Capital Southwest Corporation is a business development company specializing in credit and private equity and venture capital investments in middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, recapitalizations and growth capital investments. It does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing. In lower middle market, the firm typically invests in growth financing, bolt-on acquisitions, new platform acquisitions, refinancing, dividend recapitalizations, sponsor-led buyouts, and management buyouts situations. The investment structures are Unitranche debt, subordinated debt, senior debt, first and second lien debt, and preferred and common equity. The firm makes equity co-investments alongside debt investments, up to 20% of total check and only makes non-control investments. It prefers to invest in Industrial manufacturing and services, value-added distribution, healthcare products and services, business services, specialty chemicals, food and beverage, tech-enabled services and SaaS models. The firm seeks to invest in energy services and products, industrial technologies, and specialty chemicals and products. Within energy services and products, the firm seeks to invest in each segment of the industry, including upstream, midstream and downstream, excluding exploration and production with a focus on differentiated products and services, equipment and tool rental, consumable products, and drilling and completion chemicals. Within industrial technologies, it seeks to invest in automation and process controls, handling and packaging equipment, industrial filtration and fluid handling, measurement, monitoring and testing, professional tools, and sensors and instrumentation. Within and specialty chemicals and products, the firm seeks to invest in businesses that develop and manufacture highly differentiated chemicals and products including adhesives, coatings and sealants, catalysts and absorbents, cosmeceuticals, fine chemicals, flavors and fragrances, performance lubricants, polymers, plastics and composites, chemical dispensing and filtration equipment, professional and industrial trade consumables and tools, engineered solutions for HVAC, plumbing, and electrical installations, specified high performance materials for fire protection and oilfield applications. It may also invest in exceptional opportunities in building products. The firm seeks to invest in the United States. The firm seeks to make investments ranging from $5 to $25 million in securities. It seeks to make equity investments ranging from $5 million to $50 million and debt investments between $5 million and $20 million and co-invest in transaction size up to $40 million. It prefers to invest in companies with revenues approaching above $10 million, profitable operations, historical growth rate of at least 15 percent per year. Within the lower middle market, it seeks to invest in with less than $15 million in EBITDA and also opportunistically invests in the upper middle market, generally defined as companies with EBITDA in excess of $50 million. In addition to making direct investments, the firm allocates capital to syndicated first and second lien term loans in the upper middle market. Criteria for Upper Middle Market Syndicated 1st Lien is EBITDA Size more than $30 million, Closing Leverage greater than 4 times, investment hold size between $5 million and $7 million, investment yield greater than 6.5%. Criteria for Upper Middle Market Syndicated 2nd Lien is EBITDA Size more than $50 million, Closing Leverage greater than 6 times, investment hold size between $5 million and $7 million, investment yield greater than 9%. It prefers to take a majority and minority stake. The firm has the flexibility to hold investments for very long period in its portfolio companies. It may also invest through warrants. The firm prefers to take Board participation in its portfolio companies. Capital Southwest Corporation was founded on April 19, 1961 and is based in Dallas, Texas.

