Capital Southwest
Investment ManagementTexas, United States51-200 Employees
Capital Southwest is an internally managed, credit-focused business development company (BDC) headquartered in Dallas, Texas, with all employees based there and a workforce of 51-200 people. It functions as an active lender to lower middle market companies across the capital structure, providing flexible financing to meet needs not addressed by traditional first lien senior lenders, typically for businesses with $3 to $12 million of EBITDA. The firm employs investment structures including unitranche debt, first and second lien debt, subordinated debt, and both preferred and common equity, with the ability to co-invest up to 20% of total checks and to invest as a non-control investor. Investment criteria include financings generally ranging from $5 to $70 million (with $5 to $45 million per deal), a minimum EBITDA of $3 million, a US-based management team with a proven track record and continued ownership, and an established market position with positive cash flow. Recent developments include a March 16, 2026 joint venture with Trinity Capital to pursue first-out senior secured debt opportunities in the lower middle market, and leadership updates such as the January 2026 hiring of Ryan Mullins as Managing Director and the December 2025 promotion of Grant Eason to Managing Director.