Capital Southwest Corporation

CAPITAL SOUTHWEST CORP is an internally managed closed-end, non-diversified investment company regulated as a business development company (BDC) under the Investment Company Act of 1940. All executive officers and employees are directly employed by CSWC, meaning the company does not pay external investment advisory fees but directly covers the operating costs of its investment and portfolio management professionals. Since September 30, 2015, CSWC has focused on a credit-focused investment strategy. The company specializes in providing customized financing to lower middle market (LMM) companies across various industry segments, primarily located in the United States. CSWC primarily invests in first lien debt securities, and also invests in preferred stock and common stock, either alongside its debt investments or through warrants. Its common stock trades on The Nasdaq Global Select Market under the ticker symbol "CSWC." As a BDC, CSWC must invest at least 70% of its assets in "qualifying assets," which include securities of private or thinly traded public U.S. companies, cash, cash equivalents, U.S. government securities, and high-quality debt investments maturing in one year or less. Effective April 25, 2019, CSWC is permitted to borrow money such that its asset coverage, as defined in the 1940 Act, is at least 150% after borrowing. The Board of Directors has also approved a resolution limiting the issuance of senior securities so that the asset coverage ratio, considering any such issuance, would not be less than 166% at any time after the effective date. CSWC has elected, and intends to qualify annually, to be treated as a regulated investment company (RIC) for U.S. federal income tax purposes under subchapter M of the U.S. Internal Revenue Code of 1986.