Private Credit Portfolio Analysis | Capital Southwest Reports FY 2025 Results
- Editor
- May 20
- 2 min read
Whats New:
Capital Southwest Corporation reported its fiscal year 2025 financial results, showing significant growth in assets and investments compared to the previous year. The fund's total assets increased to $1.88 billion as of March 31, 2025, up from $1.56 billion at the end of fiscal year 2024. Investments owned at fair value grew to $1.79 billion, reflecting the fund's expanded portfolio.
Portfolio Dynamics:
Total assets grew to $1.88 billion as of March 31, 2025, compared to $1.56 billion at the end of fiscal year 2024.
Investments owned at fair value increased to $1.79 billion, up from $1.48 billion at the end of fiscal year 2024.
Cash and cash equivalents rose to $43.22 million from $32.27 million at the end of fiscal year 2024.
Investment Activity:
Payments for purchase of investments increased to $620.46 million in FY 2025, up from $497.49 million in FY 2024.
Proceeds from disposition of investments in debt securities were $276.92 million, compared to $191.41 million in FY 2024.
Proceeds from disposition of investments in equity securities increased to $17.99 million from $4.13 million in FY 2024.
Capital Structure:
Long-term debt (credit facility) increased to $343 million from $265 million at the end of fiscal year 2024.
Stockholders' equity grew to $883.63 million from $755.68 million at the end of fiscal year 2024.
The fund issued additional common stock, with the value increasing to $13.23 million from $11.26 million at the end of fiscal year 2024.
Performance Profile:
Net asset value per share decreased to $16.70 as of March 31, 2025, compared to $16.77 at the end of fiscal year 2024.
Net investment income for FY 2025 was $70.55 million, down from $83.39 million in FY 2024.
Total investment income increased, as evidenced by the growth in dividend and interest receivable to $30.30 million from $22.93 million.
Risk & Quality:
Deferred income tax liabilities increased to $16.78 million from $12.00 million, indicating potential future tax obligations.
Other liabilities grew to $23.04 million from $17.38 million, suggesting increased operational costs or obligations.
The fund reported $1.65 million in restricted cash, compared to zero in the previous year, potentially indicating increased collateral requirements or regulatory compliance.
The Wrap:
Capital Southwest Corporation demonstrated strong growth in fiscal year 2025, with significant increases in total assets, investments at fair value, and stockholders' equity. While the fund's net asset value per share slightly decreased, the overall portfolio expansion and increased investment activity suggest a proactive growth strategy. However, the rise in long-term debt and various liabilities indicates higher leverage and potential risks associated with the fund's expanded operations and investment activities.
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