Capital Southwest Corp has recently released its 10-Q report, detailing its business operations and financial performance. The company, founded in 1961 and based in Dallas, Texas, is a business development company specializing in credit and private equity and venture capital investments in lower middle market companies. It focuses on various investment segments, including industrial manufacturing and services, value-added distribution, healthcare products and services, business services, specialty chemicals, food and beverage, tech-enabled services, SaaS models, energy services and products, industrial technologies, and specialty chemicals and products.
In the 10-Q report, the company's management's discussion and analysis of financial condition and results of operations highlighted its investment strategy, which involves providing customized debt and equity financing to lower middle market (LMM) companies in the United States. The report also emphasized the company's critical accounting policies and use of estimates, particularly in the valuation of investments and revenue recognition.
As of December 31, 2025, Capital Southwest Corp's investment portfolio was valued at $2,013.2 million, representing an increase from $1,785.3 million as of March 31, 2025. The company held investments in 132 portfolio companies, with 90.9% of the portfolio at fair value being debt investments and 9.1% being equity investments. The weighted average annual effective yield on debt investments was 11.3%, and the weighted average EBITDA of the portfolio companies was $16,065. The report also detailed the composition of the company's debt investments, with 95.0% bearing a floating rate and 5.0% bearing a fixed rate.
Today the company's shares have moved -0.17% to a price of $23.68. For more information, read the company's full 10-Q submission here.
