C

Capital Southwest

Credit-focused BDC financing lower middle-market.

Overview

Capital Southwest is a credit-focused BDC that provides flexible financing to lower middle market companies across the capital structure, filling gaps left by traditional first-lien lenders. It underwrites and funds deals using a mix of unitranche, first lien, second lien, subordinated debt, and equity—often with equity co-investments up to 20%—and can work with a co-investor network for deals in the $5 to $70 million range. The firm differentiates itself through a non-control, team-driven approach and its ability to fund across debt and equity with multiple securities from its Dallas base. Its goal is to deliver tailored, cross-capital-stack financing and build a diversified portfolio to generate attractive risk-adjusted returns for its investors.

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About Capital Southwest

Simplify's Rating
Why Capital Southwest is rated
C+
Rated C on Competitive Edge
Rated B on Growth Potential
Rated C on Differentiation

Industries

Financial Services

Company Size

11-50

Company Stage

IPO

Headquarters

Dallas, TX

Founded

1961

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Simplify's take

What believers are saying

  • Q2 2027 originations hit a record $391 million, expanding the $2.2 billion credit book.
  • Pre-tax net investment income covered the $0.58 regular dividend in November 2026.
  • The September 2026 credit-facility amendment lowered borrowing costs and eliminated maturities until 2029.

What critics are saying

  • Nonaccruals rose to 1.4% in Q2 2027, pressuring income and NAV by December.
  • ATM issuance raised about $67 million in Q2 2027, diluting holders at $24.50.
  • Supplemental dividends depend on undistributed taxable income; any repayment spike can force a cut.

What makes Capital Southwest unique

  • Internally managed BDC, with $2.4 billion portfolio and 99% first-lien exposure on November 2, 2026.
  • Capital Southwest amended its credit facility to $595 million and maturity to September 2031.
  • Desert Star with Trinity Capital targets technology lending, while preserving debt-only discipline.

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Funding

Total Funding

$84.6M

Above

Industry Average

Funded Over

0 Rounds

Stock Price

Company News

Yahoo Finance
Nov 4th, 2026
Capital Southwest revenue rises 18% to $67.16M, but EPS falls 26% on dilution worries

Capital Southwest shares eased about 1% to $23.25 after its second-quarter 2027 results. The business development company reported pretax net investment income of $37.2 million, or $0.58 per share, and paid a regular dividend of $0.58 plus a $0.06 supplemental. Revenue rose about 18% to $67.16 million from $56.95 million a year earlier. Net income excluding extra items fell about 15% to $21.44 million, and basic earnings per share dropped to $0.34 from $0.46. Origination hit a record $391 million, and 99% of credit exposure is in first lien positions. Nonaccruals stood at 1.4%. Critics point to dilution: the company raised about $67 million through its at-the-market share program in the quarter.

Yahoo Finance
Nov 3rd, 2026
Capital Southwest posts $21.4M Q2 net income, with $67.2M revenue beating forecasts

Capital Southwest Corp. (CSWC) reported fiscal second-quarter net income of $21.4 million on Monday, or 33 cents per share. The Dallas-based business development company posted adjusted earnings of 56 cents per share, matching the average estimate of three analysts surveyed by Zacks Investment Research. Revenue came to $67.2 million, beating the analysts' forecast of $65.3 million.

Yahoo Finance
Nov 2nd, 2026
Capital Southwest revenue beats estimates at $67.16M, up 17.9%, but EPS misses by 36%

Capital Southwest (NASDAQ:CSWC) beat revenue expectations in the quarter ended in calendar Q3 2026 (fiscal Q2 2027), but missed on earnings. Revenue rose 17.9% year on year to $67.16 million, 2.3% above analysts' consensus of $65.64 million. Earnings per share under GAAP were $0.33, 36% below the $0.52 analysts expected. Pre-tax profit was $37.17 million, a 55.3% margin. The business development company's revenue has grown 26.9% annually over the past five years and 12.6% annually over the past two. Shares were flat at $23.35 after the results, giving a market capitalisation of $1.48 billion.

