Private Credit Portfolio Analysis | Capital Southwest Reports Q3 2025 Results with Strong Asset Growth
- Editor
- Feb 4
- 2 min read
What's New: Capital Southwest Corp reported its Q3 2025 financial results, showing significant growth in its investment portfolio and total assets. The fund's investment portfolio at fair value increased to $1.70 billion as of December 31, 2024, up from $1.48 billion at the end of the previous quarter (March 31, 2024). Total assets grew to $1.79 billion, compared to $1.56 billion in the prior quarter.
Portfolio Dynamics:
Investment portfolio fair value increased 15.2% quarter-over-quarter to $1.70 billion.
Total assets grew by 14.9% to $1.79 billion compared to the previous quarter.
Cash and cash equivalents increased to $36.0 million from $32.3 million quarter-over-quarter.
Investment Activity :
Dividend and interest receivable rose to $28.2 million from $22.9 million in the previous quarter.
Other receivables decreased to $4.1 million from $7.3 million quarter-over-quarter.
Deferred finance costs, net, declined slightly to $9.9 million from $10.9 million.
Capital Structure:
Total liabilities increased to $958.6 million from $801.1 million in the previous quarter.
Line of credit balance grew to $308.0 million from $265.0 million quarter-over-quarter.
Stockholders' equity rose to $830.4 million from $755.7 million in the prior quarter.
Performance Profile:
Net Asset Value (NAV) per share decreased slightly to $16.59 from $16.77 in the previous quarter.
Common stock value increased to $12.5 million from $11.3 million quarter-over-quarter.
Additional paid-in capital grew to $903.5 million from $797.0 million in the prior quarter.
Risk & Quality:
Deferred income tax liabilities, net, increased to $15.6 million from $12.0 million quarter-over-quarter.
Accrued income taxes rose to $1.3 million from $0.3 million in the previous quarter.
Other liabilities increased to $21.0 million from $17.4 million quarter-over-quarter.
The Wrap: Capital Southwest's Q3 2025 results demonstrate strong growth in its investment portfolio and total assets. The fund's increased liabilities, particularly the line of credit, suggest an expansion of its lending activities. While NAV per share slightly decreased, the overall increase in stockholders' equity indicates positive momentum. The growth in deferred income tax liabilities and accrued income taxes may reflect increased earnings expectations.
Comments