- CSWC is a conservatively managed BDC focused on the lower middle market. It has been steadily growing dividends over the past five years.
- Management owns significant amounts of stock and has added during downturns.
- Although CSWC's stock typically sells off with the rest of the BDC sector, its portfolio has avoided major problems. Non accruals peaked at 3.3% and, subsequently, dropped below 2%.
- Recent portfolio exits have delivered double digit IRRs, in spite of the pandemic. This demonstrates the value of CSWC's underwriting.
- Although CSWC trades at a premium to NAV, I plan to continue holding it as a core holding in my income portfolio.
For further details see:
Capital Southwest Has Proved Its Resilience In Challenging Times