Capital Southwest
Capital Southwest Corporation is an internally managed, publicly traded business development company that provides flexible first lien senior secured debt and equity co-investments to lower middle market companies with $3–25 million in EBITDA, managing approximately $2.0–$2.2 billion across roughly 131 portfolio companies.
- Company typePublic
- Founded2015
- HeadquartersDallas, United States
- Headcount11–50
- GTM typeB2B
- OfferingServices
What Capital Southwest does
Capital Southwest Corporation (NASDAQ: CSWC) is an internally managed, publicly traded business development company (BDC) regulated under the Investment Company Act of 1940, headquartered in Dallas, Texas. The company provides flexible capital solutions to lower middle market companies, primarily originating directly sourced first lien senior secured debt to private-equity-backed borrowers with $3–25 million of EBITDA, with deal hold sizes typically between $5 million and $45 million and total financings up to $75 million. As of March 2026, Capital Southwest manages approximately $2.0–2.2 billion in assets across 131–132 portfolio companies, having invested over $2.5 billion in more than 150 companies since transitioning to its internally managed structure in 2015.
The company's investment approach spans unitranche debt (including last-out), first lien debt, subordinated debt, and minority equity co-investments. Approximately 99% of the portfolio is in first lien senior secured debt and roughly 95% is floating rate, yielding a weighted-average lending yield of 11.3% against a weighted-average borrowing cost of 5.95%. Capital Southwest also operates a Dividend Reinvestment Plan (DRIP) administered through Equiniti Trust Company and has paid dividends for 44 consecutive years.
Capital Southwest earns revenue primarily through interest income on its loan portfolio, supplemented by equity co-investment gains and NAV appreciation. The firm originated $762 million across 79 investments in the trailing twelve months, supports a quarterly regular dividend of $0.58 per share plus a $0.06 supplemental dividend, and is rated BBB- (Fitch) / Baa3 (Moody's). Its Q3 FY2026 investment income was $61.45 million, up 17% year-over-year, with 106% dividend coverage over the trailing twelve months. Recent strategic actions include the formation of a $100 million joint venture with Trinity Capital (March 2026), a $350 million public notes offering (September 2025), a $52.6 million ATM equity raise at 127% of NAV (January 2026), and an upsized $485 million senior secured credit facility (accordion to $750 million).
Capital Southwest firmographics
Firmographics- Name
- Capital Southwest
- Legal name
- Capital Southwest Corporation
- Website
- https://capitalsouthwest.com
- Company type
- Public
- Founded year
- 2015
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- Capital Southwest Corporation is an internally managed, publicly traded business development company that provides flexible first lien senior secured debt and equity co-investments to lower middle market companies with $3–25 million in EBITDA, managing approximately $2.0–$2.2 billion across roughly 131 portfolio companies.
- Ownership category
- akta.pro rank
Capital Southwest industry classification
Industry- Product category
- Middle Market Direct Lending
- NAICS
- Other Financial Investment Activities (5239)
- SIC
- Miscellaneous Business Credit Institution (6159)
- akta.pro primary industry
- BDC / Public Vehicle Venture Debt Providers (FSANAIAC)
- akta.pro secondary industry
- Middle-Market Lending (FSANADAI)
Keywords
Where Capital Southwest is headquartered
LocationHeadquarters
- HQ city
- Dallas
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
Capital Southwest business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Operations, Personnel, Technology or R&D, Marketing or Sales, Others
Revenue model
- Interest Income from Debt Investments: Capital Southwest generates the majority of its revenue from interest income on its floating-rate loan portfolio. The company has a $2.01 billion portfolio across 132 private-equity-backed lower middle market companies, with 99% in first lien senior secured floating-rate debt yielding approximately 11.3% weighted average lending yield.
- Equity Co-Investments: The company generates additional returns through minority equity co-investments alongside debt investments, benefiting from successful portfolio company exits and realizations.
