Capital Southwest (CSWC) Investor presentation summary

Company overview and strategy

• Focuses on middle-market lending, supporting acquisitions and growth across the capital structure.

• Operates as an internally managed BDC with RIC tax treatment and investment grade ratings from Moody's and Fitch.

• Manages two SBIC subsidiaries and a joint venture with Trinity Capital, with $2.2B in total assets as of March 31, 2026.

• Investment strategy targets companies with $3M–$25M EBITDA, offering flexible financing and equity co-investments.

• Portfolio is diversified by industry, geography, and end market, with a strong emphasis on first lien debt.

Financial performance and portfolio highlights

• Q4 2026 pre-tax net investment income was $35.2M ($0.59/share), with a regular dividend of $0.58/share and supplemental dividend of $0.06/share.

• Net asset value per share was $16.69 as of March 31, 2026, with investment portfolio fair value at $2.1B.

• Raised $25.5M through the Equity ATM Program at a 38% premium to NAV.

• Originated $157.7M in new investments in Q4, with $57.7M in exits; 12-month IRR on exits was 12.8%.

• Maintains a 0.90x regulatory debt-to-equity ratio and $364M in credit facility availability.

Dividend and value creation track record

• Paid $2.32/share in regular dividends and $4.42/share in special/supplemental dividends since 2015.

• Cumulative value creation of $20.27/share (NAV plus dividends) since launching the credit strategy.

• Regular dividend coverage by pre-tax NII stands at 109% since 2015.

• Estimated undistributed taxable income of $1.07/share as of March 31, 2026.