Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): May 14, 2024

CAPITAL SOUTHWEST CORPORATION

(Exact Name Of Registrant As Specified In Charter)



Texas	814-00061	75-1072796
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

8333 Douglas Avenue, Suite 1100

Dallas, Texas 75225

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (214) 238-5700

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):



			☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
			☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
			☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
			☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $0.25 par value per share	CSWC	The Nasdaq Global Select Market
7.75% Notes due 2028	CSWCZ	The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).



Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On May 14, 2024, Capital Southwest Corporation (the “Company”) issued a press release, a copy of which has been furnished as Exhibit 99.1 hereto.

The information furnished in this Current Report on Form 8-K under Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), except as shall be expressly set forth by reference in a future filing.

Item 7.01 Regulation FD Disclosure.

The Company expects to hold a conference call with analysts and investors on May 15, 2024. A copy of the investor presentation slides to be used by the Company on such conference call is furnished as Exhibit 99.2 to this Form 8-K and incorporated herein by reference.

The information set forth under this Item 7.01, including Exhibit 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference into any filing under the Securities Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits



Exhibit No.						Description
99.1						Press release issued by Capital Southwest Corporation on May 14, 2024
99.2						Investor presentation slides
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: May 14, 2024



			By:			/s/ Michael S. Sarner
						Name: Michael S. Sarner
						Title: Chief Financial Officer

Exhibit 99.1


						8333 Douglas Avenue, Suite 1100 Dallas, Texas 75225 T 214.238.5700 F 214.238.5701

Capital Southwest Announces Financial Results for Fourth Fiscal Quarter and Fiscal Year Ended March 31, 2024 and Announces Total Dividends of $0.63 per share for the Quarter Ending June 30, 2024

CSWC Reports Pre-Tax Net Investment Income of $0.68 Per Share for Quarter Ended March 31, 2024

Dallas, Texas – May 14, 2024 – Capital Southwest Corporation (“Capital Southwest,” “CSWC” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced its financial results for the fourth fiscal quarter and fiscal year ended March 31, 2024.

Fourth Quarter Fiscal Year 2024 Financial Highlights

•Total Investment Portfolio: $1.5 billion

◦Credit Portfolio of $1.3 billion:

▪97% 1st Lien Senior Secured Debt

▪$154.6 million in new committed credit investments during the quarter

▪Weighted Average Yield on Debt Investments: 13.3%

▪Current non-accruals with a fair value of $33.8 million, representing 2.3% of the total investment portfolio

◦Equity Portfolio of $132.0 million

▪$2.9 million in new equity co-investments during the quarter

•Pre-Tax Net Investment Income: $29.8 million, or $0.68 per weighted average share outstanding

•Dividends: Paid $0.57 per share Regular Dividend and $0.06 per share Supplemental Dividend

◦121% LTM Pre-Tax NII Regular Dividend Coverage

◦Total Dividends for the quarter ended March 31, 2024 of $0.63 per share

•Net Realized and Unrealized Depreciation: $15.9 million, or 1.1% of total investments at fair value

◦$1.0 million of net depreciation related to the equity portfolio

◦$15.6 million of net depreciation related to the credit portfolio

◦$0.7 million of net appreciation related to I-45 SLF LLC

▪During the quarter ended March 31, 2024, the board of managers of I-45 SLF LLC ("I-45 SLF") approved the dissolution and liquidation of I-45 SLF and distributed all of the assets of I-45 to its members

•Balance Sheet:

◦Cash and Cash Equivalents: $32.3 million

◦Total Net Assets: $755.7 million

◦Net Asset Value (“NAV”) per Share: $16.77

Fiscal Year 2024 Financial Highlights

•Total Investment Portfolio: Increased by $270.2 million in total fair value, from $1.2 billion to $1.5 billion, representing 22.4% growth during the year

◦Credit Portfolio increased by $307.0 million, representing 30% growth during the year

•Operating Leverage: Improved to 1.7% as of March 31, 2024 from 1.9% as of March 31, 2023

•Pre-Tax Net Investment Income: $2.72 per weighted average diluted share compared to $2.30 per weighted average diluted share in the prior fiscal year, representing 18% growth year over year

•Dividends: Declared and Paid Total Dividends of $2.47 per share

◦$2.24 per share in regular dividends, an increase of 10% compared to the prior year

◦$0.23 per share in supplemental dividends

◦Estimated undistributed taxable income ("UTI") balance at the end of the fiscal year ended March 31, 2024 was $0.64 per share

In commenting on the Company’s results, Bowen Diehl, President and Chief Executive Officer, stated, “The March quarter was another strong quarter for Capital Southwest, with $158 million of originations. Our portfolio continued to perform well, producing $0.68 of pre-tax net investment income for the quarter, which more than earned both our $0.57 per share regular dividend and our $0.06 per share supplemental dividend paid for the quarter. On the capitalization front, we further diversified our funding sources by closing on a new $150 million SPV financing credit facility during the quarter. We believe this new SPV credit facility will provide us with significant funding flexibility as we continue to thoughtfully grow our balance sheet. In consideration of the strong performance of our portfolio, the Board of Directors has again declared a regular quarterly dividend of $0.57 per share for the June 30, 2024 quarter. Given the continued excess earnings being generated by our floating rate debt portfolio, our Board of Directors has also declared a supplemental dividend of $0.06 per share for the June 30, 2024 quarter, resulting in total dividends for the June 30, 2024 quarter of $0.63 per share. While future dividend declarations are at the discretion of our Board of Directors, it is our intent to continue to distribute quarterly supplemental dividends for the foreseeable future while base rates remain materially above long-term historical averages and we have a meaningful UTI balance.”

Fourth Quarter Fiscal Year Investment Activities

Originations

During the quarter ended March 31, 2024, the Company originated $157.5 million in new commitments, consisting of investments in six new portfolio companies totaling $126.3 million and add-on commitments in five portfolio companies totaling $31.2 million. New portfolio company investment transactions that closed during the quarter ended March 31, 2024 are summarized as follows:

Revo Brands, Inc., $33.5 million 1st Lien Senior Secured Debt, $7.0 million Revolving Loan: The company is a branded outdoor products company that designs and sells knives, multi-tools, tooling supplies and accessories.

Tru Fragrance & Beauty LLC, $30.5 million 1st Lien Senior Secured Debt, $4.0 million Revolving Loan, $1.0 million Preferred Equity: The company is a brand creator/aggregator and turnkey partner that offers product design and development, global sourcing and logistics, financial modeling, and other strategic solutions to a portfolio of owned/licensed and third-party brands, with a primary focus on the personal fragrance sector.

TMT BHC Buyer, Inc., $10.0 million 1st Lien Senior Secured Debt, $5.0 million Revolving Loan, $5.0 million Delayed Draw Term Loan, $0.5 million Common Equity: The company is the largest Two Men and a Truck franchisee in the United States by revenue.

BP Loenbro Holdings Inc., $9.8 million 1st Lien Senior Secured Debt, $1.1 million Delayed Draw Term Loan, $1.1 million Revolving Loan: The company is a provider of mission critical industrial services for existing and new build data centers and other industrial facilities.

One Group, LLC, $10.0 million 1st Lien Senior Secured Debt, $0.5 million Delayed Draw Term Loan: The company is an operator of 55 Domino's franchises in Alabama, Tennessee, Texas and Mississippi.

