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
revenue	119.72M -	66.11M 44.78%	14.55M 78.00%	38.39M 163.95%	53.19M 38.54%	48.87M 8.12%	62.04M 26.94%	72.58M 16.98%	83.00M 14.37%	61.45M 25.96%
cost of revenue	1.80M -	2.60M 44.69%				1.39M -	62.27M 4,370.57%	1.97M 96.84%	2.23M 13.37%	2.75M 23.32%
gross profit	117.93M -	63.52M 46.14%	14.55M 77.10%	38.39M 163.95%	53.19M 38.54%	47.48M 10.74%	-236K 100.50%	70.61M 30,019.07%	80.77M 14.39%	58.70M 27.32%
selling and marketing expenses
general and administrative expenses	2.79M -	5.96M 113.96%	11.71M 96.36%	4.43M 62.12%	4.42M 0.32%	4.80M 8.57%	5.60M 16.73%	5.18M 7.60%	6.57M 26.83%	7.81M 18.98%
selling general and administrative expenses	2.79M -	5.96M 113.96%	11.71M 96.36%	4.43M 62.12%	4.42M 0.32%	4.80M 8.57%	5.60M 16.73%	5.18M 7.60%	6.57M 26.83%	7.81M 18.98%
research and development expenses
other expenses	5.67M -	6.44M 13.68%	9.52M 47.75%	8.38M 11.90%	9.40M 12.16%	10.14M 7.90%	10.31M 1.59%	11.84M 14.87%	29.60M 150.01%	13.57M 54.13%
cost and expenses	2.79M -	5.96M 113.96%	21.22M 255.93%	12.82M 39.61%	13.82M 7.84%	14.95M 8.12%	15.91M 6.45%	17.02M 6.95%	36.16M 112.53%	50.26M 38.99%
operating expenses	8.45M -	12.40M 46.75%	21.22M 71.12%	12.82M 39.61%	13.82M 7.84%	14.95M 8.12%	15.91M 6.45%	17.02M 6.95%	36.16M 112.53%	21.39M 40.86%
interest expense				989K -	4.88M 392.92%	12.18M 149.81%	15.84M 30.04%	17.94M 13.29%	19.92M 11.05%	28.87M 44.92%
ebitda	111.29M -	53.77M 51.69%	-6.59M 112.26%	27.02M 509.95%	45.17M 67.15%	47.50M 5.15%	-13.74M 128.93%	57.53M 518.69%	68.99M 19.93%	69.04M 0.07%
operating income	-2.16M -	-5.37M 148.29%	-6.68M 24.40%	26.57M 497.80%	44.24M 66.55%	46.11M 4.21%	-16.14M 135.02%	55.56M 444.14%	66.76M 20.16%	68.94M 3.26%
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%	101K 95.47%
total other income expenses net	6.32M -	3.19M 49.45%		-989K -	-4.88M 392.92%	-12.18M 149.81%	-15.84M 30.04%	-18.95M 19.65%	-19.92M 5.15%	-28.87M 44.92%
income before tax	111.27M -	53.71M 51.73%	-6.68M 112.43%	25.58M 482.99%	39.37M 53.93%	33.93M 13.82%	-16.14M 147.59%	55.56M 444.14%	46.84M 15.70%	40.07M 14.46%
income tax expense	-739K -	270K 136.54%	-1.28M 573.33%	2.10M 264.48%	62K 97.05%	870K 1,303.23%	6.21M 613.33%	4.68M 24.62%	4.03M 13.96%	6.97M 73.24%
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%
weighted average shs out	15.23M -	15.49M 1.74%	15.64M 0.93%	15.82M 1.21%	16.07M 1.57%	16.73M 4.07%	18.00M 7.61%	19.06M 5.89%	22.84M 19.83%	30.02M 31.42%
weighted average shs out dil	15.30M -	15.53M 1.52%	15.72M 1.24%	15.88M 0.98%	16.14M 1.65%	16.73M 3.69%	18.00M 7.56%	19.06M 5.89%	22.84M 19.83%	30.02M 31.42%
eps	7.36 -	3.45 53.13%	-0.35 110.14%	1.48 522.86%	2.45 65.54%	1.98 19.18%	-1.24 162.63%	2.67 315.32%	1.87 29.96%	1.10 41.18%
epsdiluted	7.32 -	3.44 53.01%	-0.34 109.88%	1.48 535.29%	2.44 64.86%	1.98 18.85%	-1.24 162.63%	2.67 315.32%	1.87 29.96%	1.10 41.18%

NASDAQ:CSWC

Capital Southwest Corporation

Last Close

25.99

17/05 20:00

Market Cap

998.38M

Beta: 1.24

Volume Today

242.18K

Avg: 333.20K

PE Ratio

10.85

PFCF: −11.77

Dividend Yield

9.91%

Payout:46.90%