Capital Southwest ( (CSWC) ) has released its Q1 earnings. Here is a breakdown of the information Capital Southwest presented to its investors.
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Capital Southwest Corporation is a Dallas-based, internally managed business development company that specializes in providing flexible financing solutions to support the acquisition and growth of middle market businesses. The company operates primarily in the financial services sector, with a focus on middle market lending.
In its latest earnings report for the first fiscal quarter ended June 30, 2025, Capital Southwest announced a total investment portfolio of $1.8 billion, with a credit portfolio of $1.6 billion and an equity portfolio of $166.2 million. The company reported pre-tax net investment income of $32.7 million, or $0.61 per weighted average common share, and estimated undistributed taxable income of $1.00 per share.
Key financial highlights include the origination of $115.2 million in new commitments, consisting of $113.4 million in first lien senior secured debt and $1.8 million in equity investments. The company also paid total dividends of $0.64 per share during the quarter and reported a net realized and unrealized depreciation of $4.9 million. The balance sheet showed cash and cash equivalents of $46.9 million and total net assets of $916.5 million.
Looking ahead, Capital Southwest’s management expressed optimism about increased deal flow and origination activity in the upcoming quarter. The company also announced a shift to monthly dividend payments, which is seen as a shareholder-friendly initiative. Additionally, Capital Southwest continues to efficiently raise equity capital and has increased commitments on its corporate credit facility.
Overall, Capital Southwest remains focused on strengthening its balance sheet and maintaining a conservative approach to underwriting, while actively seeking new investment opportunities to support its growth strategy.