	Mar '14	Mar '15	Mar '16	Mar '17	Mar '18	Mar '19	Mar '20	Mar '21	Mar '22	Mar '23
net income	112.01M -	53.44M 52.29%	-5.40M 110.10%	23.47M 534.70%	39.31M 67.45%	33.06M 15.90%	-22.35M 167.61%	50.88M 327.65%	42.81M 15.86%	33.09M 22.71%
depreciation and amortization	23K -	55K 139.13%	86K 56.36%	459K 433.72%	927K 101.96%	1.39M 50.27%	2.40M 72.65%	1.97M 18.21%	2.23M 13.37%	2.75M 23.32%
deferred income tax	-203K -	-528K 160.10%	-1.28M 142.05%	1.81M 241.86%	-537K 129.62%	53K 109.87%	1.37M 2,481.13%	3.78M 176.61%	2.40M 36.52%	6.37M 165.15%
stock based compensation	-103.53M -	142.91M 238.04%	-1.26M 100.88%	-2.03M 61.30%	-517K 74.58%	-130.22M 25,088.39%	-1.37M 98.95%	-3.78M 176.61%	-2.40M 36.52%	3.71M 254.25%
change in working capital	569K -	-2.09M 468.01%	2.43M 216.14%	-7.75M 418.87%	993K 112.80%	288K 71.00%	-5.57M 2,032.99%	6.63M 219.15%	-2.52M 137.92%	-3.88M 54.31%
accounts receivables						-4.41M -	-80K 98.19%	222K 377.50%	-3.77M 1,797.75%	-4.67M 23.77%
inventory
accounts payables
other working capital						4.70M -	-5.49M 216.77%	6.41M 216.84%	1.25M 80.44%	784K 37.48%
other non cash items	-4.24M -	-53.87M 1,169.69%	-106.08M 96.92%	-105.52M 0.54%	-104.04M 1.40%	726K 100.70%	-22.43M 3,190.08%	-127.73M 469.38%	-225.21M 76.31%	-269.14M 19.51%
net cash provided by operating activities	4.63M -	139.91M 2,924.51%	-111.51M 179.70%	-89.56M 19.68%	-63.86M 28.69%	-94.71M 48.30%	-47.95M 49.37%	-68.25M 42.35%	-182.68M 167.65%	-227.10M 24.32%
investments in property plant and equipment									-2.00M -	-281K 85.91%
acquisitions net									2.00M -
purchases of investments	-12.61M -	-7.42M 41.14%	-123.01M 1,557.65%	-145.78M 18.51%	-166.18M 14.00%	-229.60M 38.16%	-196.61M 14.37%	-219.35M 11.57%	-499.22M 127.59%	-433.20M 13.22%
sales maturities of investments	15.99M -	205.53M 1,185.35%	19.64M 90.44%	52.26M 166.05%	82.59M 58.04%	108.60M 31.48%	123.75M 13.96%	115.43M 6.73%	271.04M 134.81%	141.72M 47.71%
other investing activites									228.18M -	291.49M 27.74%
net cash used for investing activites	3.38M -	198.11M 5,755.93%	-103.37M 152.18%	-93.52M 9.53%	-83.59M 10.62%	-121.00M 44.76%	-72.85M 39.79%	-103.92M 42.64%	-2.00M 98.08%	-281K 85.91%
debt repayment			-523K -		-61M -	-45M 26.23%	-119M 164.44%	-293.14M 146.33%	-355M 21.10%	-155M 56.34%
common stock issued					130.04M -	18.89M 85.47%	26.08M 38.08%	50.41M 93.26%	98.14M 94.69%	202.96M 106.80%
common stock repurchased					-588K -	-185K 68.54%	-9.21M 4,877.84%	369.03M 4,107.29%	-1.41M 100.38%	-1.02M 27.49%
dividends paid	-3.05M -	-3.08M 1.08%	-14.54M 371.75%	-5.99M 58.79%	-18.59M 210.08%	-42.53M 128.86%	-50.34M 18.36%	-39.95M 20.65%	-58.62M 46.76%	-71.10M 21.28%
other financing activites	4.82M -	803K 83.34%	-3.25M 505.35%	21.97M 774.96%	-478K 102.18%	165.55M 34,734.31%	204.24M 23.37%	-239K 100.12%	481.38M 201,513.81%	261.70M 45.63%
net cash used provided by financing activities	1.77M -	-2.28M 228.81%	-18.32M 703.60%	15.98M 187.20%	49.38M 209.11%	96.72M 95.86%	51.77M 46.48%	86.12M 66.36%	164.49M 91.00%	237.53M 44.41%
effect of forex changes on cash	-3.38M -	-198.11M 5,755.93%	103.37M 152.18%	93.52M 9.53%	83.59M 10.62%	121.00M 44.76%	72.85M 39.79%	103.92M 42.64%
net change in cash	6.40M -	137.63M 2,051.88%	-129.83M 194.33%	-73.58M 43.32%	-14.48M 80.32%	2.02M 113.93%	3.82M 89.39%	17.87M 367.77%	-20.18M 212.94%	10.15M 150.31%
cash at beginning of period	81.77M -	88.16M 7.82%	225.80M 156.11%	95.97M 57.50%	22.39M 76.67%	7.91M 64.68%	9.92M 25.51%	13.74M 38.49%	31.61M 130.01%	11.43M 63.84%
cash at end of period	88.16M -	225.80M 156.11%	95.97M 57.50%	22.39M 76.67%	7.91M 64.68%	9.92M 25.51%	13.74M 38.49%	31.61M 130.01%	11.43M 63.84%	21.59M 88.83%
operating cash flow	4.63M -	139.91M 2,924.51%	-111.51M 179.70%	-89.56M 19.68%	-63.86M 28.69%	-94.71M 48.30%	-47.95M 49.37%	-68.25M 42.35%	-182.68M 167.65%	-227.10M 24.32%
capital expenditure									-2.00M -	-281K 85.91%
free cash flow	4.63M -	139.91M 2,924.51%	-111.51M 179.70%	-89.56M 19.68%	-63.86M 28.69%	-94.71M 48.30%	-47.95M 49.37%	-68.25M 42.35%	-184.67M 170.57%	-227.38M 23.13%

NASDAQ:CSWC

Capital Southwest Corporation

Last Close

25.99

17/05 20:00

Market Cap

998.38M

Beta: 1.24

Volume Today

243.55K

Avg: 333.20K

PE Ratio

10.85

PFCF: −11.77

Dividend Yield

9.91%

Payout:46.90%