Capital Southwest (NASDAQ:CSWC) (NASDAQ: CSWC) is a business development company that provides customized financing solutions to U.S. middle-market companies. As a non-bank lender, it offers a range of debt and equity instruments, including senior and mezzanine loans, preferred and common equity investments, and other structured financing arrangements. The company targets businesses with proven track records and growth potential across a broad array of industries, such as business services, healthcare, technology, energy and manufacturing.
Founded in 1961 and headquartered in Dallas, Texas, Capital Southwest has evolved from a regional investment firm into a publicly traded entity listed on the NASDAQ. Over its history, the company has completed hundreds of transactions with private companies, assisting management teams in executing growth strategies, recapitalizations, buyouts and dividend recapitalizations. Through this track record, Capital Southwest has developed sector expertise and a disciplined underwriting process aimed at preserving capital and generating consistent returns.
Capital Southwest operates under a regulated BDC structure, which requires it to distribute at least 90% of taxable income as dividends to shareholders while maintaining certain asset coverage and diversification standards. The firm’s investment team conducts thorough due diligence, leveraging its deep industry knowledge and relationships to structure financing that aligns the interests of borrowers and investors. Its portfolio companies benefit from both capital and strategic support, including board representation and operational guidance.
The company is overseen by a board of directors and managed by an experienced executive team with decades of private equity, credit and corporate finance expertise. This leadership group is responsible for setting investment strategy, maintaining risk controls and ensuring that Capital Southwest adheres to its fiduciary commitments. With a focus on the U.S. middle market, the firm aims to deliver sustainable income for shareholders while supporting the growth and innovation of its portfolio companies.
