Behringer Harvard Holdings LLC (Behringer Harvard) and Prospect Capital Management LLC (Prospect Capital) announced today the launch of their joint venture targeting the development, management, and distribution of alternative investment programs. Addressing the challenges presented by today's low-yielding fixed-income vehicles, the programs sponsored by Behringer Harvard and Prospect Capital will focus on high-yielding debt and equity opportunities.

With offices in New York City, Prospect Capital, with its predecessors and affiliates, has a 24-year history of investing in and managing high-yielding debt and equity investments, using both private partnership and publicly-traded closed-end structures.

Through this joint venture, both firms will leverage their expertise in co-advisor roles. Behringer Harvard will lead capital-raising for such alternative investment programs through its relationships with a wide network of independent financial advisors. Prospect Capital will lead the investment strategy for each investment program that the partners co-advise. Both companies offer seasoned management teams with experience in navigating alternative investment programs through multiple economic environments and business cycles.

"We're pleased that this new venture brings together two senior management teams with significant experience and a long track record of successful alternative investment programs," said Mr. Robert Aisner, President and CEO of Behringer Harvard. "We believe that this depth of experience, combined with our disciplined investment approach, bodes well for our ability to successfully execute our investment strategies."

"Prospect Capital is delighted to be working with the experienced team at Behringer Harvard with the goal of bringing differentiated, best-in-class products to the investment community," said Mr. Grier Eliasek, President of Prospect Capital.

"This joint venture is an important part of Behringer Harvard's strategic initiatives to offer a broader range of industry-leading alternative investment opportunities that go beyond our core competencies in commercial real estate," said Mr. Frank Muller, Executive Vice President of Behringer Harvard.