS Over 150 since inception Source: Company filings, management. 6

CONSERVATIVE APPROACH DRIVES CAPITAL PRESERVATION PSEC generally invests in middle market companies with $5 - $150 million of annual EBITDA Weighted Average Portfolio Company EBITDA and Net Leverage (1) $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $0.0 $1,200 $1,000 $800 $600 $400 $200 $0 Weighted Average EBITDA ($ millions) $49.4 $48.3 $49.2 $60.5 $62.6 $55.4 6.00x 5.00x 4.15x 4.19x 4.32x 4.44x 4.65x 4.60x 4.00x 3.00x 2.00x 1.00x 0.00x 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 Quarterly Portfolio Activity $1,042.3 $738.7 $449.6 $429.9 $352.0 $339.8 $362.3 $302.3 $310.9 $223.2 $222.2 $118.1 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 7.00x Weighted Average Net Leverage Source: Company filings, management. (1) Includes debt through Prospect s investment and excludes 3 rd party debt. Investments ($ millions) Repayments/exits ($ millions) 7

PORTFOLIO OVERVIEW: $5.8 BILLION IN ASSETS ACROSS 135 INVESTMENTS 100% 89.7% 80% 60% 40% 20% 10.3% 0% Interest Bearing Assets 98.4% Fixed Rate Floating Rate 1.6% Liabilities 2017, 9.6% 2016, 6.1% 2015, 7.0% 2018, 10.3% 2014, 26.0% Portfolio Vintage Other, 1.0% 2012, 10.1% 2013, 29.9% Non-accruals (FV)/Total Assets 2.50% 2.50% 2.10% 1.20% 1.30% Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Portfolio Yield 10.8% 10.4% 10.3% 10.5% 9.9% Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Top 10 Investments Portfolio Company % Assets Type National Property REIT Corp. (2) 13.9% Real Estate First Tower Finance Company LLC 7.6% Buyout Broder Bros., Co. 4.7% 1st Lien InterDent, Inc. 3.4% 1st Lien Pacific World Corporation 2.8% 1st Lien Centerfield Media Holding Company 2.3% 1st Lien CP Energy Services Inc. 2.1% Buyout PGX Holdings, Inc. 2.0% 2nd Lien Capstone Logistics Acquisition, Inc. 1.7% 2nd Lien MRP Holdco, Inc. 1.5% 1st Lien Structured Finance 16.8% Senior and Secured Lending Focus Other 0.6% Second Lien 22.0% Equity 16.6% First Lien 44.0% Source: Company filings, management. PSEC portfolio data as of 6/30/2018. (1) Annualized current yield across all investments. (2) Includes 65 separate properties; excludes approximately 4.2% in assets related to online lending. 8

WELL DIVERSIFIED PORTFOLIO INVESTED IN 38 DIFFERENT INDUSTRIES PSEC s portfolio at fair value (6/30/2018) Other 16.4% Structured Finance 16.8% Media 2.4% Diversified Consumer Services 2.8% Personal Products 2.9% Equity Real Estate Investment Trusts (REITs) 14.2% Energy Equipment & Services 3.0% IT Services 3.2% Internet Software & Services 4.0% Online Lending 4.2% Consumer Finance 10.2% Commercial Services & Supplies 5.8% Distributors 7.0% Healthcare Providers & Services 7.1% Low energy asset concentration of 3.0%, the majority of which is secured debt Source: Company filings, management. Note: Structured Finance represents PSEC s investments in CLOs which are broadly invested across many industries. 9