Command Group Acquisition, LLC, $6.0 million 1st Lien Senior Secured Debt, $1.3 million Preferred Equity: The company is a contract manufacturer of "single-use" consumable medical products serving the medical device industry.

Prepayments and Exits

During the quarter ended March 31, 2024, the Company received full prepayments on two debt investments totaling $13.7 million.

FM Sylvan, Inc.: Proceeds of $11.8 million, generating an IRR of 18.9%.

JVMC Holdings Corp.: Proceeds of $1.9 million, generating an IRR of 9.9%.

Fourth Fiscal Quarter 2024 Operating Results

For the quarter ended March 31, 2024, Capital Southwest reported total investment income of $46.4 million, compared to $48.6 million in the prior quarter. The decrease in investment income was primarily attributable to a decrease in dividend income due to less distributions received from equity investments.

For the quarter ended March 31, 2024, total operating expenses (excluding interest expense) were $5.2 million, compared to $7.3 million in the prior quarter. The decrease was primarily attributable to a decrease in accrued bonus compensation in the current quarter.

For the quarter ended March 31, 2024, interest expense remained flat at $11.5 million as compared to the prior quarter.

For the quarter ended March 31, 2024, total pre-tax net investment income remained flat at $29.8 million as compared to the prior quarter.

During the quarter ended March 31, 2024, Capital Southwest recorded total net realized and unrealized losses on investments of $15.9 million, compared to $5.4 million of total net realized and unrealized losses in the prior quarter. For the quarter ended March 31, 2024, the total net realized and unrealized losses on investments reflected net realized and unrealized losses on equity investments of $1.0 million and net realized and unrealized losses on debt investments of $15.6 million, offset by net realized and unrealized gains on I-45 SLF of $0.7 million. The net increase in net assets resulting from operations was $13.5 million for the quarter, compared to $23.5 million in the prior quarter.

The Company’s NAV at March 31, 2024 remained flat at $16.77 per share as compared to the prior quarter.

Fiscal Year 2024 Operating Results

For the year ended March 31, 2024, Capital Southwest reported total investment income of $178.1 million, compared to $119.3 million in the prior year. The increase in investment income was primarily attributable to an increase in average debt investments outstanding and an increase in the weighted average yield of debt investments.

For the year ended March 31, 2024, total operating expenses (excluding interest expense) were $24.1 million, compared to $21.4 million in the prior year. The increase in operating expenses (excluding interest expense) during the current year was primarily attributable to an increase in employee compensation, an increase in costs related to the Company's office space and costs incurred for a special meeting of shareholders.

For the year ended March 31, 2024, interest expense was $43.1 million, compared to $28.9 million in the prior year. The increase was primarily attributable to an increase in average debt outstanding and an increase in the weighted average interest rate on total debt.

For the year ended March 31, 2024, total pre-tax net investment income was $110.9 million, compared to $69.0 million in the prior year.

During the year ended March 31, 2024, Capital Southwest recorded total net realized and unrealized losses on investments of $26.3 million, compared to $35.6 million in the prior year. For the year ended March 31, 2024, the total net realized and unrealized losses on investments reflects net realized and unrealized losses on equity of $5.3 million and net realized and unrealized losses on debt of $24.7 million, partially offset by net realized and unrealized gains on I-45 SLF of $3.7 million. The net increase in net assets resulting from operations was $83.4 million, compared to $33.1 million in the prior year.

The Company's NAV at March 31, 2024 was $16.77, as compared to $16.37 at March 31, 2023. The increase in NAV per share from the prior year is primarily due to pre-tax net investment income in excess of dividends paid, as well as the issuance of common stock at a premium to NAV per share through the Equity ATM Program (as described below), partially offset by net realized and unrealized losses on investments.

Liquidity and Capital Resources

At March 31, 2024, Capital Southwest had approximately $32.3 million in unrestricted cash and money market balances, $265.0 million of total debt outstanding on the Corporate Credit Facility (as defined below), $139.4 million, net of unamortized debt issuance costs, of the 4.50% Notes due January 2026 outstanding, $148.1 million, net of unamortized debt issuance costs, of the 3.375% Notes due October 2026, $69.7 million, net of unamortized debt issuance costs, of the 7.75% Notes due August 2028 and $148.7 million, net of unamortized debt issuance costs, of SBA Debentures (as defined below) outstanding. As of March 31, 2024, Capital Southwest had $194.2 million in available borrowings under the Corporate Credit Facility and $150.0 million in available borrowings under the SPV Credit Facility (as defined below). The regulatory debt to equity ratio at the end of the quarter was 0.82 to 1.

In August 2016, CSWC entered into a senior secured credit facility (the “Corporate Credit Facility”) to provide additional liquidity to support its investment and operational activities. Borrowings under the Corporate Credit Facility accrue interest on a per annum basis at a rate equal to the applicable SOFR rate plus 2.15%. On August 2, 2023, CSWC entered into the Third Amended and Restated Senior Secured Revolving Credit Agreement (the "Credit Agreement") that (1) increased commitments under the Corporate Credit Facility from $400 million to $435 million; (2) added an uncommitted accordion feature that could increase the maximum commitments up to $750 million; (3) extended the end of the Corporate Credit Facility's revolving period from August 9, 2025 to August 2, 2027 and extended the final maturity from August 9, 2026 to August 2, 2028; and (4) amended several financial covenants. On December 7, 2023, the Company entered into an Incremental Commitment and Assumption Agreement that increased the total commitments under the accordion feature of the Credit Agreement by $25 million, which increased total commitments from $435 million to $460 million. The $25 million increase was provided by one new lender, bringing the total bank syndicate to ten participants.

On March 1, 2024, the Company entered into Amendment No. 1 to the Credit Agreement (the "Amendment"). The Amendment amended the Credit Agreement and other related loan documents to, among other things, permit the Company to enter into special purpose vehicle financings and exclude assets held by any such special purpose vehicle from the assets pledged as collateral securing the Corporate Credit Facility.

On February 2, 2024, the Company formed Capital Southwest SPV LLC ("SPV"). SPV is a special purpose vehicle that was formed to hold investments for the SPV Credit Facility (as defined below) to support our investment and operating activities. On March 20, 2024, SPV entered into a special purpose vehicle financing credit facility (the "SPV Credit Facility"). The SPV Credit Facility includes total commitments of $150 million of initial commitments with (i) an increase to $200 million of total commitments on the earlier of (a) June 20, 2024 or (b) the date requested by the Company, in its sole discretion, and (ii) an accordion feature that allows increases up to $400 million of total commitments from new and existing lenders on the same terms and conditions as the existing commitments. Borrowings under the SPV Credit Facility bear interest at three-month Term SOFR plus 2.50% per annum during the revolving period ending on March 20, 2027 and three-month Term SOFR plus an applicable margin of 2.85% thereafter. SPV pays unused commitment fees of (i) 0.10% through April 20, 2024 and (ii) 0.35% thereafter, on the unused lender commitments under the SPV Credit Facility, in addition to other customary fees. The SPV Credit Facility matures on March 20, 2029.

