Capital Southwest Corporation (CSWC)
CSWC · NASDAQ
Dallas, TX | NASDAQ:CSWC
Overview
Capital Southwest Corporation is one of the longest-operating BDCs, with roots dating back to 1961. CSWC provides senior secured loans, mezzanine debt, and equity co-investments to lower middle-market companies. The company focuses on businesses with EBITDA between $3 million and $25 million. CSWC is known for its internally managed structure, which aligns management interests with shareholders and typically results in lower expense ratios.
Key Metrics
| Metric | Value |
|---|---|
| 1-Year Total Return | 13.5% |
| 3-Year Total Return | 36.8% |
| 5-Year Total Return | 54.5% |
| Expense Ratio | 6.5% |
| Leverage Ratio | 1.25x |
| Portfolio Companies | 70 |
| Total Assets | $1.8B |
Investment Strategy
Capital Southwest Corporation focuses on senior secured loans, mezzanine debt, equity co-investments in the manufacturing, industrial, business services, healthcare sectors. The company targets lower middle-market companies and maintains a portfolio of 70 investments totaling $1.8B in assets.
Management
CEO: Henri J. O'Brea | Employees: 28
Suitability
CSWC is suitable for income-focused investors seeking quarterly dividend income with a 8.5% yield. The BDC's focus on senior secured loans provides portfolio characteristics. Investors should consider their risk tolerance and investment objectives before investing.