RIGOROUS AND INDEPENDENT VALUATION PROCESS INDEPENDENT THIRD-PARTY VALUATION Every investment is marked quarterly and has been marked since inception at fair value by a third-party Third-party valuation agents complete a review of all assets with positive assurance (i.e., not merely a negative assurance process) SENIOR PORTFOLIO MANAGER Preliminary valuation discussions are documented and discussed with senior Prospect management AUDIT COMMITTEE Prospect s Independent Audit Committee reviews the preliminary valuations Prospect Capital Management and the third-party valuation agent respond to and supplement any information required by Prospect s Audit Committee PROSPECT S BOARD OF DIRECTORS Prospect s majority independent board of directors determines the fair value of each investment in the portfolio based on the third-party valuations and recommendations from Prospect s Audit Committee To date, the Board s final valuations have never been outside the range provided by the third-party valuation firm Source: Company filings, management. 10

DIVERSIFIED FUNDING SOURCES Access to diversified funding sources across multiple investor bases Emphasis on unsecured term debt with no financial covenants or cross defaults with revolving credit facility Prospect s corporate credit rating is BBB by Kroll, BBB by Egan-Jones, and BBB- by S&P ISSUANCE COUPON AMOUNT (millions) OUTSTANDING (millions) MATURITY SR. UNSECURED CONVERTIBLE NOTES December 2012 - $12.54 April 2014 - $12.40 April 2017 - $9.98 5.875% 4.750% 4.950% $200.0 $400.0 $225.0 $101.6 $392.0 $328.5 1/15/2019 4/15/2020 7/15/2022 SR. UNSECURED RETAIL NOTES Prospect Capital InterNotes Prospect Baby Bond (NYSE: PBB) Prospect Baby Bond (NYSE: PBY) 4.00% - 7.00% (1) 6.25% 6.25% $760.9 $160.0 $55.0 $760.9 $199.3 $55.0 July 2020 - Oct 2043 6/15/2024 6/15/2028 SR. UNSECURED INSTITUTIONAL TERM DEBT March 2013 April 2014 (2) 5.875% 5.000% $250.0 $300.0 $320.0 3/15/2023 $153.5 (2) 7/15/2019 SR. SECURED CREDIT FACILITY (3) 1ML + 2.25%(3) $885.0 (3) $37.0 3/27/2020 (3) 5.30% (4) $2,347.9 Source: Company filings, management. Data as of 6/30/2018. (1) Includes $1,445,000 of floating rate notes. (2) Company provided notice to redeem the remaining $153.5 million aggregate principal amount of the 5.0% notes due 2019. The redemption is expected to be completed on or about 9/26/2018. (3) Revolving credit facility was extended on 8/1/2018. The new facility, for which $770 million of commitments have been closed to date from 19 lenders, matures in March 2024 with a revolving period extending through March 2022 followed by a two-year amortization period. Pricing for amounts drawn under the new facility is one-month Libor plus 2.20%. (4) Weighted average interest rate excluding amortization, accretion, and undrawn facility fees. 11

Millions Millions LONG-TERM, MATCHED-BOOK FUNDING LOCKS IN ATTRACTIVE SPREADS PSEC s well-laddered funding sources match the tenor of its investments Maturity date for revolving credit facility recently extended to March 2024 (1) ; average utilization rate of less than 15% since 2011 Approximately $3.4 billion of Prospect s funding is in the form of equity, which does not mature Repurchased or redeemed $514.3 million of debt maturing between 2018-2020 in FY 2018, extending maturity ladder $4,500 $4,500 $4,000 $3,500 $3,655 $4,000 $3,500 $3,000 $3,000 $2,500 $2,500 $2,000 $1,861 $2,000 $1,500 $1,500 $1,000 $500 $0 $231 $0 $941 $255 $654 $477 $273 $118 Source: Company filings and management. As of 6/30/2018. (1) Funding maturity in 2024 includes revolving credit facility, which was extended on 8/1/2018. The new facility, for which $770 million of commitments have been closed to date from 19 lenders, matures in March 2024 with a revolving period extending through March 2022 followed by a two-year amortization period. Pricing for amounts drawn under the new facility is one-month Libor plus 2.20%. (2) Includes investments, equity capital, and debt capital maturing after 2025. $879 $492 $433$336 $304 $223 $328 2018 2019 2020 2021 2022 2023 2024 2025 No Maturity Asset Maturities Funding Maturities Cumulative Funding Maturities Cumulative Asset Maturities (1) $23 (2) $1,000 $500 $0 12