In June 2023, the Company issued approximately $71.9 million in aggregate principal amount, including the underwriters' full exercise of their option to purchase an additional $9.4 million in aggregate principal amount to cover over-allotments, of 7.75% notes due 2028 (the "August 2028 Notes"). The August 2028 Notes mature on August 1, 2028 and may be redeemed in whole or in part at any time, or from time to time, at the Company’s option on or after August 1, 2025. The August 2028 Notes bear interest at a rate of 7.75% per year, payable quarterly on February 1, May 1, August 1 and November 1 of each year. The August 2028 Notes are the direct unsecured obligations of the Company, rank pari passu with the Company's other outstanding and future unsecured unsubordinated indebtedness and are effectively or structurally subordinated to all of the Company's existing and future secured indebtedness, including borrowings under the Corporate Credit Facility, the SPV Credit Facility and the SBA Debentures. The August 2028 Notes are listed on the Nasdaq Global Select Market under the trading symbol "CSWCZ."

The Company has an "at-the-market" offering (the "Equity ATM Program"), pursuant to which the Company may offer and sell, from time to time through sales agents, shares of its common stock having an aggregate offering price of up to $650 million. During the quarter ended March 31, 2024, the Company sold 2,069,620 shares of its common stock under

the Equity ATM Program at a weighted-average price of $23.80 per share, raising $49.3 million of gross proceeds. Net proceeds were $48.5 million after commissions to the sales agents on shares sold. For the year ended March 31, 2024, the Company sold 8,733,315 shares of its common stock under the Equity ATM Program at a weighted-average price of $21.09, raising $184.2 million of gross proceeds. Net proceeds were $181.5 million after commissions to the sales agents on shares sold. As of March 31, 2024, the Company has $121.1 million available under the Equity ATM Program.

On April 20, 2021, our wholly owned subsidiary, Capital Southwest SBIC I, LP (“SBIC I”), received a license from the Small Business Administration (the "SBA") to operate as a Small Business Investment Company ("SBIC") under Section 301(c) of the Small Business Investment Act of 1958, as amended. The SBIC license allows SBIC I to obtain leverage by issuing SBA-guaranteed debentures ("SBA Debentures"), subject to the issuance of a leverage commitment by the SBA. SBA debentures are loans issued to an SBIC that have interest payable semi-annually and a ten-year maturity. The interest rate is fixed shortly after issuance at a market-driven spread over U.S. Treasury Notes with ten-year maturities. On December 20, 2023, SBIC I received an additional leverage commitment in the amount of $45.0 million to be issued on or prior to September 30, 2028. As of March 31, 2024, SBIC I had a total leverage commitment from the SBA in the amount of $175.0 million, of which $22.0 million remains unused.

Share Repurchase Program

On July 28, 2021, the Company's board of directors (the "Board") approved a share repurchase program authorizing the Company to repurchase up to $20 million of its outstanding shares of common stock in the open market at certain thresholds below its NAV per share, in accordance with guidelines specified in Rules 10b5-1(c)(1)(i)(B) and 10b-18 under the Securities Exchange Act of 1934, as amended. On August 31, 2021, the Company entered into a share repurchase agreement, which became effective immediately, and the Company will cease purchasing its common stock under the share repurchase program upon the earlier of, among other things: (1) the date on which the aggregate purchase price for all shares equals $20 million including, without limitation, all applicable fees, costs and expenses; or (2) upon written notice by the Company to the broker that the share repurchase agreement is terminated. During the quarter ended March 31, 2024, the Company did not repurchase any shares of the Company’s common stock under the share repurchase program.

Regular Dividend of $0.57 Per Share and Supplemental Dividend of $0.06 Per Share for Quarter Ended June 30, 2024

On April 24, 2024, the Board declared a total dividend of $0.63 per share for the quarter ended June 30, 2024, comprised of a Regular Dividend of $0.57 per share and a Supplemental Dividend of $0.06 per share.

The Company's dividend will be payable as follows:

Regular Dividend

Amount Per Share: $0.57

Ex-Dividend Date: June 14, 2024

Record Date: June 14, 2024

Payment Date: June 28, 2024

Supplemental Dividend

Amount Per Share: $0.06

Ex-Dividend Date: June 14, 2024

Record Date: June 14, 2024

Payment Date: June 28, 2024

When declaring dividends, the Board reviews estimates of taxable income available for distribution, which may differ from net investment income under generally accepted accounting principles. The final determination of taxable income for each year, as well as the tax attributes for dividends in such year, will be made after the close of the tax year.

Capital Southwest maintains a dividend reinvestment plan ("DRIP") that provides for the reinvestment of dividends on behalf of its registered stockholders who hold their shares with Capital Southwest’s transfer agent and registrar, American Stock Transfer and Trust Company. Under the DRIP, if the Company declares a dividend, registered

stockholders who have opted into the DRIP by the dividend record date will have their dividend automatically reinvested into additional shares of Capital Southwest common stock.

Fourth Quarter 2024 Earnings Results Conference Call and Webcast

Capital Southwest has scheduled a conference call on Wednesday, May 15, 2024, at 11:00 a.m. Eastern Time to discuss the fourth quarter 2024 financial results. You may access the call by using the Investor Relations section of Capital Southwest's website at www.capitalsouthwest.com, or by using http://edge.media-server.com/mmc/p/bpo2bhpw.

An audio archive of the conference call will also be available on the Investor Relations section of Capital Southwest’s website.

For a more detailed discussion of the financial and other information included in this press release, please refer to the Capital Southwest's Form 10-K for the year ended March 31, 2024 to be filed with the Securities and Exchange Commission (the "SEC") and Capital Southwest’s Fourth Fiscal Quarter 2024 Earnings Presentation to be posted on the Investor Relations section of Capital Southwest’s website at www.capitalsouthwest.com.

About Capital Southwest

Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $1.5 billion in investments at fair value as of March 31, 2024. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $35 million investments across the capital structure, including first lien, second lien and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.

Forward-Looking Statements

This press release contains historical information and forward-looking statements with respect to the business and investments of Capital Southwest, including, but not limited to, the statements about Capital Southwest's future performance and financial performance and financial condition, Capital Southwest's ability to continue to grow its balance sheet, and the timing, form and amount of any distributions or supplemental dividends in the future. Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks related to: changes in the markets in which Capital Southwest invests; changes in the financial, capital, and lending markets; changes in the interest rate environment and its impact on our business and our portfolio companies; regulatory changes; tax treatment; our ability to operate our wholly owned subsidiary, Capital Southwest SBIC I, LP, as a small business investment company; an economic downturn and its impact on the ability of our portfolio companies to operate and the investment opportunities available to us; the impact of supply chain constraints and labor shortages on our portfolio companies; and the elevated levels of inflation and its impact on our portfolio companies and the industries in which we invests.

Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2024 to be filed with the SEC, and any subsequent filings with the SEC, including the "Risk Factors" sections therein, for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.

