Capital Southwest’s Q4 Investment Portfolio Hits $2.1B with 10.8% Yield
Capital Southwest’s investment portfolio grew to $2.1B in Q4, delivering $35.2M pre-tax net investment income ($0.59 per share) on a 10.8% debt yield and paid $0.64 in total dividends. For fiscal 2026, portfolio value rose 17% to $2.1B with investment income up 13.5% to $232.1M.
1. Q4 Financial Highlights
During the quarter ended March 31, 2026, Capital Southwest held a $2.1 billion total investment portfolio, including $1.9 billion in 99% first-lien senior secured debt yielding 10.8%. The company generated $35.2 million in pre-tax net investment income ($0.59 per share), paid $0.58 in regular dividends plus a $0.06 supplemental dividend, and reported a NAV of $16.69.
2. Fiscal Year 2026 Results
For the year ended March 31, 2026, total portfolio value increased by $312.1 million (17%) to $2.1 billion, driven by $232.1 million in investment income, a 13.5% rise year-over-year. Annual dividends totaled $2.56 per share and estimated undistributed taxable income stood at $1.07 per share at fiscal year end.
3. Investment Activity and Risk Profile
In Q4, the firm originated $157.7 million of new commitments across five new and 12 existing portfolio companies, receiving $57.7 million in prepayments and exits at a 14.2% weighted IRR. Non-accrual investments remained low at $22.7 million, or 1.1% of total assets.
4. Capitalization and Leverage Initiatives
Capital Southwest raised approximately $26 million through its Equity ATM program and expanded its SBIC II leverage commitment by $50 million. Subsequent to quarter end, its CapTrin joint venture secured a $150 million revolving credit facility with an accordion feature up to $350 million.