Capital Southwest Corporation

Capital Southwest Corporation is an internally managed Business Development Company (BDC) specializing in providing customized financing solutions to middle-market companies in the United States. Established in 1961 and headquartered in Dallas, Texas, the company's core mission is to be a premier provider of flexible financing, fostering the growth of its portfolio companies while generating attractive risk-adjusted returns for its shareholders.

The company offers a range of financing solutions, primarily through debt and equity investments, typically ranging from $5 million to $50 million per transaction. Its investment portfolio predominantly consists of first-lien senior secured debt, complemented by second-lien debt, subordinated debt, preferred stocks, common stocks, and warrants. Capital Southwest focuses on the U.S. middle market, particularly businesses with earnings (EBITDA) generally between $3 million and $25 million, and avoids investments in startups, publicly traded companies, real estate, project finance, and troubled entities.

In February 2025, Michael Sarner was appointed President and Chief Executive Officer, succeeding Bowen Diehl, with Chris Rehberger becoming Chief Financial Officer, Treasurer, and Secretary. Recent strategic developments include the formation of a 50/50 joint venture with Trinity Capital in March 2026, where each partner committed $50 million to invest in first-out senior secured debt in the lower middle market. This initiative aims to enhance Capital Southwest's competitive edge and expand its investment opportunities. As of December 31, 2025, the company managed approximately $2.0 billion in investments at fair value, maintaining a market position as a specialized lender with a defensively structured portfolio focused on income generation.