Investor Relations Contact:

Michael S. Sarner, Chief Financial Officer

214-884-3829


CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In thousands, except shares and per share data)

	March 31,		March 31,
	2024		2023
	(Unaudited)
Assets
Investments at fair value:
Non-control/Non-affiliate investments (Cost: $1,276,690 and $947,829, respectively)	$	1,286,355	$	966,627
Affiliate investments (Cost: $200,013 and $191,523, respectively)	190,206		188,505
Control investments (Cost: $0 and $80,800, respectively)	—		51,256
Total investments (Cost: $1,476,703 and $1,220,152, respectively)	1,476,561		1,206,388
Cash and cash equivalents	32,273		21,585
Receivables:
Dividends and interest	22,928		18,430
Escrow	16		363
Other	7,276		647
Income tax receivable	336		368
Debt issuance costs (net of accumulated amortization of $7,741 and $5,642, respectively)	10,928		3,717
Other assets	6,440		6,186
Total assets	$	1,556,758	$	1,257,684

Liabilities
SBA Debentures (net of $4,305 and $3,670, respectively, of unamortized debt issuance costs)	$	148,695	$	116,330
January 2026 Notes (net of $612 and $949, respectively, of unamortized debt issuance costs)	139,388		139,051
October 2026 Notes (net of $1,923 and $2,737, respectively, of unamortized debt issuance costs)	148,077		147,263
August 2028 Notes (net of $2,182 and $0, respectively, of unamortized debt issuance costs)	69,693		—
Credit Facilities	265,000		235,000
Other liabilities	17,381		16,761
Accrued restoration plan liability	570		598
Income tax payable	281		156
Deferred tax liability	11,997		12,117
Total liabilities	801,082		667,276

Commitments and contingencies (Note 11)

Net Assets
Common stock, $0.25 par value: authorized, 75,000,000 shares at March 31, 2024 and 40,000,000 shares at March 31, 2023; issued, 45,050,759 shares at March 31, 2024 and 38,415,937 shares at March 31, 2023	11,263		9,604
Additional paid-in capital	796,945		646,586
Total distributable (loss) earnings	(52,532)		(41,845)
Treasury stock - at cost, no shares at March 31, 2024 and 2,339,512 shares at March 31, 2023	—		(23,937)
Total net assets	755,676		590,408
Total liabilities and net assets	$	1,556,758	$	1,257,684
Net asset value per share (45,050,759 shares outstanding at March 31, 2024 and 36,076,425 shares outstanding at March 31, 2023)	$	16.77	$	16.37


CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except shares and per share data)

	Years Ended
	March 31,
		2024		2023		2022
Investment income:
Interest income:
Non-control/Non-affiliate investments		$	133,329	$	87,982	$	58,136
Affiliate investments		17,209		11,658		7,122

Payment-in-kind interest income:
Non-control/Non-affiliate investments		7,737		2,382		2,051
Affiliate investments		2,471		3,060		1,160

Dividend income:
Non-control/Non-affiliate investments		3,533		1,824		1,654
Affiliate investments		230		141		28
Control investments		7,983		7,337		6,720
Fee income:
Non-control/Non-affiliate investments		4,257		4,057		4,833
Affiliate investments		759		638		494
Control investments		82		100		—
Other income		545		121		17
Total investment income		178,135		119,300		82,215
Operating expenses:
Compensation		10,631		9,870		8,838
Share-based compensation		4,518		3,705		3,585
Interest		43,088		28,873		19,924
Professional fees		3,705		3,180		2,489
General and administrative		5,244		4,632		4,077
Total operating expenses		67,186		50,260		38,913
Income before taxes		110,949		69,040		43,302
Federal income, excise and other taxes		1,135		630		181
Deferred taxes		(191)		(301)		434
Total income tax provision		944		329		615
Net investment income		$	110,005	$	68,711	$	42,687
Realized (loss) gain
Non-control/Non-affiliate investments		$	(18,062)	$	(5,872)	$	7,136
Affiliate investments		(6,500)		(11,027)		140
Control investments		(15,047)		—		—
Income tax provision		(286)		(130)		(1,442)
Total net realized (loss) gain on investments, net of tax		(39,895)		(17,029)		5,834
Net unrealized appreciation (depreciation) on investments
Non-control/Non-affiliate investments		1,584		(6,942)		20,940
Affiliate investments		(6,688)		6,014		(4,750)
Control investments		18,727		(11,147)		(2,755)
Income tax benefit (provision)		17		(6,514)		(1,968)
Total net unrealized appreciation (depreciation) on investments, net of tax		13,640		(18,589)		11,467
Net realized and unrealized (losses) gains on investments		(26,255)		(35,618)		17,301
Realized loss on extinguishment of debt		(361)		—		(17,087)
Realized loss on disposal of fixed assets		—		—		(86)
Net increase in net assets from operations		$	83,389	$	33,093	$	42,815

Pre-tax net investment income per share - basic and diluted		$	2.72	$	2.30	$	1.90
Net investment income per share – basic and diluted		$	2.70	$	2.29	$	1.87
Net increase in net assets from operations – basic and diluted		$	2.05	$	1.10	$	1.87
Weighted average shares outstanding – basic and diluted		40,727,133		30,015,533		22,839,835

Q4 2024 Earnings Presentation 8333 Douglas Avenue, Suite 1100 | Dallas, Texas 75225 | 214.238.5700 | capitalsouthwest.com May 15, 2024 Capital Southwest Corporation

Page 2 Important Notices • These materials and any presentation of which they form a part are neither an offer to sell, nor a solicitation of an offer to purchase, any securities of Capital Southwest. • These materials and the presentations of which they are a part, and the summaries contained herein, do not purport to be complete and no obligation to update or otherwise revise such information is being assumed. Nothing shall be relied upon as a promise or representation as to the future performance of Capital Southwest. Such information is qualified in its entirety by reference to the more detailed discussions contained elsewhere in Capital Southwest’s public filings with the Securities and Exchange Commission (the "SEC"). • There is no guarantee that any of the estimates, targets or projections illustrated in these materials and any presentation of which they form a part will be achieved. Any references herein to any of the Capital Southwest’s past or present investments or its past or present performance, have been provided for illustrative purposes only. It should not be assumed that these investments were or will be profitable or that any future investments by Capital Southwest will be profitable or will equal the performance of these investments. • The information contained herein has been derived from financial statements and other documents provided by the portfolio companies unless otherwise stated. • Past performance is not indicative of future results. In addition, there can be no assurance that unrealized investments will be realized at the expected multiples shown as actual realized returns will depend on, among other factors, future operating results of each of Capital Southwest’s current portfolio companies, the value of the assets and economic conditions at the time of disposition, any related transaction costs, and the timing and manner of sale, all of which may differ from the assumptions on which Capital Southwest’s expected returns are based. In many instances, Capital Southwest will not determine the timing or manner of sale of its portfolio companies. • Capital Southwest has filed a registration statement (which contains the prospectus) with the SEC for any offering to which this communication may relate and may file one or more prospectus supplements to the prospectus in the future. Before you invest in any of Capital Southwest's securities, you should read the registration statement and the applicable prospectus and prospectus supplement(s), including the information incorporated by reference therein, in order to fully understand all of the implications and risks of an offering of Capital Southwest's securities. You should also read other documents Capital Southwest has filed with the SEC for more complete information about Capital Southwest and any offering of its securities. You may get these documents for free by visiting EDGAR on the SEC's website at www.sec.gov. Alternatively, Capital Southwest will arrange to send you any applicable prospectus and prospectus supplement(s) if you request such materials by calling us at (214) 238-5700. These materials are also made available, free of charge, on our website at www.capitalsouthwest.com. Information contained on our website is not incorporated by reference into this communication.

