Clear Street Upgrades Capital Southwest (CSWC) to Buy After Strong Q3 Results

Core Viewpoint - Clear Street upgraded Capital Southwest Corporation (CSWC) from Hold to Buy, maintaining a price target of $22, following strong Q3 results that highlight the company's resilient earnings capacity and disciplined underwriting approach [1][2]. Financial Performance - In Q3 2025, Capital Southwest reported $44.8 million in gains from equity exits, leading to an increase in undistributed taxable income per share from $0.64 in September 2024 to $1.13 [3]. - The board approved regular monthly dividends totaling $0.58 per share for the October–December period, along with a supplemental dividend of $0.06 per share, resulting in total dividends for the quarter of $0.64 [3]. Capital Raising - During the quarter, Capital Southwest raised approximately $40 million in equity through its at-the-market program at an average share price of $22.81 [4]. Business Model - Capital Southwest is an internally managed business development company that provides tailored debt and equity financing solutions to U.S. middle-market firms [4].