Capital Southwest Corporation

Capital Southwest Corporation is a business development company that provides credit, private equity, and venture capital investments to lower middle market companies. The firm focuses on mezzanine, later stage, mature, late venture, emerging growth, buyouts, industry consolidation, recapitalizations, and growth capital investments. It typically invests in growth financing, bolt-on acquisitions, new platform acquisitions, refinancing, dividend recapitalizations, sponsor-led buyouts, and management buyout situations. The firm structures its investments as unitranche debt, subordinated debt, senior debt, first and second lien debt, and preferred and common equity. It makes equity co-investments alongside debt investments, up to 20% of total check, and only makes non-control investments. Capital Southwest does not invest in startups, publicly traded companies, real estate developments, project finance, oil and gas exploration, troubled companies, turnarounds, or companies where senior management is departing.

Capital Southwest Corporation is listed on the Nasdaq Global Select Market (NasdaqGS) under the ticker symbol CSWC. Its securities trade in US Dollars (USD), as the company is based in the United States. The exchange is a major US stock exchange that lists many financial services and asset management firms. Investors can trade CSWC shares during regular market hours, and the stock is part of the broader US equity market. The company's financial reporting is also in USD, aligning with its domestic operations and investor base.

Capital Southwest Corporation operates in the Financial Services sector and is classified under the Asset Management industry. As an asset management firm, it specializes in managing investments on behalf of its shareholders, focusing on credit and equity investments in lower middle market companies. The company's business development company (BDC) structure allows it to provide financing to small and mid-sized businesses that may not have access to traditional bank loans. Its industry focus is broad but includes industrial manufacturing and services, value-added distribution, healthcare products and services, business services, specialty chemicals, food and beverage, tech-enabled services, and SaaS models. Within energy, it targets energy services and products, industrial technologies, and specialty chemicals, excluding exploration.

Capital Southwest Corporation generates returns by making debt and equity investments in lower middle market companies. Its investment structures include unitranche debt, subordinated debt, senior debt, first and second lien debt, and preferred and common equity. The firm typically invests in growth financing, bolt-on acquisitions, new platform acquisitions, refinancing, dividend recapitalizations, sponsor-led buyouts, and management buyout situations. It makes equity co-investments alongside debt investments, but limits equity to up to 20% of the total check and only makes non-control investments. The company is industry agnostic but prefers sectors like industrial manufacturing, healthcare, business services, specialty chemicals, food and beverage, and tech-enabled services. It avoids startups, publicly traded companies, real estate, project finance, oil and gas exploration, troubled companies, and turnarounds. Revenue comes from interest on debt investments and capital gains from equity investments.