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Prospect Capital President Grier Eliasek on Acquiring Over Lending

TheStreet

Prospect Capital is one of the top-yielding stocks in a sector known as business development companies, typically publicly-traded lenders that target small to mid-size companies. Grier Eliasek, president and chief operating officer of Prospect Capital, explains why the company, unlike most other BDCs, focuses on acquiring rather than lending. Eliasek responds to critics who argue this structure presents more risks--reflected in the fact that Prospect's dividend is among the highest yielding in the sector. Looking forward, as the company will be making changes to its accounting methods as the result of a dispute with the SEC, Eliasek reveals how Prospect's future acquisition strategy will be affected.