Total Assets ($M) UNENCUMBERED ASSETS PROVIDE FINANCIAL FLEXIBILITY Approximately $4.5 billion of unencumbered assets, representing ~77% of total assets $8,000 $7,000 $6,000 $6,477 $6,798 $6,277 $6,173 $5,839 $5,000 $4,000 $3,000 $2,000 $4,928 $5,249 $4,893 $4,546 $4,503 $1,000 $0 6/30/14 6/30/15 6/30/16 6/30/17 6/30/18 Unencumbered Assets Encumbered Assets High level of unencumbered assets reduces risk in the event of a market downturn Source: Company filings and management. 13

PRUDENT NET LEVERAGE CONSISTENTLY WITHIN TARGET RANGE 1.00x 0.90x Target Net Leverage of 0.70x - 0.80x 0.80x 0.70x 0.70x 0.72x 0.69x 0.76x 0.71x 0.72x 0.69x 0.66x 0.60x 0.60x 0.50x 0.40x 0.30x 0.20x 0.10x 0.00x 6/30/2016 9/30/2016 12/31/2016 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 Source: Company filings and management. 14

Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 PSEC Cumulative Distributions to Shareholders PSEC CUMULATIVE DISTRIBUTIONS TO SHAREHOLDERS Cumulative distributions of $16.80 per share totaling more than $2.6 billion since 2004 IPO ($ in millions) 2,800 2,100 1,400 700 0 Source: Company filings, management. 15

DIFFERENTIATED PERFORMANCE 16

Cumulative Returns PSEC HAS GENERATED SUPERIOR OPERATING RETURNS COMPARED WITH PUBLICLY-TRADED BDC MEDIAN OVER THE PAST 10 YEARS 120% Compounded Dividends Plus Change in NAV Per Share Publicly-Traded BDC Median PSEC 100% +99.0% 80% +82.0% 60% 40% 20% PSEC Performance Percentile: 57% 0% 3/31/08 3/31/09 3/31/10 3/31/11 3/31/12 3/31/13 3/31/14 3/31/15 3/31/16 3/31/17 3/31/18-20% Note: Dividends plus change in net asset value compounded on a quarterly basis. Investors purchase and sell shares of PSEC common stock at prevailing market prices, which may be higher or lower than NAV. Information related to past performance, while potentially helpful as an evaluative tool, is not indicative of future results. Source: PSEC analysis of Capital IQ data as of 6/14/18 for the 22 BDCs for which there is quarterly data for the ten years ended 3/31/18. 17

PSEC S BOOK EQUITY DIVIDEND YIELD HAS OUTPERFORMED PUBLICLY- TRADED BDC MEDIAN OVER EACH OF THE PAST 5 YEARS Dividend / NAV (Dividend Yield) Publicly-Traded BDC Median PSEC 12.3% 11.9% 9.3% 9.4% 9.5% 9.7% 9.7% 10.4% 8.8% 8.9% 9.4% 10.6% Twelve Months Ended 5 Year Average 3/31/14 3/31/15 3/31/16 3/31/17 3/31/18 PSEC Performance Percentile: 90% 90% 59% 69% 53% 84% Note: Dividend yield calculated as dividends per share over twelve month period divided by NAV per share at the beginning of the period. Information related to past performance, while potentially helpful as an evaluative tool, is not indicative of future results. Approximately 10% of BDCs do not focus on generation of current income, which has the effect of making it easier for PSEC's net income, net investment income and dividends to exceed the BDC median. Source: PSEC analysis of Capital IQ data as of 6/14/18 of BDCs for which there is quarterly data for each entire period (42 for the twelve months ended 3/31/14, 49 for twelve months ended 3/31/15, 50 for twelve months ended 3/31/16, 49 for twelve months ended 3/31/17, and 50 for twelve months ended 3/31/18). 18

