Capital Southwest Corporation

Capital Southwest Corporation is an internally managed, credit-focused business development company based in Dallas, Texas. The firm specializes in providing flexible capital solutions to lower middle market companies, focusing on investments ranging from $5 million to $50 million. Their portfolio spans various industries, including manufacturing, electrical, construction, industrial, oil field, automotive, energy infrastructure, and information technology. The company has a history of supporting the acquisition and growth of middle market businesses through investments across the capital structure, including first lien, second lien, and non-control equity co-investments.

The firm's investment approach emphasizes long-term, patient capital, allowing portfolio companies to grow at their desired pace without the pressure to exit within a typical five to seven-year timeframe. This strategy has led to a significant portion of their active investments being held continuously for over 20 years. Capital Southwest's team comprises senior-level investors with decades of experience, enabling them to make thoughtful and timely decisions based on thorough due diligence. Their focus on preserving capital and fostering long-term shareholder returns has established them as a reliable partner for lower middle market businesses seeking growth capital.

Capital Southwest's commitment to building long-term relationships is evident in their extensive network of deal sources, including financial and independent sponsors, founders, independently owned businesses, investment banks, and business brokers. This network facilitates the sourcing and leading of direct lending deals up to $75 million, while remaining open to partnerships with other lenders. Their consistent track record of delivering attractive risk-adjusted returns underscores the effectiveness of their investment philosophy and approach.