Capital Southwest Corporation (Nasdaq: CSWC) reported financial results for the second fiscal quarter ended September 30, 2026, highlighting a record origination quarter and updates to its capital structure. The company announced total investment income of $67.2 million for the quarter, compared to $61.0 million in the prior quarter.
Portfolio and Investment Highlights
The company’s total investment portfolio at fair value was $2.4 billion, consisting of a $2.2 billion credit portfolio and a $192.3 million equity portfolio. During the quarter, Capital Southwest originated $391.0 million in new commitments. This included $327.1 million invested in 14 new portfolio companies and $63.9 million in add-on commitments to 16 existing companies. The weighted average yield on debt investments was 10.9%.
Capital Southwest also committed $25.0 million to a new joint venture, Desert Star, which focuses on technology lending in partnership with Trinity Capital. The company reported pre-tax net investment income of $37.2 million, or $0.58 per weighted average common share. The company paid a regular quarterly dividend of $0.58 per share and a supplemental dividend of $0.06 per share during the quarter.
Balance Sheet and Capital Resources
As of September 30, 2026, the company’s net asset value (NAV) per share was $16.64. The company had approximately $48.0 million in unrestricted cash and money market balances, along with $599.2 million of unused capacity under its Corporate Credit Facility and SPV Credit Facility.
In connection with its capital strategy, the company successfully raised a new $350 million unsecured bond at 6.75% to pay down its Corporate Credit Facility. The company also raised approximately $67.0 million through its Equity ATM Program during the quarter. Additionally, the company received approval to increase the leverage commitment for Capital Southwest SBIC II, LP from $175 million to $250 million.
