Prospect Capital will exit its 14-year investment in Valley Electric, generating a 20.4% annualized return and nearly 5x original capital.
Prospect Capital Corporation (NASDAQ:PSEC) agreed to sell Valley Electric Company to MYR Group for $328 million. The deal is expected to close by July 1, 2026, with net proceeds estimated at $280 million after adjustments and earn-outs.
Valley Electric, acquired in 2012, saw revenues grow 289% under Prospect’s ownership. The exit reflects a 20.4% annualized return, nearly quintupling the original investment when including prior cash flows.
Prospect highlighted the sale as evidence of its long-term investment strategy in private businesses. The company focuses on debt and equity investments in middle-market firms.