Prospect Capital Announces Sale of Valley Electric to MYR Group for Expected Gross Proceeds of $328 Million, Achieving a 4.8x Multiple of Invested Capital to Prospect Over Investment Lifetime
Rhea-AI Summary
Prospect Capital (NASDAQ:PSEC) agreed to sell its portfolio company Valley Electric to MYR Group for expected gross proceeds of about $328 million, closing around July 1, 2026.
Prospect expects about $280 million net exit proceeds, a 20.4% gross IRR, and a 4.8x multiple of invested capital since 2012, supported by Valley Electric’s 289% revenue growth during the investment period.
Positive
- Expected gross sale proceeds of approximately $328 million
- Expected net exit proceeds of approximately $280 million
- Realized gross annualized IRR of 20.4% on Valley Electric investment
- 4.8x multiple of invested capital over Valley Electric investment lifetime
- Valley Electric revenues expanded by 289% during Prospect’s investment period
Negative
- None.
News Market Reaction – PSEC
In the May 28 session, PSEC gained 1.28%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 07 | Quarterly results | Positive | -10.2% | Reported March 31, 2026 financials, NII, NAV and dividends. |
| May 06 | Earnings call notice | Neutral | +1.1% | Scheduled release and call for upcoming quarterly earnings. |
| May 04 | New investment | Positive | -3.2% | Completed $26M financing package for Security Fire Systems. |
| Apr 22 | Portfolio product launch | Positive | +1.3% | Ubique Group expanded Martha Stewart Lily Pond patio collection. |
| Feb 09 | Earnings report | Positive | +10.3% | Reported December 2025 results, NII, liquidity and portfolio mix. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent history shows mixed reactions: some positive operational and earnings updates led to gains, while other constructive or neutral announcements coincided with selloffs, indicating inconsistent pricing of news.
Over the last several months, PSEC reported multiple portfolio and capital markets developments. Earnings for quarters ended December 31, 2025 and March 31, 2026 highlighted sizeable net investment income, NAV per share around the mid-$6 range, and ongoing portfolio repositioning toward first-lien loans. The company also executed new investments such as the $26M Security Fire Systems financing and portfolio company product launches. Compared with these items, the Valley Electric sale adds another realized outcome from a long-held private investment.
Key Terms
internal rate of return financial
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multiple of invested capital financial
earn-out payment financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
NEW YORK, May 27, 2026 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”) a leading business development company focused on investing in middle-market businesses, today announced the successful sale of Prospect's portfolio company Valley Electric Company, Inc. (“Valley Electric”) to MYR Group Inc. (“MYR”), a leading specialty contractor serving the electric utility infrastructure, commercial, and industrial construction markets.
The closing of the transaction is expected to occur on or about July 1, 2026 for consideration of approximately
Founded in 1982, Valley Electric is a premier provider of electrical solutions for critical infrastructure across Washington state, California, and the Western United States. Valley Electric provides a comprehensive array of contracting services, including end-to-end installation, design-build, preventative maintenance, and related services for mission critical, transportation, and various industrial and commercial end markets.
During Prospect’s investment period, Valley Electric has achieved significant growth and geographical expansion, expanding revenues by
Prospect’s successful Valley Electric investment highlights our multi decade track record of identifying high-quality businesses and working alongside world-class management teams to drive value creation,” said Robert Melman, Managing Director at Prospect. “We are proud to have supported the Company in achieving strong growth while delivering attractive realized returns.”
About Prospect Capital Corporation
Prospect is a business development company that primarily lends to and invests in middle market privately-held companies. Prospect’s investment objective is to generate both current income and long-term capital appreciation.
Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. Prospect has elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.
About MYR Group Inc.
MYR Group is a holding company of leading specialty contractors serving the electric utility infrastructure, commercial and industrial construction markets throughout the United States and Canada who have the experience and expertise to complete electrical installations of any type and size. Their comprehensive services on electric transmission and distribution networks and substation facilities include design, engineering, procurement, construction, upgrade, maintenance and repair services. Transmission and distribution customers include investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners and other contractors. Commercial and industrial electrical contracting services are provided to general contractors, commercial and industrial facility owners, local governments, and developers. For more information, visit myrgroup.com.
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.
Internal Rate of Return (“IRR”) is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. IRR is gross of general expenses not related to specific investments as these expenses are not allocable to specific investments. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the repayment of a debt investment or sale of an investment or through the determination that no further consideration was collectible and, thus, a loss may have been realized. Prospect’s gross IRR calculations are unaudited. Information regarding internal rates of return are historical results relating to Prospect’s past performance and are not necessarily indicative of future results, the achievement of which cannot be assured.
For additional information, contact:
Grier Eliasek, President and Chief Operating Officer
grier@prospectcap.com
Telephone (212) 448-0702
