Prospect Capital Advisors manages investments for pooled investment vehicles (the Funds) and separately managed accounts (SMAs). The Funds primarily invest in publicly traded domestic equities with the goal of generating absolute returns. Prospect's investment approach focuses on microeconomic analysis and risk minimization through in-depth analysis of portfolio companies. SMA investment strategies may be similar to the Funds, tailored to the client's tolerance and goals.
Fee Structure
Prospect Capital Advisors manages investments for pooled investment vehicles (the Funds) and separately managed accounts (SMAs).
For the Funds, Prospect receives an asset-based fee of 1% per year, billed quarterly in advance. Prospect also receives an incentive allocation of 20% of the profits generated each year.
For SMAs, Prospect receives an incentive fee. The incentive fee varies based on the SMA type and underlying agreements.
To pay an incentive allocation/fee, each client and investor must have a net worth of at least $2.2 million individually (or jointly with a spouse) or at least $1,100,000 invested with Prospect.