Fair value is determined by or under the direction of our Board of Directors. Unless otherwise indicated by endnote 47 below, all of our investments are valued using significant unobservable inputs. In accordance with ASC 820, such investments are classified as Level 3 within the fair value hierarchy. See Notes 2 and 3 within the accompanying notes to consolidated financial statements for further discussion.

[2]

The following shows the composition of our investment portfolio at cost by control designation, investment type and by industry as of September 30, 2022:


Industry	1st Lien Term Loan		2nd Lien Term Loan		Subordinated Structured Notes		Unsecured Debt		Equity (B)		Cost Total
Control Investments
Aerospace & Defense	$	54,797	$	—	$	—	$	—	$	55,581	$	110,378
Commercial Services & Supplies	124,680		—		—		7,200		27,349		159,229
Construction & Engineering	56,753		—		—		—		11,550		68,303
Consumer Finance	452,388		—		—		—		81,303		533,691
Diversified Consumer Services	—		—		—		—		2,378		2,378
Energy Equipment & Services	81,566		—		—		—		221,150		302,716
Equity Real Estate Investment Trusts (REITs)	651,586		—		—		—		15,430		667,016
Health Care Providers & Services	278,429		—		—		—		45,118		323,547
Machinery	33,622		—		—		—		6,866		40,488
Media	29,723		—		—		—		—		29,723
Online Lending	25,080		—		—		—		—		25,080
Personal Products	73,104		—		—		—		189,295		262,399
Trading Companies & Distributors	32,708		—		—		—		32,500		65,208
Structured Finance (A)	196,200		—		—		—		—		196,200
Total Control Investments	$	2,090,636	$	—	$	—	$	7,200	$	688,520	$	2,786,356
Affiliate Investments
Commercial Services & Supplies	$	—	$	—	$	—	$	—	$	9,523	$	9,523
Diversified Consumer Services	70,639		153,931		—		—		—		224,570
Textiles, Apparel & Luxury Goods	—		—		—		—		2,805		2,805
Total Affiliate Investments	$	70,639	$	153,931	$	—	$	—	$	12,328	$	236,898
Non-Control/Non-Affiliate Investments
Air Freight & Logistics	$	92,620	$	95,000	$	—	$	—	$	—	$	187,620
Auto Components	22,348		112,179		—		—		—		134,527
Building Products	—		35,000		—		—		—		35,000
Capital Markets	—		42,500		—		—		—		42,500

Commercial Services & Supplies	68,786		185,304		—		—		1,500		255,590
Communications Equipment	9,214		50,585		—		—		—		59,799
Consumer Finance	47,028		—		—		—		—		47,028
Distributors	168,207		103,730		—		—		—		271,937
Diversified Consumer Services	—		22,713		—		—		—		22,713
Diversified Financial Services	36,816		—		—		—		—		36,816
Diversified Telecommunication Services	44,266		121,799		—		—		—		166,065



Food & Staples Retailing	27,437		—		—		—		—		27,437
Food Products	—		131,036		—		—		—		131,036
Health Care Equipment & Supplies	—		7,484		—		—		—		7,484
Health Care Providers & Services	181,414		159,664		—		—		1,546		342,624
Health Care Technology	128,973		—		—		—		—		128,973
Hotels, Restaurants & Leisure	23,127		—		—		—		—		23,127
Household Durables	96,475		29,777		—		—		2,001		128,253
Household Products	20,874		—		—		—		—		20,874

Interactive Media & Services	226,054		—		—		—		—		226,054
Internet & Direct Marketing Retail	20,217		—		—		—		—		20,217
IT Services	211,406		147,925		—		—		—		359,331
Leisure Products	67,879		—		—		—		1		67,880
Machinery	57,749		9,983		—		—		—		67,732
Media	51,098		—		—		—		26,991		78,089


Pharmaceuticals	25,536		—		—		—		—		25,536
Professional Services	66,785		123,606		—		—		—		190,391


Industry	1st Lien Term Loan		2nd Lien Term Loan		Subordinated Structured Notes		Unsecured Debt		Equity (B)		Cost Total
Software	—		52,309		—		—		—		52,309


Textiles, Apparel & Luxury Goods	165,628		8,939		—		—		—		174,567


Structured Finance (A)	—		—		990,723		—		—		990,723
Total Non-Control/Non-Affiliate	$	1,859,937	$	1,439,533	$	990,723	$	—	$	32,039	$	4,322,232
Total Portfolio Investment Cost	$	4,021,212	$	1,593,464	$	990,723	$	7,200	$	732,887	$	7,345,486

The following table shows the composition of our investment portfolio at fair value by control designation, investment type and by industry as of September 30, 2022:


