Investment Criteria
Typical financing size
$5-75m
Target hold size
$5-45m
Minimum company EBITDA
$3m
Typical company EBITDA
$3-25m
Flexible capital for the lower middle market.
Primary investment criteria
We provide flexible capital that fills financing needs that traditional first-lien senior lenders are unwilling to meet. In particular, CSWC is well positioned to finance lower middle market businesses with $3 - $25 million of EBITDA. CSWC has the ability to start small and scale with our partners.
Investment Structures
Unitranche debt (including last-out)
First lien debt
Subordinated debt
Flexibility to invest across multiple securities in a single transaction
Situations
New platform acquisitions
Dividend recapitalizations
Refinancings
Bolt-on acquisitions
Growth financings
Clients
Financial sponsors
Independent sponsors
Founder and independently-owned businesses
Investment banks and business brokers
Company Characteristics
Industry agnostic
Strong track record or performance
Stable customer and supplier performance
Sustainable market positions and margin profiles
Strong free cash flow conversion
Equity Investments
Equity co-investments alongside debt investments
Non-control investments only
Where?
Primarily in North America
Committee Process
Members of the investment committee are located in Dallas
Capital Southwest deal leaders have day-to-day access to Senior Management and can “speak for the firm” and execute with confidence
Recent Investments
