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Capital Southwest Corporation is a Texas-based business development company focusing on debt and equity financing for lower middle market companies.
Capital Southwest Corporation (CSWC) operates as a business development company (BDC) focused on providing customized debt and equity financing primarily to lower middle market (LMM) companies in the United States. The firm engages in a credit-focused investment strategy that emphasizes senior debt securities while also participating in equity investments. Its investment approach aims to generate attractive risk-adjusted returns through income generated from debt and potential capital appreciation from equity stakes.
As an internally managed BDC, CSWC does not incur external investment advisory fees, allowing it to maintain a cost-effective operating structure. The corporation primarily targets established companies with annual earnings between $3.0 million and $25.0 million, filling the financing gap for LMM businesses that might struggle to access traditional funding sources. Through its associated subsidiaries, it can also employ SBA guaranteed debentures to extend its leverage capabilities, allowing for a flexible approach to financing that suits the unique needs of the companies it supports.
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