- Capital Appreciation: NAV growth and unrealized gains on the investment portfolio contribute to shareholder returns, with the company expanding its portfolio to approximately $2.0 billion in total fair value across 132 companies.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Monthly | Monthly Regular Dividend |
| Subscription | Multi-year contract | Quarterly Supplemental Dividend |
Go-to-market motion2 records
Distribution channels1 record
Marketing channels4 records
Capital Southwest product offering
Product offeringCore offering
Capital Southwest is an internally managed business development company (BDC) that originates and holds direct debt and equity investments in U.S. lower middle market companies with $3–25 million of EBITDA, providing financing of $5–75 million per transaction. Its core offerings include first lien senior secured floating-rate debt (99% of the portfolio), unitranche debt (including last-out), subordinated debt, and minority equity co-investments, with an approximately $2.0–2.2 billion portfolio across roughly 131 portfolio companies.
Product overview
Capital Southwest is an internally managed, credit-focused Business Development Company (BDC) providing flexible capital solutions to lower middle market companies. The company operates a unified platform offering multiple investment structures including First Lien Senior Secured Debt, Unitranche Debt (including Last-Out), Subordinated Debt, and Equity Co-Investments for companies with $3-25 million EBITDA seeking $5-75 million financing. In addition to its core lending products, the company offers shareholder value services including monthly dividend payments, supplemental dividends, and a Dividend Reinvestment Plan (DRIP) administered through Equiniti Trust Company. The company also formed a $100 million joint venture with Trinity Capital in March 2026 for first-out senior secured debt investments in the lower middle market.
Differentiator
Problem solved
Functional benefit
Products and services
- First Lien Senior Secured Debt Core credit-focused investment product providing first lien senior secured debt to U.S. lower middle market companies with $3–25 million EBITDA; represents approximately 99% of Capital Southwest's investment portfolio.
- Unitranche Debt (including Last-Out) Combined senior secured debt financing that merges first and second lien characteristics into a single instrument, offered as part of flexible capital structures for lower middle market borrowers.
- Subordinated Debt Subordinated debt investments provided as part of comprehensive financing solutions for lower middle market portfolio companies.
- Equity Co-Investments Non-control minority equity co-investments made alongside debt investments to support portfolio company growth and align Capital Southwest's interests with sponsors and management.
- Dividend Reinvestment Plan (DRIP) Plan administered through Equiniti Trust Company that allows registered shareholders of Capital Southwest common stock to automatically reinvest dividends into additional shares through open market purchases.
Quantifiable outcome
- 11.3% weighted average lending yield against 5.95% borrowing costs, generating meaningful net interest margin spread
- +4 more outcomes
Companies that use Capital Southwest
Customer profileNamed customers4 records
Segments4 records
Ideal customer profiles3 records
Capital Southwest technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Capital Southwest partnerships and signals
Strategic signalPartnerships
Two partnerships are on record, tiered core and minor.
- Trinity Capital Inc.coreCapital Southwest and Trinity Capital formed a $100 million joint venture focused on investing in first-out senior secured debt opportunities in the lower middle market. Each company contributed $50 million for a 50% equity stake. The venture is governed by a joint board with equal representation from both partners and leverages a senior-secured credit facility for funding. The partnership enhances competitive positioning and diversifies portfolios in the lower middle market segment.
- Equiniti Trust CompanyminorEquiniti Trust Company serves as the transfer agent, dividend-paying agent, and registrar for Capital Southwest's common stock. The company also administers Capital Southwest's Dividend Reinvestment Plan (DRIP) for registered shareholders who have opted in.
Scale indicators17 records
Recent moves7 records
Capital Southwest competitors and assessment
Company assessmentDirect peers
- Hercules Capital: Hercules Capital (NYSE: HTGC) is a BDC providing senior secured loans to venture growth and lower middle market companies. Comparable BDC structure and senior-secured lending approach.
- Trinity Capital: Trinity Capital (NASDAQ: TRIN) is a specialty lending BDC focused on sponsor-backed and equipment financing in the lower middle market. Capital Southwest's joint venture partner and most direct peer in size, strategy, and geography.