PSEC S BOOK EQUITY NET INVESTMENT INCOME YIELD HAS OUTPERFORMED PUBLICLY-TRADED BDC MEDIAN ON AVERAGE OVER THE PAST 5 YEARS 11% Net Investment Income / NAV (NII Yield) 10% 9% 9.2% 10.0% 8% 7% 6% 5% 4% Publicly-Traded BDC Median PSEC Note: Book equity earnings yield calculated as twelve month period net investment income divided by average of beginning and ending book value of equity. Information related to past performance, while potentially helpful as an evaluative tool, is not indicative of future results. Approximately 10% of BDCs do not focus on generation of current income, which has the effect of making it easier for PSEC's net income, net investment income and dividends to exceed the BDC median. Source: PSEC analysis of Capital IQ data as of 6/14/18 for the 45 BDCs for which there is data for each quarterly period over the five years ended 3/31/18. 19

PSEC HAS POSTED AN AVERAGE ANNUAL RETURN ON NET ASSETS OF 8.8% WITH POSITIVE RETURNS IN OVER 87% OF THE FULL QUARTERLY PERIODS March June September December Annual Cumulative 2004 - - (0.9%) 1.3% 0.4% 2005 0.9% 7.3% 1.4% 2.5% 12.5% 12.9% 2006 2.8% 5.7% 2.6% 1.2% 12.9% 27.5% 2007 1.7% 1.6% 2.8% (1.1%) 5.1% 34.0% 2008 (0.3%) 6.1% 3.3% 1.5% 10.8% 48.4% 2009 3.5% (0.2%) (1.1%) (2.2%) (0.0%) 48.4% 2010 4.0% 2.2% 3.4% 3.8% 14.0% 69.2% 2011 3.7% 2.7% 3.6% 5.7% 16.5% 97.1% 2012 4.1% 2.6% 2.8% 2.2% 12.1% 120.9% 2013 1.8% 3.2% 2.9% 2.8% 11.0% 145.3% 2014 2.4% 2.0% 2.3% 2.3% 9.3% 168.2% 2015 2.2% 2.6% 0.8% (2.6%) 2.8% 175.8% 2016 2.2% 2.8% 2.4% 2.9% 10.7% 205.3% 2017 0.6% 1.5% 0.4% 3.7% 6.2% 224.3% 2018 1.5% 3.4% 5.0% 240.5% Total Return Average 2004 2018 8.8% (1) Source: Company filings. Quarterly returns based on the line item net increase in net assets resulting from operations on the income statement. To calculate a quarterly return rate, quarterly returns were divided by the sum of the net asset value from the prior quarter s filing (beginning net asset value) and half of the change in paid-in capital between the prior quarter and the then-current quarter. Annual and cumulative figures derived from compounding of quarterly returns. 1. Total return average was calculated by taking the geometric average of all quarterly returns and then annualizing this return by multiplying it by four. 20

PSEC S RETURN ON EQUITY HAS OUTPERFORMED PUBLICLY-TRADED BDC MEDIAN ON AVERAGE OVER THE PAST FIVE YEARS 10% Average Annual Return on Equity 9% 8% 7.7% 7% 7.0% 6% 5% 4% Publicly-Traded BDC Median PSEC Note: Return on equity defined as change in net assets resulting from operations per share divided by average of beginning and ending book value of common equity. Information related to past performance, while potentially helpful as an evaluative tool, is not indicative of future results. Source: PSEC analysis of Capital IQ data as of 6/14/18 for the 45 BDCs for which there is quarterly data for the five years ended 3/31/18. 21

