Capital Southwest Posts Preliminary NAV of $16.62 to $16.67

The Tip Desk · October 15, 2026 · 3 min read

The Dallas BDC put second-quarter 2027 pre-tax net investment income at $0.58 to $0.59 a share, with finalized results due Nov. 2.

Capital Southwest Corporation (CSWC), an internally managed business development company that lends to middle-market businesses, said preliminary pre-tax net investment income for the quarter ended September 30, 2026, would be $0.58 to $0.59 a share, compared with $0.57 a share reported for the quarter ended June 30, 2026.

The Dallas-based BDC also estimated net investment income for the same period at $0.56 to $0.57 a share. That range sits below the $0.57 to $0.58 a share preliminary net investment income it had issued for the June quarter.

Net asset value per share as of September 30, 2026, is estimated at $16.62 to $16.67, versus $16.61 reported as of June 30, 2026.

The company said it would release finalized second-quarter 2027 results on November 2, 2026, after the market closes, and schedule a webcast for November 3.

The preliminary figures are based on management’s determinations and current expectations as of October 15, 2026, and remain subject to quarter-end closing and fair-value procedures. Capital Southwest cautioned that actual results could differ materially from the estimates, including after the determination of the fair value of its portfolio investments.

As of June 30, 2026, the company had approximately $2.2 billion in investments at fair value. In that June quarter, the credit portfolio stood at $2.0 billion at fair value, with 99% first-lien senior secured debt and a weighted average yield on debt investments of 10.9%. New committed credit investments during the quarter were $216.3 million. Current non-accruals had a fair value of $23.4 million, or 1.1% of the total investment portfolio, and a cost basis of $65.7 million, or 2.9% of the portfolio.

The equity portfolio, excluding the unconsolidated joint venture CapTrin Partners, LLC, was $181.6 million at fair value, with $5.9 million in new equity co-investments. Capital Southwest’s equity investment in CapTrin was $20.8 million at fair value; CapTrin’s portfolio was $97.8 million.

Pre-tax net investment income for the June quarter was $35.0 million, or $0.57 a share. The company paid total dividends of $0.64 a share for that quarter, including a $0.58 regular quarterly dividend and a $0.06 supplemental dividend in June 2026. Estimated undistributed taxable income was $0.87 a share as of June 30, 2026. LTM operating leverage was 1.4%.

Net realized and unrealized depreciation for the June quarter was $10.9 million, or 0.5% of total investments at fair value, including $6.4 million related to the credit portfolio, $3.2 million related to the equity portfolio, $0.2 million related to CapTrin, and an $1.1 million net realized and unrealized income tax provision. Cash and cash equivalents were $58.5 million. Total net assets were $1,058.5 million.

President and Chief Executive Officer Michael Sarner said the June quarter was an extremely active period, with approximately $222 million of originations across 11 new and 16 existing portfolio companies.

Capital Southwest described itself as a middle-market lending firm supporting acquisitions and growth with $5 million to $50 million investments across the capital structure, including first lien, second lien and non-control equity co-investments. The company said it has the flexibility to invest to support portfolio companies over long periods of time.

The October 15 release listed risks that could cause actual results to differ from the preliminary estimates, including changes in markets, the interest-rate environment, regulation, tax treatment, the ability to operate its SBIC subsidiaries, tariffs and trade policy, an economic downturn, supply-chain constraints, inflation and geopolitical conditions.

The company said it does not undertake an obligation to update forward-looking statements except as required by federal securities laws. No information on the November 3 webcast is incorporated by reference into the press release.

Finalized second-quarter 2027 results, including the fair-value determination of the investment portfolio, are scheduled for November 2, 2026.