Capital Southwest CorpCSWC
What Capital Southwest Corp does.
Capital Southwest Corporation (“we,” “our,” “us,” “CSWC,” or the “Company”), a Texas corporation, is an internally managed closed-end, non-diversified investment company that has elected to be regulated as a business development company, or BDC, under the Investment Company Act of 1940, as amended, or the 1940 Act. Because CSWC is internally managed, all of the executive officers and other employees are employed by CSWC. Therefore, CSWC does not pay any external investment advisory fees, but instead directly incurs the operating costs associated with employing investment and portfolio management professionals.
Since September 30, 2015, we have pursued a credit-focused investment strategy. We specialize in providing customized financing to lower middle market ("LMM") companies in a broad range of industry segments located primarily in the United States. We invest primarily in first lien debt securities and also invest in preferred stock and common stock alongside our debt investments or through warrants. Our common stock trades on The Nasdaq Global Select Market under the ticker symbol “CSWC.”
As a BDC, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70% of our assets in “qualifying assets,” including securities of private or thinly traded public U.S. companies, cash, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. In addition, effective April 25, 2019, we are allowed to borrow money such that our asset coverage, as defined in the 1940 Act, equals at least 150% after such borrowing. Additionally, the Board of Directors approved a resolution that limits the Company's issuance of senior securities such that the asset coverage ratio, taking into account any such issuance, would not be less than 166%, at any time after the effective date.
Revenue and profit, by fiscal year.
| Fiscal year | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|
| Revenue | — | — | — | — | — | — |
| Net income | $50.9M | $42.8M | $33.1M | $83.4M | $70.5M | $113.0M |
| Free cash flow | -$68.3M | -$184.7M | -$227.4M | -$188.5M | -$218.9M | -$193.8M |
More on CSWC.
- Capital Southwest Corp summary
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- Capital Southwest Corp earnings
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Figures from Capital Southwest Corp's filings with the U.S. SEC, standardised automatically; prices are end-of-day closes. Not financial advice.