Page 3 • This presentation contains forward-looking statements relating to, among other things, the business, market conditions, financial condition and results of operations of Capital Southwest, the anticipated investment strategies and investments of Capital Southwest, and future market demand. Any statements that are not statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, preceded by, followed by, or include words such as "believe," "expect," "intend," "plan," "should" or similar words, phrases or expressions or the negative thereof. These statements are made on the basis of the current beliefs, expectations and assumptions of the management of Capital Southwest and speak only as of the date of this presentation. There are a number of risks and uncertainties that could cause Capital Southwest’s actual results to differ materially from the forward-looking statements included in this presentation. • These risks include risks related to: changes in the markets in which Capital Southwest invests; changes in the financial, capital, and lending markets; the impact of interest rate volatility; the impact of supply chain constraints and labor difficulties on our portfolio companies; elevated levels of inflation and its impact on Capital Southwest's portfolio companies and the industries in which it invests; regulatory changes; tax treatment and general economic and business conditions; our ability to operate our wholly owned subsidiary, Capital Southwest SBIC I, LP, as a small business investment company ("SBIC"); and an economic downturn and its impact on the ability of our portfolio companies to operate and the investment opportunities available to us. • For a further discussion of some of the risks and uncertainties applicable to Capital Southwest and its business, see Capital Southwest’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024 to be filed with the SEC. Other unknown or unpredictable factors could also have a material adverse effect on Capital Southwest’s actual future results, performance, or financial condition. As a result of the foregoing, readers are cautioned not to place undue reliance on these forward-looking statements. Capital Southwest does not assume any obligation to revise or to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, or otherwise, except as may be required by law. Forward-Looking Statements

Page 4 Bowen S. Diehl President and Chief Executive Officer Michael S. Sarner Chief Financial Officer Josh S. Weinstein Senior Managing Director and Chief Investment Officer Chris Rehberger Executive Vice President and Treasurer Conference Call Participants

Page 5 • CSWC was formed in 1961, and elected to be regulated as a BDC in 1988 • Publicly-traded on Nasdaq: Common Stock (“CSWC”) and 7.75% Notes due 2028 ("CSWCZ") • Internally Managed BDC with RIC tax treatment for U.S. federal income tax purposes • 27 employees based in Dallas, Texas • Total Balance Sheet Assets of $1.6 B as of March 31, 2024 • Operate Capital Southwest SBIC I, LP, a wholly-owned subsidiary • Maintain investment grade issuer ratings of Baa3 from Moody's and BBB- from Fitch CSWC Company Overview CSWC is a middle-market lending firm focused on supporting the acquisition and growth of middle-market companies across the capital structure

Page 6 Fiscal Year 2024 Highlights Financial Highlights (1) Operating Leverage calculated as last twelve months operating expenses (excluding interest expense) divided by average annual assets • Investments at Fair Value of $1.5 B compared to $1.2 B in prior year, an increase of 22% • Pre-Tax Net Investment Income increased to $2.72 per share from $2.30 per share in prior year, an increase of 18% • Paid Regular Dividends of $2.24 compared to $2.03 in prior year, an increase of 10% • NAV per Share increased to $16.77 from $16.37 in prior year • Strengthened Balance Sheet through variety of capital raising activities ◦ Raised $184 MM in gross equity proceeds through Equity ATM Program at a weighted average price of $21.09, or 128% of the prevailing NAV per share ◦ Entered into new senior secured SPV Credit Facility with $150 MM in initial commitments ◦ Closed an underwritten offering of $72 MM in aggregate principal of the 7.75% notes due 2028 ◦ Increased total commitments on existing Corporate Credit Facility to $460 MM from $400 MM during the year ◦ Obtained additional $45 MM in leverage commitments during the year resulting in total of $175 MM in SBA approved leverage • Operating Leverage(1) improved to 1.7% as of 3/31/24 from 1.9% as of 3/31/23 • Regulatory Debt to Equity decreased to 0.82x as of 3/31/24 from 0.88x as of 3/31/23

Page 7 • Q4 2024 Pre-Tax Net Investment Income (“NII”) of $29.8 MM or $0.68 per share • Declared Regular Dividend of $0.57 per share for the quarter ending June 30, 2024 ◦ Declared Supplemental Dividend of $0.06 per share for the quarter ending June 30, 2024 • Investment Portfolio at Fair Value increased to $1.5 B from $1.4 B in prior quarter ◦ $157.5 MM in total new committed investments to six new portfolio companies and five existing portfolio companies ◦ $13.7 MM in total proceeds from two debt prepayments generating a weighted average IRR of 16.5% • Net Asset Value per share is $16.77 per share as of March 31, 2024 as compared to $16.77 in prior quarter • Raised $49.3 MM in gross proceeds through Equity ATM Program during the quarter ◦ Sold shares at weighted-average price of $23.80 per share, or 142% of the prevailing NAV per share • Regulatory Debt to Equity ended at 0.82x for the quarter • Entered into new senior secured SPV Credit Facility with $150 MM in initial commitments ◦ Increases to $200 MM in total commitments in June 2024 • $366 MM of total availability and $32 MM in cash and cash equivalents as of quarter end ◦ $344 MM available on Credit Facilities and $22 MM of SBA Debentures available to be drawn Q4 2024 Highlights Financial Highlights

Page 8 • In the last twelve months ended 3/31/2024, CSWC generated $2.72 per share in Pre-Tax NII and paid out $2.24 per share in Regular Dividends ◦ LTM Pre-Tax NII Regular Dividend Coverage of 121% • Cumulative Pre-Tax NII Regular Dividend Coverage of 111% since launch of credit strategy in 2015 • Total of $3.95 per share Special and Supplemental Dividends declared since launch of credit strategy in 2015 • Estimated Undistributed Taxable Income ("UTI") of $0.64 per share as of March 31, 2024 Track Record of Consistent Dividends Continues Dividend Yield – Quarterly Annualized Total Dividend / CSWC Share Price at Qtr. End D iv id en d Pe r Sh ar e $0.53 $0.54 $0.97 $0.48 $0.63 $0.50 $0.57 $0.58 $0.59 $0.62 $0.63 $0.63 $0.63 $0.43 $0.44 $0.47 $0.48 $0.48 $0.50 $0.52 $0.53 $0.54 $0.56 $0.57 $0.57 $0.57 $0.10 $0.10 $0.50 $0.05 $0.05 $0.05 $0.06 $0.06 $0.06 $0.06 $0.15 Regular Dividend Per Share Supplemental Dividend Per Share Special Dividend Per Share 6/30/2021 9/30/2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 9.1% 8.6% 15.3% 8.1% 13.7% 13.3% 13.0% 11.8% 12.0% 10.8% 10.6% 10.1%

Page 9 History of Value Creation $17.68 $17.38 $18.63 $20.90 $22.71 $21.97 $24.90 $28.27 $30.06 $32.93 $17.68 $17.34 $17.80 $19.08 $18.62 $15.13 $16.01 $16.86 $16.37 $16.77 $0.26 $0.26 $1.16 $2.31 $2.71 $3.41 $3.66 $3.89 $0.04 $0.57 $1.56 $2.93 $4.53 $6.18 $8.00 $10.03 $12.27 Net Asset Value Per Share Cumulative Special/Supplemental Dividends Paid Per Share Cumulative Regular Dividends Paid Per Share 9/30/2015 3/31/2016 3/31/2017 3/31/2018 3/31/2019 3/31/2020 3/31/2021 3/31/2022 3/31/2023 3/31/2024 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 Total Value (Net Asset Value + Cumulative Dividends Paid) Increase from Credit Strategy of $15.25 per share through 3/31/2024