FinancialContent
Oct 22nd, 2026
Stone-Goff Partners backs Denver environmental services firm Quandary Consultants

Private equity firm Stone-Goff Partners has invested in Quandary Consultants, a Denver-based provider of regulatory and compliance-driven environmental services for critical infrastructure operators. The deal's financial terms were not disclosed. Founded in 2016 by Matt Harrison and Asher Weinberg, Quandary offers air quality and monitoring, environmental, and natural resources services. It serves more than 100 clients in the Mountain West, including oil and gas, power generation, renewables, and data centre operators. The investment will fund new capabilities, talent, technology, and acquisitions, and help Quandary expand into new geographies. Capital Southwest provided debt financing. Citizens JMP Securities advised Quandary.

MarketBeat
Aug 28th, 2026
Capital Southwest Corporation plans monthly dividend of $0.19 (NASDAQ:CSWC).

Capital Southwest Corporation plans monthly dividend of $0.19 (NASDAQ:CSWC). August 28, 2026 Key points. * Capital Southwest declared a monthly dividend of $0.1934 per share, payable October 30 to shareholders of record October 15. The dividend implies an annualized yield of approximately 9.1%, with the ex-dividend date also set for October 15. * The dividend is supported by earnings but has limited coverage, with a current payout ratio of 99.1% and an expected future payout ratio of 97.9% based on projected annual earnings of $2.37 per share. * Capital Southwest reported quarterly EPS of $0.58, exceeding analyst expectations of $0.56, while analysts maintained a generally positive outlook: six rated the stock Buy and three rated it Hold, producing a consensus "Moderate Buy" rating. * MarketBeat previews the top five stocks to own by September 1st. Capital Southwest Corporation (NASDAQ:CSWC - Get Free Report) announced a monthly dividend on Thursday, August 27th. Shareholders of record on Thursday, October 15th will be given a dividend of 0.1934 per share by the asset manager on Friday, October 30th. This represents a c) dividend on an annualized basis and a yield of 9.1%. The ex-dividend date is Thursday, October 15th. Capital Southwest has increased its dividend payment by an average of 0.0%per year over the last three years and has increased its dividend every year for the last 2 years. Capital Southwest has a dividend payout ratio of 99.1% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings decline. Research analysts expect Capital Southwest to earn $2.37 per share next year, which means the company should continue to be able to cover its $2.32 annual dividend with an expected future payout ratio of 97.9%. Capital Southwest stock up 0.6%. Shares of NASDAQ CSWC opened at $25.40 on Friday. The stock has a market capitalization of $1.62 billion, a PE ratio of 14.03 and a beta of 0.69. The company has a current ratio of 0.17, a quick ratio of 0.17 and a debt-to-equity ratio of 0.62. Capital Southwest has a 12-month low of $19.37 and a 12-month high of $25.48. The stock's fifty day simple moving average is $24.11 and its two-hundred day simple moving average is $23.35. Capital Southwest (NASDAQ:CSWC - Get Free Report) last issued its quarterly earnings data on Monday, August 3rd. The asset manager reported $0.58 earnings per share for the quarter, topping analysts' consensus estimates of $0.56 by $0.02. Capital Southwest had a return on equity of 13.88% and a net margin of 46.68%.The firm had revenue of $61.05 million during the quarter, compared to analysts' expectations of $61.22 million. During the same period in the prior year, the business posted $0.61 EPS. As a group, analysts expect that Capital Southwest will post 2.27 EPS for the current fiscal year. Analyst upgrades and downgrades. A number of analysts have recently weighed in on the stock. Citizens Jmp raised their price target on shares of Capital Southwest from $25.00 to $26.00 and gave the company a "market outperform" rating in a report on Wednesday, August 5th. Citigroup reissued a "market outperform" rating on shares of Capital Southwest in a research report on Wednesday, August 5th. B. Riley Financial raised their target price on shares of Capital Southwest from $24.50 to $25.50 and gave the company a "buy" rating in a research note on Wednesday, August 5th. Finally, Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Capital Southwest in a research report on Thursday, June 18th. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $23.60. Discover more Company Earnings About Capital Southwest. Capital Southwest NASDAQ: CSWC is a publicly traded investment firm structured as a business development company (BDC) that provides customized financing solutions to middle-market companies across the United States. The firm offers a spectrum of debt and equity capital, including senior secured loans, mezzanine debt, and both preferred and common equity investments. By partnering with corporate management teams, Capital Southwest seeks to support growth initiatives, recapitalizations, acquisitions, and ownership transitions. Founded in 1961 and headquartered in Dallas, Texas, Capital Southwest has cultivated a track record of long-term partnerships with privately held businesses and select public companies. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. 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