Law Offices of Howard G. Smith announces that it is investigating potential claims on behalf of investors of Prospect Capital Corporation (“Prospect Capital” or the “Company”) (NASDAQ:PSEC). The investigation concerns possible violations of federal securities laws and focuses on the Company’s business and financial performance.

Prospect Capital is a business development company that specializes in mezzanine finance, buyouts, recapitalizations, turnaround, growth capital, subordinated debt tranches of collateralized loan obligations, cash flow term loans, and bridge transactions. The investigation is related to the Company’s May 6, 2014, disclosure that the Securities and Exchange Commission has questioned whether certain of Prospect Capital’s wholly owned companies are investment companies for accounting purposes and should be consolidated to comply with Generally Accepted Accounting Principles (“GAAP”). According to the Company, Prospect Capital may be required to restate prior financial statements “with certain wholly-owned companies consolidated for financial statement purposes but not for tax purposes,” and potentially result in a decrease in the Company’s “historical net investment income by the amount of interest and structuring income paid by such wholly-owned companies in excess of the amount of income that can be reported as dividend income based on taxable earnings and profits.”

If you purchased Prospect Capital securities, if you have information or would like to learn more about these claims, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at 215-638-4847, Toll-Free at 888-638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.