Page 10 CSWC leads financing transactions, primarily backing private equity firms that generally fit the following parameters • Flexible financing solutions to fund growth, changes of control, or other corporate events • Investments are diverse among industries, geographic regions, and end markets • Companies with EBITDA between $3 MM and $25 MM • Typical leverage of 2.5x – 4.5x Debt to EBITDA through CSWC debt position and Loan-to-Value of 25% - 50% • Commitment size up to $50 MM with hold sizes generally $5 MM to $35 MM • Both sponsored and non-sponsored deals • Floating rate first lien debt securities • Frequently make equity co-investments alongside CSWC debt Lower Middle Market Credit Strategy

Page 11 Granular Credit Portfolio Heavily Weighted Towards First Lien Investments 97% of credit portfolio in first lien senior secured loans with an average investment hold size of 0.9% as of 3/31/24 Credit Portfolio Heavily Weighted to First Lien $ (M illi on s) Average H old S ize % $93 $167 $239 $368 $474 $573 $794 $1,038 $1,345 5.6% 3.6% 3.8% 2.9% 2.3% 1.9% 1.5% 1.3% 0.9% Sub-Debt Second Lien First Lien Average Hold Size % 3/31/2016 3/31/2017 3/31/2018 3/31/2019 3/31/2020 3/31/2021 3/31/2022 3/31/2023 3/31/2024 $0 $250 $500 $750 $1,000 $1,250 —% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 64% 28% 8% 82% 10% 8% 4% 10% 86% 90% 8% 2% 6% 92% 2% 93% 7% 96% 4% 43% 41% 16% 97% 3%

Page 12 $157.5 MM in total new committed investments to six new portfolio companies and five existing portfolio companies Q4 2024 Originations Portfolio Originations Q4 2024 Name Industry Type Total Debt Funded at Close ($000s) Total Equity Funded at Close ($000s) Unfunded Commitments at Close ($000s) Debt Yield to Maturity Revo Brands, Inc. Consumer Products & Retail First Lien $33,500 $— $7,000 13.2% Tru Fragrance & Beauty LLC Consumer Products & Retail First Lien / Equity $30,603 $1,000 $3,900 12.0% TMT BHC Buyer, Inc. Consumer Services First Lien / Equity $10,000 $500 $10,000 11.7% Winter Services Operations, LLC Business Services First Lien $13,333 $— $2,222 13.7% BP Loenbro Holdings Inc. Industrial Services First Lien $9,798 $— $2,202 12.0% Island Pump and Tank, LLC Environmental Services First Lien / Equity $11,000 $16 $— 12.7% One Group, LLC Restaurants First Lien $9,972 $— $545 12.7% Command Group Acquisition, LLC Healthcare Products First Lien / Equity $6,000 $1,250 $— 13.7% Guardian Fleet Services, Inc.(1) Transportation & Logistics First Lien / Equity $2,500 $— $— 13.0% Zenfolio Inc. Business Services First Lien $1,000 $— $1,000 14.7% Damotech Inc. Industrial Products Equity $— $127 $— N/A Total / Wtd. Avg $127,706 $2,893 $26,869 12.7% • $130.6 MM funded at close (1) CSWC received new warrants as part of the add-on transaction

Page 13 Portfolio Exits Q4 2024 Name Industry Type Total Proceeds ($000s) Realized Gain / (Loss) ($000s) IRR FM Sylvan, Inc. Industrial Services First Lien $11,813 $331 18.9% JVMC Holdings Corp. Financial Services First Lien $1,855 $0 9.9% Total / Wtd. Avg $13,668 $331 16.5% Track Record of CSWC Exits Continues • During the quarter, CSWC exited two debt investments generating proceeds of $13.7 MM and a weighted average IRR of 16.5% • Cumulative weighted average IRR of 14.0% on 74 portfolio company exits, generating $918.9 MM in proceeds since launch of credit strategy in January 2015 $13.7 MM in total proceeds from two debt prepayments

Page 14 CSWC Investment Portfolio Composition Note: All metrics above exclude the investments held by the I-45 SLF for the period ending 12/31/23. During the quarter ended March 31, 2024, the board of managers of I-45 SLF approved the dissolution and liquidation of I-45 SLF (1) At March 31, 2024, investments in 17 portfolio companies were transferred from I-45 to CSWC (2) At March 31, 2024 and December 31, 2023, we had equity ownership in approximately 56% and 65%, respectively, of our investments (3) The weighted-average annual effective yields were computed using the effective interest rates during the quarter for all debt investments at cost as of March 31, 2024, including accretion of original issue discount but excluding fees payable upon repayment of the debt instruments (4) The weighted average annual effective yields on total investments were calculated by dividing total investment income, exclusive of non-recurring fees, by average total investments at fair value (5) Includes CSWC debt investments only. Weighted average EBITDA metric is calculated using investment cost basis weighting. For the quarters ended March 31, 2024 and December 31, 2023, twelve portfolio companies and eleven portfolio companies, respectively, are excluded from this calculation due to a reported debt to adjusted EBITDA ratio that was not meaningful. (6) Includes CSWC debt investments only. Calculated as the amount of each portfolio company’s debt (including CSWC’s position and debt senior or pari passu to CSWC’s position, but excluding debt subordinated to CSWC’s position) in the capital structure divided by each portfolio company’s adjusted EBITDA. Weighted average leverage is calculated using investment cost basis weighting. For the quarters ended March 31, 2024 and December 31, 2023, Twelve portfolio companies and eleven portfolio companies, respectively, are excluded from this calculation due to a reported debt to adjusted EBITDA ratio that was not meaningful. Maintaining appropriate portfolio leverage while receiving attractive risk- adjusted returns Investment Portfolio - Statistics (in $000's) 12/31/2023 3/31/2024 Total CSWC Portfolio Total CSWC Portfolio Number of Portfolio Companies (1) 95 116 Total Cost $1,289,106 $1,476,703 Total Fair Value $1,310,837 $1,476,561 Average Hold Size Debt Investments (at Fair Value) $13,741 $12,566 Average Hold Size Equity Investments (at Fair Value) $2,082 $2,031 % First Lien Investments (at Fair Value) 87.5% 88.7% % Second Lien Investments (at Fair Value) 2.6% 2.3% % Subordinated Debt Investments (at Fair Value) 0.1% 0.1% % Equity (at Fair Value) (2) 9.8% 8.9% Wtd. Avg. Yield on Debt Investments (3) 13.5% 13.3% Wtd. Avg. Yield on Total Investments (4) 13.7% 12.7% Wtd. Avg. EBITDA of Issuer ($MM's) (5) $19.1 $23.0 Wtd. Avg. Leverage through CSWC Security (6) 3.6x 3.6x

Page 15 CSWC Portfolio Mix as of March 31, 2024 at Fair Value Current Investment Portfolio (By Type) Current Investment Portfolio (By Industry) Current Investment Portfolio of $1.5 B continues to be heavily weighted towards first lien investments and diverse across industries First Lien 88.7% Second Lien 2.3% Senior Subordinated Debt 0.1% Equity 8.9% Healthcare Services 14% Business Services 12% Media & Marketing 12% Consumer Products and Retail 11% Consumer Services 8% Food, Agriculture & Beverage 6% Healthcare Products 6% Financial Services 4% Environmental Services 4% Transportation & Logistics 4% Industrial Products 4% Software & IT Services 3% Aerospace & Defense 2% Restaurants 2% Note: Equity represents equity co-investments across 65 portfolio companies

