Capital Southwest Corporation Announces Formation and Launch of First Out Senior Loan Joint Venture

Core Viewpoint - Capital Southwest Corporation has formed a joint venture with another private credit asset manager to create an off-balance sheet private fund focused on first out senior secured debt opportunities in the lower middle market [1][2]. Group 1: Joint Venture Details - The joint venture will be equally owned by Capital Southwest and its partner, with each holding a 50% equity interest [2]. - Investment and operational decisions will be made by a board of managers with equal representation from both partners [2]. Group 2: Strategic Implications - The joint venture is expected to enhance Capital Southwest's competitiveness in securing high-quality lower middle market opportunities by providing more flexible capital solutions [3]. - It will allow the company to allocate portions of larger transactions to the joint venture, maintaining portfolio granularity while broadening the range of platform companies pursued [3]. Group 3: Company Overview - Capital Southwest Corporation is a Dallas-based business development company with approximately $1.9 billion in investments at fair value as of September 30, 2025 [4]. - The company focuses on supporting the acquisition and growth of middle market businesses with investments ranging from $5 million to $50 million across various capital structures [4].