- Main Street Capital: Main Street Capital (NYSE: MAIN) is the largest publicly traded BDC focused on lower middle market companies. Direct comparable in business model, target segment, and product mix including first-lien debt and equity co-investments.
- Golub Capital BDC: Golub Capital BDC (NASDAQ: GBDC) is a leading BDC focused on one-stop senior secured loans to middle market sponsor-backed companies. Comparable in lower middle market focus and direct lending model.
- Oaktree Specialty Lending: Oaktree Specialty Lending (NASDAQ: OCSL) is a BDC managed by Oaktree Capital that provides senior secured loans to middle market companies. Direct peer in product structure and lower middle market focus.
- Sixth Street Specialty Lending: Sixth Street Specialty Lending (NYSE: TSLX) is a BDC providing flexible financing solutions to middle market companies. Comparable in lower middle market focus, floating-rate lending, and equity co-investments.
- New Mountain Finance: New Mountain Finance (NASDAQ: NMFC) is a BDC providing senior and subordinated loans to defensive middle market companies. Comparable in middle market direct lending strategy.
Broad incumbents
- Ares Capital: Ares Capital (NASDAQ: ARCC) is the largest U.S. BDC with broad middle market exposure. Larger and more diversified than CSWC but overlapping in first-lien senior secured lending to sponsor-backed companies.
- FS KKR Capital: FS KKR Capital (NYSE: FSK) is a large BDC providing capital across the structure to middle market companies. Larger, broader incumbent with overlapping lower middle market focus.
- Blackstone Private Credit Fund: Blackstone Private Credit Fund (BCRED) is a leading private credit BDC managed by Blackstone Credit. Represents a broader incumbent competitor with significant capital raising and sponsor relationships.
Market position
Strengths4 records
Weaknesses4 records
Competitive moat5 records
Key risks5 records
Key highlights6 records
Customer concentration
Capital Southwest social profiles
Digital presenceCapital Southwest financial estimates
Financial estimateRevenue estimate
Valuation estimate
Capital Southwest leadership team
Management profileNumber of profiles
Profiles7 records
Capital Southwest subsidiaries and ownership
Company hierarchySubsidiaries1 record
Capital Southwest funding detail
Funding detailFunding overview
Funding rounds8 records
Investors1 record
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Capital Southwest M&A and investment
M&A and investmentM&A1 record
Investments11 records
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Capital Southwest
What does Capital Southwest do?
Capital Southwest is an internally managed business development company (BDC) that originates and holds direct debt and equity investments in U.S. lower middle market companies with $3–25 million of EBITDA, providing financing of $5–75 million per transaction. Its core offerings include first lien senior secured floating-rate debt (99% of the portfolio), unitranche debt (including last-out), subordinated debt, and minority equity co-investments, with an approximately $2.0–2.2 billion portfolio across roughly 131 portfolio companies.
Is Capital Southwest a public or private company?
Capital Southwest is a public company. It is classified as public and is currently operating.
When was Capital Southwest founded?
Capital Southwest was founded in 2015. It employs 11 to 50 people.
Where is Capital Southwest based?
Capital Southwest is headquartered in Dallas, United States, in the North America region.
How does Capital Southwest make money?
Three revenue lines are on record. Interest Income from Debt Investments are the primary driver. The others are equity Co-Investments and capital Appreciation.
Who are Capital Southwest's main competitors?
Direct peers on record are Hercules Capital, Trinity Capital, Main Street Capital, Golub Capital BDC, Oaktree Specialty Lending, Sixth Street Specialty Lending and New Mountain Finance. Broad incumbents are Ares Capital, FS KKR Capital and Blackstone Private Credit Fund.
Does Capital Southwest have an API?
No public API is recorded for Capital Southwest.
What industry is Capital Southwest in?
Capital Southwest's product category is Middle Market Direct Lending. Its primary akta.pro industry code is FSANAIAC, BDC / Public Vehicle Venture Debt Providers, with a secondary code of FSANADAI, Middle-Market Lending. Its NAICS code is 5239 and its SIC code is 6159.