Page 16 Approximately 95% of all debt investments are currently rated a "1" or "2" as credit portfolio continues to demonstrate strong performance Investment Rating 12/31/2023 Investment Rating Upgrades Investment Rating Downgrades 3/31/2024 # of Loans Fair Value ($MM) % of Portfolio (FV) # of Loans Fair Value ($MM) % of Portfolio (FV) # of Loans Fair Value ($MM) % of Portfolio (FV) # of Loans Fair Value ($MM) % of Portfolio (FV) 1 18 $182.0 15.4% 4 $29.2 2.2% — $— —% 21 $197.2 14.7% 2 96 $940.3 79.6% — $— —% — $— —% 123 $1,075.7 80.0% 3 6 $59.5 5.0% — $— —% 3 $10.7 0.8% 9 $68.7 5.1% 4 — $— —% — $— —% 1 $2.9 0.2% 1 $2.9 0.2% Wtd. Avg. Investment Rating (at Cost) 1.91 1.95 Quarter-over-Quarter Investment Rating Migration Note: We utilize an internally developed investment rating system to rate the performance and monitor the expected level of returns for each debt investment in our portfolio. The investment rating system takes into account both quantitative and qualitative factors of the portfolio company and the investments held therein. Investment Ratings range from a rating of 1, which represents the least amount of risk in our portfolio, to 4, which indicates that the investment is performing materially below underwriting expectations.

Page 17 Income Statement (In Thousands, except per share amounts) Quarter Ended 6/30/23 Quarter Ended 9/30/23 Quarter Ended 12/31/23 Quarter Ended 3/31/24 Investment Income Interest Income $34,819 $37,955 $37,841 $39,923 PIK Interest Income 1,656 1,526 4,073 2,953 Dividend Income 2,703 2,484 4,672 1,887 Fees and Other Income 1,183 812 1,980 1,668 Total Investment Income $40,361 $42,777 $48,566 $46,431 Expenses Cash Compensation $2,510 $2,333 $3,919 $1,869 Share Based Compensation 963 1,236 1,188 1,131 General & Administrative 2,204 2,316 2,220 2,209 Total Expenses (excluding Interest) $5,677 $5,885 $7,327 $5,209 Interest Expense $9,681 $10,481 $11,473 $11,453 Pre-Tax Net Investment Income $25,003 $26,411 $29,766 $29,769 Gains / Losses and Taxes Net Realized and Unrealized Losses $(744) $(4,209) $(5,375) $(15,927) Realized Loss on Extinguishment of Debt — (361) — — Income Tax (Expense) / Benefit (447) 783 (907) (373) Net increase in Net Assets Resulting from Operations $23,812 $22,624 $23,484 $13,469 Weighted Average Diluted Shares Outstanding 37,598 39,698 41,514 44,101 Pre-Tax NII Per Diluted Weighted Average Share $0.67 $0.67 $0.72 $0.68 Net Increase in Net Assets Per Dil. Wtd. Average Share $0.63 $0.57 $0.57 $0.31

Page 18 Operating Leverage Trend Continuing to improve Operating Leverage through benefits of internally- managed structure Period Ending To ta l A ss et s ( $M M ) O perating Expenses as % of A vg A ssets $284 $326 $417 $552 $585 $736 $974 $1,258 $1,556 4.9% 4.2% 3.7% 3.0% 2.8% 2.4% 2.2% 1.9% 1.7% FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 $0 $250 $500 $750 $1,000 $1,250 $1,500 1% 2% 3% 4% 5% 6% Total Assets Operating Expenses as % of Average Total Assets Note: Operating Leverage calculated as last twelve months operating expenses (excluding interest expense) divided by average annual assets

Page 19 $16.77 $0.68 $(0.57) $(0.06) $(0.33) $(0.02) $0.31 $(0.01) $16.77 12 /31 /20 23 NAV/Shar e Pre- Tax Net I nv est ment In com e Regu lar Divi den d Sup ple ment al D ivi den d Net C han ge in Valu ati on of Debt Port fol io Net C han ge in Valu ati on of Equ ity Port fol io Accr eti on fro m Equ ity Iss uan ce Othe r C orp ora te 3/3 1/2 02 4 N AV/Shar e $14 $14.5 $15 $15.5 $16 $16.5 $17 $17.5 $18 NAV per Share Bridge for Quarter Ended 3/31/24 Earnings / Dividends $0.05 per Share Investment Portfolio Valuation Change $(0.35) per Share Other Corporate $0.30 per Share

Page 20 Significant Unused Debt Capacity with Long-Term Duration Raised SPV Credit Facility with $150 MM in initial commitments during the quarter Facility Total Commitments Interest Rate Maturity Principal Drawn Undrawn Commitment January 2026 Notes (1) $140.0 MM 4.50% January 2026 $140.0 MM N/A October 2026 Notes (2) $150.0 MM 3.375% October 2026 $150.0 MM N/A Corporate Credit Facility $460.0 MM Term SOFR + 2.15% August 2028 $265.0 MM $194.2 MM (3) August 2028 Notes (4) $71.9 MM 7.75% August 2028 $71.9 MM N/A SPV Credit Facility $150.0 MM (5) Term SOFR + 2.50% March 2029 $0.0 MM $150.0 MM SBA Debentures $175.0 MM 4.31% (6) September 2031 (7) $153.0 MM $22.0 MM P rin ci pa l P ay m en ts ($ M M ) Long-Term Debt Obligations (Calendar Year) $290.0 $336.9 $153.0 $140.0 $265.0 $150.0 $71.9 $153.0 January 2026 Notes SPV Facility Corporate Credit Facility October 2026 Notes August 2028 Notes SBA Debentures CY 2024 CY 2025 CY 2026 CY 2027 CY 2028 CY 2029 - CY 2033 $0 $150 $300 $450 $600 (1) Redeemable in whole or in part at any time prior to October 31, 2025, at par plus a "make whole" premium, and thereafter at par (2) Redeemable in whole or in part at any time prior to July 1, 2026, at par plus a "make whole" premium, and thereafter at par (3) Net of $0.9 MM in letters of credit outstanding (4) Redeemable in whole or in part at Capital Southwest's option on or after August 1, 2025 (5) Increases to $200 MM of total commitments on the earlier of (a) June 20, 2024 or (b) the date requested by Capital Southwest, in its sole discretion (6) Weighted average interest rate of all SBA Debentures for the three months ended March 31, 2024 (7) First SBA Debentures mature on September 1, 2031

Page 21 Balance Sheet (In Thousands, except per share amounts) Quarter Ended 6/30/23 Quarter Ended 9/30/23 Quarter Ended 12/31/23 Quarter Ended 3/31/24 Assets Portfolio Investments $1,285,318 $1,353,566 $1,365,037 $1,476,561 Cash & Cash Equivalents 21,278 23,020 23,605 32,273 Other Assets 30,407 40,327 40,845 47,924 Total Assets $1,337,003 $1,416,913 $1,429,487 $1,556,758 Liabilities SBA Debentures $121,352 $126,376 $126,081 $148,695 January 2026 Notes 139,135 139,220 139,304 139,388 October 2026 Notes 147,448 147,633 147,884 148,077 August 2028 Notes 69,327 69,438 69,566 69,693 Corporate Credit Facility 195,000 250,000 195,000 265,000 Other Liabilities 28,540 26,472 30,687 30,229 Total Liabilities $700,802 $759,139 $708,522 $801,082 Shareholders Equity Net Asset Value $636,201 $657,774 $720,965 $755,676 Net Asset Value per Share $16.38 $16.46 $16.77 $16.77 Regulatory Debt to Equity 0.87x 0.92x 0.77x 0.82x

