Capital Southwest Corporation

What is Capital Southwest Corporation?

Capital Southwest Corporation, founded in 1961, is a publicly owned business development company with significant experience in providing flexible capital solutions. They help lower middle market businesses to flourish by supporting growth financing for existing businesses, management-led buyouts, acquisition financings, and minority recapitalizations.

Capital Southwest is an active lower middle market direct lender, primarily focused on originating lending opportunities up to $75 million, but remaining open and flexible to other capital structures, including club deals led by other lenders. They target companies with a near-profitable to $3 million EBITDA, with a particular investment size range from $5 million to $20 million in equity capital.

Occasionally, they partner with other investors for engaging in larger transactions.

Their portfolio, since 2015, has grown through investments of over $2.5 billion across more than 150 companies. Their industry focus spans diverse areas including Software, IT, Media, Education, Business Solutions, FinTech, Hardware, Energy, CleanTech, A.I., Food & Beverage, Logistics, Material Science, Medical Devices, DeepTech, Healthcare, Mobile, and Consumer.

Specializing in Acquisition funding, they are keen on sectors such as Energy Services & Products, Industrial Technologies, and Specialty Chemicals & Products while showing exceptional interest in building products, healthcare services, and technology-enabled business services. The firm emphasizes long-term relationships with company management teams, partners, and shareholders to create successful outcomes.