Capital Southwest Reports Strong Q2 Financial Results

Capital Southwest ( (CSWC) ) has realeased its Q2 earnings. Here is a breakdown of the information Capital Southwest presented to its investors.

Capital Southwest Corporation, a Dallas-based internally managed business development company, specializes in providing flexible financing solutions for middle market businesses. The company reported its financial results for the second fiscal quarter ending September 30, 2024, highlighting a robust portfolio performance and continued dividend payouts.

In the recent quarter, Capital Southwest achieved a pre-tax net investment income of $30.0 million, equating to $0.64 per share. The firm also declared a regular dividend of $0.58 per share and a supplemental dividend of $0.05 per share for the upcoming quarter. The company’s investment portfolio totals $1.5 billion, with a significant portion in 1st lien senior secured debt and a weighted average yield on debt investments of 12.9%.

Key financial highlights include $88 million in new committed credit investments and a $1.8 million increase in new equity co-investments. The company’s net realized and unrealized depreciation was $8.5 million, and its net asset value per share stood at $16.59. With $47.2 million in cash and equivalents, Capital Southwest also maintains substantial unused capacity under its credit facilities.

Looking forward, Capital Southwest anticipates strong net portfolio growth due to delayed deal closings and a robust backlog of deals in diligence. The company plans to continue its dividend distributions, as indicated by the recent declarations, and remains committed to supporting the growth of its portfolio companies.