CAPITAL SOUTHWEST Business Summary

Capital Southwest Corp (CSWC) operates as an internally managed business development company (BDC) specializing in providing customized financing solutions to lower middle-market companies. The firm generates revenue primarily through interest income from its credit portfolio, which is heavily weighted toward first-lien senior secured debt, and supplements this with dividend income and capital gains from its equity co-investment segment. By maintaining an internal management structure, CSWC avoids the external management fees typical of the BDC industry, allowing it to pass a higher percentage of net investment income to shareholders through regular and supplemental dividends. The company focuses on businesses with EBITDA between $5 million and $50 million, positioning itself as a flexible capital partner for acquisitions, recapitalizations, and growth initiatives. Its primary competitors include Ares Capital (ARCC), Main Street Capital (MAIN), and Blackstone Secured Lending Fund (BXSL); relative to these peers, CSWC distinguishes itself through its specific focus on the lower middle market and its competitive cost structure as an internally managed entity. Leadership is currently headed by Michael S. Sarner, who was appointed President and Chief Executive Officer in February 2025 after serving as the company’s CFO since 2015. Sarner’s tenure has been instrumental in scaling the firm’s credit platform and maintaining a disciplined underwriting culture. He is supported by Chris Rehberger, who was promoted to Chief Financial Officer, Treasurer, and Secretary in 2025, and Joshua S. Weinstein, the Senior Managing Director and Chief Investment Officer. The Board of Directors is led by Chairman David R. Brooks, who brings extensive experience from the banking sector, including his role as Chairman and CEO of Independent Bank Group. Notable institutional backing includes significant positions held by Moab Capital Partners LLC and Van Eck Associates Corp, reflecting strong investor confidence in the firm’s long-term credit strategy and dividend sustainability.