PRA Group vs Crescent BDC

This page compares PRA Group and Crescent BDC, examining their business models, financial performance, and market context in a clear, neutral way. It aims to help readers understand how each organisation operates, the sectors they engage with, and the factors that shape their risk and opportunity. Educational content, not financial advice.

This page compares PRA Group and Crescent BDC, examining their business models, financial performance, and market context in a clear, neutral way. It aims to help readers understand how each organisat...

About The Companies

PRA Group (PRAA)

PRA Group Inc (PRAA) is a specialist buyer and collector of non-performing consumer debt. The company purchases portfolios of charged-off loans at a discount and seeks to recover more than the purchase price through collections, settlements and legal recoveries. PRA operates primarily in the US with international operations that provide geographic diversification. Key things for investors to know include sensitivity to consumer credit cycles, regulatory and legal risk in multiple jurisdictions, and the importance of recovery rates, portfolio pricing and cost control to profitability. With a market capitalisation around $548.20M, PRAA is a smaller-cap financial-services company where cash flow visibility and reserve management often drive valuation. Performance can be volatile: collections fluctuate with economic conditions and regulatory change. This summary is general educational information, not personal advice; values can fall as well as rise and past performance is not a guide to future returns.

Crescent BDC (CCAP)

Crescent Capital BDC Inc (ticker: CCAP) is a publicly listed business development company (BDC) that provides debt and equity financing to US middle‑market companies. Investors should know it targets income generation through senior secured loans, subordinated debt and occasional equity positions, and typically uses leverage to enhance returns. CCAP’s market capitalisation is roughly $521.46M, reflecting a mid‑size BDC profile with corresponding liquidity and concentration considerations. BDCs often deliver higher yields than traditional equities but carry elevated credit and liquidity risk — performance depends on portfolio credit quality, interest‑rate movements and access to funding. This summary is for general educational purposes only and not investment advice; potential investors should consider suitability, read regulatory filings and consult an independent financial adviser before acting.

Comparison Snapshot

Key Financial Metrics

PRAA

Metric

CCAP

$678.09M

Market Cap

$553.41M

30.42%

Potential Profit

5.04%

Buy

Analyst Rating

Buy

Which Baskets Do They Appear In?

Phoenixes

These remarkable companies have risen from the ashes of bankruptcy or severe financial distress. Our analysts have carefully selected businesses that emerged stronger, leaner, and ready for their second act of growth after successful restructuring.

Published: June 17, 2025

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Which Baskets Do They Appear In?

Phoenixes

These remarkable companies have risen from the ashes of bankruptcy or severe financial distress. Our analysts have carefully selected businesses that emerged stronger, leaner, and ready for their second act of growth after successful restructuring.

Published: June 17, 2025

Explore Basket

Investment Analysis

PRA Group

PRAA

Pros

PRA Group reported strong Q3 2025 results with revenue of $311.14 million, surpassing expectations by 8.65% and cash collections growing 14% year-over-year to $542 million.
Adjusted EBITDA grew 15% year-over-year to $1.3 billion, demonstrating improving operational efficiency despite industry challenges.
The company operates globally with diverse nonperforming loan portfolios, providing exposure to multiple markets and steady portfolio revenue growth.

Considerations

PRA Group recorded a significant $413 million non-cash goodwill impairment charge in Q3 2025, resulting in an overall net loss.
Rising purchase price multiples for debt portfolios from 1.75x in 2023 to 2.14x projected in 2025 pressure acquisition economics and may compress future margins.
The company has shown persistent unprofitability trends with no margin improvement recently and faces challenges maintaining earnings quality amid rising costs.

Crescent BDC

CCAP

Pros

Crescent Capital BDC specializes in originating and investing in the debt of private middle market companies, providing access to a niche, less competitive market segment.
The company benefits from cyclial middle market lending demand trends which can drive attractive risk-adjusted returns compared to public market alternatives.
Crescent Capital BDC has expertise in managing credit risks through active portfolio management, potentially enhancing loan performance in varying economic conditions.

Considerations

Business development companies like Crescent Capital BDC face regulatory constraints and risk concentration in private credit, increasing exposure to credit losses during downturns.
The private middle market loan sector can be cyclical and sensitive to economic slowdown, potentially impacting income stability and credit quality.
Crescent Capital BDC may experience liquidity and exit challenges due to the illiquid nature of private debt investments compared to publicly traded securities.

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About The Companies

Comparison Snapshot

Which Baskets Do They Appear In?

Phoenixes

Which Baskets Do They Appear In?

Phoenixes

Investment Analysis

PRA Group

Pros

Considerations

Crescent BDC

Pros

Considerations

Why invest with Nemo?

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Frequently asked questions

About The Companies

Comparison Snapshot

PRA Group vs Crescent BDC

About The Companies

Comparison Snapshot

Which Baskets Do They Appear In?

Phoenixes

Which Baskets Do They Appear In?

Phoenixes

Investment Analysis

PRA Group

Pros

Considerations

Crescent BDC

Pros

Considerations

Why invest with Nemo?

Zero Commission

Trusted & Regulated

6% Interest on Cash

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PRA Group vs Blackstone Strategic Credit 2027 Term Fund

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Frequently asked questions

What do PRA Group and Crescent Capital BDC primarily do, and how do their business models differ?

How does the liquidity profile differ between a publicly traded collection-focused company and a private credit investor?

What do the recent earnings or performance highlights suggest about each company’s operating leverage?

What are the key risk factors highlighted for PRA Group and Crescent Capital BDC in the context of this comparison?

How should one interpret the impact of impairment charges versus EBITDA when comparing profitability?

In what market conditions might PRA Group’s debt-portfolio strategy perform differently from Crescent Capital BDC’s private middle market lending approach?

What role does regulation play in evaluating the investment context for each company?

What should a beginner look for when comparing financial statements of PRA Group and Crescent Capital BDC?

How can investors use the context of the provided pros and cons to frame questions in an earnings call?

Why is it useful to compare a provider of nonperforming loan portfolios with a private credit investor side-by-side?

What educational takeaway can be drawn about the overall health of the debt markets from this comparison?

Is this page offering financial advice or a recommendation, and how should readers use the information?

About The Companies

Comparison Snapshot