PSEC HAS GENERATED SUPERIOR RISK-ADJUSTED OPERATING RETURNS FOR THE TRAILING FIVE YEARS ENDED 3/31/18 Returns / Volatility Trailing 5 Years 2.8x 1.4x Publicly-Traded BDC Median PSEC Note: Returns calculated as change in net asset value per share plus dividends. Volatility measured as one standard deviation in returns. Returns and volatility are measured on a quarterly basis and annualized to calculate returns / volatility ratio. Information related to past performance, while potentially helpful as an evaluative tool, is not indicative of future results. Source: PSEC analysis of Capital IQ data as of 6/14/18 for the 39 BDCs for which there is quarterly data for the five years ended 3/31/18. 22

PSEC CURRENTLY DERIVES A HIGHER PERCENTAGE OF INVESTMENT INCOME FROM RECURRING INTEREST PAYMENTS THAN THE PUBLICLY-TRADED BDC MEDIAN Interest Income / Total Investment Income Twelve Months Ended 3/31/18 100% 95% 93.5% 90% 88.7% 85% Publicly-Traded BDC Median PSEC PSEC Source: PSEC analysis of public filings available as of 6/14/18 for quarters ending from 6/30/17 to 3/31/18. Approximately 10% of the BDCs do not focus on generation of current income, which has the effect of making it easier for PSEC to exceed the BDC median. 23

SENIOR MANAGEMENT HAS MADE SIGNIFICANT INVESTMENTS IN PSEC $201.5M * Insider Filings Purchases (January 2010 to May 2018) $30.2M $16.7M $16.6M $3.0M $8.6M PSEC MAIN FSIC ARCC AINV BDC Median 5 Largest Publicly-Traded BDCs by Book Equity Source: PSEC analysis of 23 BDCs that have been active during this period. PSEC senior management has not sold any of such investments. * Excludes $126.1 million in open market purchases through the John and Daria Barry Foundation. 24

SENIOR MANAGEMENT IS A SIGNIFICANT INVESTOR IN PSEC Insider Ownership as of 6/14/18 10.0% * 2.5% Publicly-Traded BDC Median PSEC Source: PSEC analysis of Capital IQ data as of 6/14/18 for 49 BDCs. PSEC senior management has not sold any of such investments in PSEC. * Excludes 5.4% share ownership through the John and Daria Barry Foundation. 25

BDC OVERVIEW 26

PUBLICLY TRADED BDCs TOPIC INVESTMENT STRATEGY KEY CHARACTERISTICS Current-yielding credit investments primarily in middle-market companies To a lesser extent, other current-yielding investments REGULATION Regulated as a Business Development Company ( BDC ) under Investment Company Act of 1940 INVESTMENTS LIMITATIONS Generally BDCs elect to be treated as a Regulated Investment Company ( RIC ) for U.S. federal income tax purposes Generally, at least 70% of a BDC s assets must be investments in U.S. non-financial sector operating companies that either have (a) no class of securities listed on a national securities exchange (i.e., private) or (b) a market cap less than $250 million LEVERAGE LIMITATION (1) 1:1 debt-to-equity ratio (i.e. gross asset coverage must be at least 200%) DIVERSIFICATION REQUIREMENTS (2) INCOME RESTRICTIONS (2) DISTRIBUTION REQUIREMENTS (2) VALUATION At least 50% of a BDC s assets must consist of securities of an issuer in which the BDC owns less than 10% of the voting stock and in which the investment is less than 5% of the value of the BDC s assets At least 90% of BDC income must be from investment sources such as interest, dividends, and gains / losses associated with investments in equity, debt, or other securities Must distribute at least 90% of taxable income to avoid U.S. federal income tax on all taxable income Not subject to U.S. federal income tax on the income and net capital gains distributed to stockholders (provided that the above distribution requirement is met) Must mark portfolio to fair value on a quarterly basis for GAAP (3) purposes (1) Effective 3/23/2018, the Small Business Credit Availability Act permits a BDC to change its asset coverage ratio from 200% to 150%. (2) Above criteria apply to BDCs that elect RIC treatment for U.S. federal income tax purposes. (3) GAAP is defined as Generally Accepted Accounting Principles. 27

