Many point to Prospect Capital's sizable 14.3% dividend yield that is paid to shareholders monthly in addition to the fact that the firm is currently trading for a 27.4% discount to its NAV. Nevertheless, these unique and optimistic factors neglect to take into account the substantial management and incentive fees that are paid to Prospect Capital's investment adviser, Prospect Capital Management. Investment adviser fees and recent weak portfolio performance create additional risk to the BDC's returns and as such, investors should avoid Prospect Capital.