Industry	1st Lien Term Loan			2nd Lien Term Loan			Subordinated Structured Notes			Unsecured Debt			Equity (B)			Fair Value Total			Fair Value % of Net Assets Applicable to Common Stock
Control Investments
Aerospace & Defense	$	54,797		$	—		$	—		$	—		$	7,225		$	62,022		1.6	%
Commercial Services & Supplies	76,017			—			—			7,200			280			83,497			2.1	%
Construction & Engineering	56,753			—			—			—			84,926			141,679			3.6	%
Consumer Finance	454,041			—			—			—			268,049			722,090			18.2	%
Diversified Consumer Services	—			—			—			—			3,833			3,833			0.1	%
Energy Equipment & Services	81,566			—			—			—			37,697			119,263			3.0	%
Equity Real Estate Investment Trusts (REITs)	651,586			—			—			—			761,144			1,412,730			35.7	%
Health Care Providers & Services	278,429			—			—			—			129,105			407,534			10.3	%
Machinery	33,622			—			—			—			22,496			56,118			1.4	%
Media	29,723			—			—			—			84,971			114,694			2.9	%
Online Lending	25,058			—			—			—			—			25,058			0.6	%
Personal Products	65,336			—			—			—			—			65,336			1.6	%
Trading Companies & Distributors	32,708			—			—			—			3,406			36,114			0.9	%
Structured Finance (A)	194,510			—			—			—			—			194,510			4.9	%
Total Control Investments	$	2,034,146		$	—		$	—		$	7,200		$	1,403,132		$	3,444,478		86.9	%
Fair Value % of Net Assets	51.3		%	—		%	—		%	0.2		%	35.4		%	86.9		%
Affiliate Investments
Commercial Services & Supplies	$	—		$	—		$	—		$	—		$	9,755		$	9,755		0.2	%
Diversified Consumer Services	69,029			151,818			—			—			66,904			287,751			7.3	%
Textiles, Apparel & Luxury Goods	—			—			—			—			19,769			19,769			0.5	%
Total Affiliate Investments	$	69,029		$	151,818		$	—		$	—		$	96,428		$	317,275		8.0	%
Fair Value % of Net Assets	1.7		%	3.8		%	—		%	—		%	2.5		%	8.0		%
Non-Control/Non-Affiliate Investments
Air Freight & Logistics	$	92,978		$	95,000		$	—		$	—		$	—		$	187,978		4.7	%
Auto Components	22,251			100,510			—			—			—			122,761			3.1	%
Building Products	—			34,669			—			—			—			34,669			0.9	%
Capital Markets	—			41,640			—			—			—			41,640			1.1	%

Commercial Services & Supplies	69,021			181,895			—			—			10,145			261,061			6.6	%
Communications Equipment	8,743			47,864			—			—			—			56,607			1.4	%
Consumer Finance	26,681			—			—			—			—			26,681			0.7	%
Distributors	160,832			6,076			—			—			2,012			168,920			4.2	%
Diversified Consumer Services	—			19,717			—			—			—			19,717			0.5	%
Diversified Financial Services	36,816			—			—			—			—			36,816			0.9	%
Diversified Telecommunication Services	43,854			119,457			—			—			—			163,311			4.1	%



Food & Staples Retailing	27,146			—			—			—			—			27,146			0.7	%
Food Products	—			125,700			—			—			—			125,700			3.2	%
Health Care Equipment & Supplies	—			6,894			—			—			—			6,894			0.2	%
Health Care Providers & Services	179,381			157,370			—			—			1,542			338,293			8.4	%
Health Care Technology	128,927			—			—			—			—			128,927			3.3	%
Hotels, Restaurants & Leisure	22,234			—			—			—			—			22,234			0.6	%


Industry	1st Lien Term Loan			2nd Lien Term Loan			Subordinated Structured Notes			Unsecured Debt			Equity (B)			Fair Value Total			Fair Value % of Net Assets Applicable to Common Stock
Household Durables	96,485			26,364			—			—			—			122,849			3.1	%
Household Products	20,874			—			—			—			—			20,874			0.5	%

Interactive Media & Services	226,054			—			—			—			—			226,054			5.7	%
Internet & Direct Marketing Retail	16,946			—			—			—			—			16,946			0.4	%
IT Services	210,459			138,251			—			—			—			348,710			8.8	%
Leisure Products	67,534			—			—			—			—			67,534			1.7	%
Machinery	56,713			9,749			—			—			—			66,462			1.7	%
Media	50,874			—			—			—			87			50,961			1.3	%


Pharmaceuticals	25,829			—			—			—			—			25,829			0.7	%
Professional Services	66,108			119,563			—			—			—			185,671			4.7	%

Software	—			50,013			—			—			—			50,013			1.3	%


Textiles, Apparel & Luxury Goods	165,628			8,734			—			—			—			174,362			4.4	%


Structured Finance (A)	—			—			695,292			—			—			695,292			17.5	%
Total Non-Control/Non-Affiliate	$	1,822,368		$	1,289,466		$	695,292		$	—		$	13,786		$	3,820,912		96.4	%
Fair Value % of Net Assets	46.0		%	32.6		%	17.5		%	—		%	0.3		%	96.4		%
Total Portfolio	$	3,925,543		$	1,441,284		$	695,292		$	7,200		$	1,513,346		$	7,582,665		191.3	%
Fair Value % of Net Assets	99.0		%	36.4		%	17.5		%	0.2		%	38.2		%	191.3		%

(A) Our SSN investments do not have industry concentrations and as such have been separated in the tables above.

(B) Equity, unless specifically stated otherwise, includes our investments in preferred stock, common stock, membership interests, net profits interests, net operating income interests, net revenue interests, overriding royalty interests, escrows receivable, and warrants.

[3]

The terms “Prospect,” “the Company,” “we,” “us” and “our” mean Prospect Capital Corporation and its subsidiaries unless the context specifically requires otherwise. The securities in which Prospect has invested were acquired in transactions that were exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These securities may be resold only in transactions that are exempt from registration under the Securities Act.