BDC PUBLIC MARKET LANDSCAPE BDCs are benefitting from the reduction of capital provided by traditional lenders Reduced bank lending driven by regulation and consolidation Post-crisis shift of institutional debt investor demand to larger credits with greater liquidity Number of Public BDCs Public BDC Group Total Assets and Market Cap $65 BN 51 52 52 51 $60 BN $55 BN Total Market Capitalization Total Assets 41 45 $50 BN $45 BN 36 $40 BN 25 25 28 $35 BN $30 BN $25 BN $20 BN $15 BN $10 BN $5 BN 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 $0 BN Source: Bloomberg. 28

HIGHER RISK-ADJUSTED RETURNS ON A CONSISTENT BASIS Middle Market Offers More Conservative Structures, Lower Defaults, and/or Higher Pricing MIDDLE MARKET LBOs 12.0x LARGE CORPORATE LBOs 12.0x 6.0x 41% 41% 37% 46% 51% 49% 45% 42% 47% 45% 50% 49% 53% 49% 6.0x 33% 36% 43% 48% 43% 40% 40% 37% 39% 42% 44% 44% 41% 5.0x 4.8x 5.9x 4.5x 3.2x 4.3x 4.5x 4.6x 4.7x 5.3x 5.3x 5.2x 5.5x 5.4x 5.7x 6.3x 5.4x 4.1x 4.9x 5.4x 5.3x 5.6x 5.9x 5.9x 5.6x 5.8x 6.0x 0.0x 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Debt Multiple Equity Capitalization 0.0x 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Debt Multiple 5.6x Equity Capitalization 2.6x CUMULATIVE DEFAULT RATE BY FACILITY SIZE (1995-2017 Closings) 5.0% MIDDLE MARKET SPREAD PREMIUM (1) 60.0% 3.68% 4.09% 4.08% 50.0% 40.0% 2.5% 30.0% 20.0% 1.26% 10.0% 0.0% Less than $100M $100M-$249M $250M-$499M $500M or greater 0.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: S&P LCD Q1 2018 High-End Middle Market Lending Review. S&P LCD defines middle-market as EBITDA of $50 million or less and large corporate as EBITDA of more than $50 million. 1. Spread premium for middle-market leveraged loans over large corporate leveraged loans. 29

APPENDIX 30

FINANCIAL HIGHLIGHTS In thousands, except per share data Statement of Operations Quarter ended June 30, 2018 Quarter ended March 31, 2018 Quarter ended December 31, 2017 Quarter ended September 30, 2017 Quarter ended June 30, 2017 Total investment income $174,031 $162,835 $162,400 $158,579 $166,702 Total operating expenses 94,551 92,389 89,208 94,847 97,024 Net investment income 79,480 70,446 73,192 63,732 69,678 Net realized and unrealized gain (loss) on investments & extinguishment of debt Net increase (decrease) in net assets resulting from operations Net increase (decrease) in net assets resulting from operations per share 34,823 (18,587) 48,535 (51,759) (18,510) $114,304 $51,859 $121,727 $11,973 $51,168 $0.31 $0.14 $0.34 $0.03 $0.14 Net investment income per share $0.22 $0.19 $0.20 $0.18 $0.19 Dividends per share $0.18 $0.18 $0.18 $0.23 $0.25 Statement of Assets and Liabilities June 30, 2018 March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 Total investments at fair value $5,727,279 $5,719,804 $5,421,132 $5,687,117 $5,838,305 Cash and cash equivalents 83,758 97,563 474,476 264,517 318,083 Total assets 5,838,820 5,851,145 5,917,513 5,979,102 6,172,789 Revolving credit facility borrowings 37,000 86,000 Total liabilities 2,431,773 2,504,749 2,569,101 2,692,111 2,817,837 Net assets $3,407,047 $3,346,396 $3,348,412 $3,286,991 $3,354,952 Net asset value per share $9.35 $9.23 $9.28 $9.12 $9.32 Source: Company filings. 31