Key Points – Capital Southwest posted a strong fiscal 2026, growing its investment portfolio 17% to $2.1 billion and boosting investment income 14% to $232 million.
Net asset value per share was essentially flat year over year at $16.69, and the company said it delivered a 40% return on equity. – Credit quality remained solid, with non-accruals falling to 1.1% of fair value and 99% of the credit portfolio still in first-lien senior secured debt at quarter-end
Management also said watch-list performance improved and several troubled companies made meaningful progress. – The company continued to support its dividend program with strong liquidity and capital raising, ending the quarter with about $394 million in liquidity and leverage at 0.9x, within its target range. Capital Southwest maintained its regular and supplemental dividends and said it remains confident in future supplemental payouts, supported by UTI and equity gains. Capital Southwest (NASDAQ:CSWC) reported what management described as an “outstanding” fiscal 2026, highlighting portfolio growth, stable net asset value, strong dividend coverage and continued diversification of funding sources despite a volatile market backdrop.
President and Chief Executive Officer Michael Sarner said the business development company grew its investment portfolio by approximately $300 million, or 17%, during the fiscal year, from $1.8 billion to $2.1 billion. New committed investment originations totaled $762 million for the year, while investment income increased $28 million, or 14%, to $232 million from $204 million. Sarner said net asset value per share ended the year at $16.69, essentially unchanged from $16.70 a year earlier.