CSWC Stock Discussion

Capital Southwest Corporation Description

Capital Southwest Corporation is a public investment firm specializing in venture capital and private equity investments in small and medium sized businesses. It does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing. The firm provides equity financing for expansion, growth capital, acquisition financings, management buyouts, and minority recapitalizations. It also provides capital to early stage, mid venture, late venture, industry consolidation, middle market, and mature companies. The firm invests in diverse industries that includes value added distribution; niche manufacturing; technology enabled business service; aerospace; healthcare services; building products; specialty chemical and products including adhesives, coatings and sealants, catalysts and absorbents, cosmeceuticals, fine chemicals, flavors and fragrances, performance lubricants, polymers, and plastics and composites; industrial technology including Automation and process controls, handling and packaging equipment, industrial filtration and fluid handling, Measurement, monitoring and testing, Professional tools, and sensors and instrumentation; and energy services and products including Drilling and completion chemicals, consumable products, equipment and tool rental, and differentiated products and services. Within aerospace, the firm considers avionics, airframe systems, components, materials, power systems, and production areas. The firm invests in platform companies across the United States with a focus on the Southwest, Southeast, Midwest, and Mountain region. It seeks to invest between $2 million and $20 million and can co-invest up to $40 million. The firm prefers to invest in companies with revenues approaching above $10 million and enterprise values between $5 million and $100 million and an EBITDA between -$1 million and $20 million. It prefers to take long term position of 20 years in its portfolio companies and also acquires minority ownership stakes between 20 percent and 45 percent. The firm leaves the control with the current business owner. It also provides follow-on financing and seeks a Board seat in the portfolio companies. Capital Southwest Corporation was founded in 1961 and is based in Dallas, Texas.

Sector: Financial Services
Industry: Asset Management
Keywords: Private Equity Aerospace Chemical Plastic Venture Capital Healthcare Service Gas Exploration Adhesives Oil And Gas Exploration Energy Services Polymers Power Systems Entrepreneurship Real Estate Development Sealant Avionics Process Control Consumable Products Fine Chemical Project Finance Catalysts Industrial Technology Niche Manufacturing Completion Chemicals