Page 22 Portfolio Statistics (1) CSWC utilizes an internal 1 - 4 investment rating system in which 1 represents material outperformance and 4 represents material underperformance. All new investments are initially set to 2. Weighted average investment rating is calculated at cost. (2) At Fair Value Continuing to build a well performing credit portfolio (In Thousands) Quarter Ended 6/30/23 Quarter Ended 9/30/23 Quarter Ended 12/31/23 Quarter Ended 3/31/24 Portfolio Statistics Fair Value of Debt Investments $1,110,915 $1,179,074 $1,181,737 $1,344,559 Average Debt Investment Hold Size $13,548 $13,553 $13,741 $12,566 Fair Value of Debt Investments as a % of Par 97% 97% 97% 96% % of Investment Portfolio on Non-Accrual (at Fair Value) 1.7% 2.0% 2.2% 2.3% Weighted Average Investment Rating (1) 1.91 1.92 1.91 1.95 Weighted Average Yield on Debt Investments 12.94% 13.50% 13.53% 13.29% Fair Value of All Portfolio Investments $1,285,318 $1,353,566 $1,365,037 $1,476,561 Weighted Average Yield on all Portfolio Investments 12.64% 12.97% 13.74% 12.67% Investment Mix (Debt vs. Equity) (2) 90% / 10% 90% / 10% 90% / 10% 91% / 9%

Page 23 Investment Income Detail Constructing a portfolio of investments with recurring cash yield (In Thousands) Quarter Ended 6/30/23 Quarter Ended 9/30/23 Quarter Ended 12/31/23 Quarter Ended 3/31/24 Investment Income Breakdown Cash Interest $33,703 $36,588 $36,743 $38,881 Cash Dividends 2,703 2,484 4,672 1,887 PIK Income 1,656 1,526 4,073 2,953 Amortization of Purchase Discounts and Fees 1,172 1,447 1,292 1,254 Management/Admin Fees 380 401 467 469 Prepayment Fees & Other Income 747 331 1,319 987 Total Investment Income $40,361 $42,777 $48,566 $46,431 Key Metrics Cash Income as a % of Investment Income (1) 96% 96% 92% 94% % of Total Investment Income that is Recurring 98% 99% 93% 98% (1) Includes Purchase Discounts and Fees previously received in cash

Page 24 Key Financial Metrics Strong Pre-Tax Net Investment Income and Dividend Yield driven by net portfolio growth and investment performance (1) Return on Equity is calculated as the quarterly annualized Pre-Tax NII, Realized Earnings, or Total Earnings, respectively, divided by equity at the end of the prior quarter Quarter Ended 6/30/23 Quarter Ended 9/30/23 Quarter Ended 12/31/23 Quarter Ended 3/31/24 Key Financial Metrics Pre-Tax Net Investment Income Per Wtd Avg Diluted Share $0.67 $0.67 $0.72 $0.68 Pre-Tax Net Investment Income Return on Equity (ROE)(1) 16.25% 16.25% 17.42% 16.10% Realized Earnings Per Wtd Avg Diluted Share $0.31 $0.69 $0.51 $0.22 Realized Earnings Return on Equity (ROE)(1) 7.65% 16.75% 12.30% 5.27% Earnings Per Wtd Avg Diluted Share $0.63 $0.57 $0.57 $0.31 Earnings Return on Equity (ROE)(1) 15.48% 13.92% 13.75% 7.28% Regular Dividends per Share $0.54 $0.56 $0.57 $0.57 Supplemental / Special Dividends per Share $0.05 $0.06 $0.06 $0.06 Total Dividends per Share $0.59 $0.62 $0.63 $0.63

Page 25 Note: Illustrative change in annual NII does not adjust for potential changes in the credit market, credit quality, size and composition of the assets in the portfolio. It also does not adjust for other business developments, including future originations and repayments. Accordingly, no assurances can be given that actual results would not differ materially from the table above. Interest Rate Sensitivity Fixed vs. Floating Credit Portfolio Exposure Change in Base Interest Rates Illustrative Annual NII Change ($'s) Illustrative Annual NII Change ($ Per Share) (200 bps) (21,181,416) (0.47) (150 bps) (15,886,062) (0.35) (100 bps) (10,590,708) (0.24) (50 bps) (5,295,354) (0.12) 50 bps 5,295,354 0.12 2.6% 97.4% Fixed Floating

Page 26 Corporate Information Board of Directors Senior Management Fiscal Year End Inside Director Bowen S. Diehl March 31 Bowen S. Diehl President & Chief Executive Officer Independent Directors Independent Auditor David R. Brooks Michael S. Sarner RSM US LLP Chicago, ILChristine S. Battist Chief Financial Officer, Secretary & Treasurer Jack D. Furst William R. Thomas Josh S. Weinstein Ramona Rogers-Windsor Senior Managing Director & Chief Investment Officer Corporate Counsel Eversheds Sutherland (US) LLP Corporate Offices & Website Investor Relations 8333 Douglas Avenue Michael S. Sarner Suite 1100 Capital Southwest Dallas, TX 75225 214-884-3829 http://www.capitalsouthwest.com msarner@capitalsouthwest.com Transfer Agent Equiniti Trust Company, LLC Securities Listing www.equiniti.com Nasdaq: "CSWC" (Common Stock) Nasdaq: "CSWCZ" (7.75% Notes due 2028) Industry Analyst Coverage Firm Analyst Contact Information Ladenburg Thalmann & Co., Inc. Mickey Schleien Direct: 305-572-4131 JMP Securities, LLC Brian McKenna Direct: 585-217-7407 Hovde Group Erik Zwick Direct: 617-510-1239 Jefferies, LLC Kyle Joseph Direct: 510-418-0754 Raymond James & Associates Robert Dodd Direct: 901-579-4560 Oppenheimer & Co., Inc. Mitchel Penn Direct: 212-667-7136 UBS Securities, LLC Vilas Abraham Direct: 212-713-3241 B. Riley Securities Bryce Rowe Direct: 703-312-1820

Cover	May 14, 2024
Document Information [Line Items]
Document Type	8-K
Document Period End Date	May 14, 2024
Entity Registrant Name	CAPITAL SOUTHWEST CORPORATION
Entity Incorporation, State or Country Code	TX
Entity File Number	814-00061
Entity Tax Identification Number	75-1072796
Entity Address, Address Line One	8333 Douglas Avenue
Entity Address, Address Line Two	Suite 1100
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75225
City Area Code	214
Local Phone Number	238-5700
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0000017313
Amendment Flag	false
Medium-term Notes
Document Information [Line Items]
Title of 12(b) Security	7.75% Notes due 2028
Trading Symbol	CSWCZ
Security Exchange Name	NASDAQ
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $0.25 par value per share
Trading Symbol	CSWC
Security Exchange Name	NASDAQ