Capital Southwest Teams Up With Trinity Capital on $100M Joint Venture

Published on March 19, 2026 at 1:27 am by Vardah Gill in News

Capital Southwest Corporation (NASDAQ:CSWC) is included among the 14 Under-the-Radar High Dividend Stocks to Buy Now.

On March 16, Capital Southwest Corporation (NASDAQ:CSWC) and Trinity Capital announced the formation of a joint venture. The new entity will focus on investing in first-out senior secured debt opportunities in the lower middle market.

The venture will be owned equally by both firms. Each will commit $50 million and hold a 50% equity stake. Investment and operational decisions will be handled by a board of managers, with equal representation from both sides. The joint venture is also expected to use leverage through a senior-secured credit facility. Borrowings from that facility will be used to fund its investment portfolio. Michael Sarner, Chief Executive Officer of Capital Southwest, made the following statement:

“We’re excited about the opportunity to partner with Trinity Capital and believe this vehicle will enable Capital Southwest to compete across a broader spectrum of investment opportunities. We expect this joint venture with Trinity Capital to enhance CSWC’s ability to compete for and win high-quality lower middle market opportunities by providing more flexible capital solutions, all while maintaining portfolio granularity and expanding the range of platform companies we can pursue.”

Capital Southwest Corporation (NASDAQ:CSWC) is based in Dallas, Texas, and operates as an internally managed business development company. As of December 31, 2025, it held about $2.0 billion in investments at fair value. The firm focuses on middle market lending, supporting acquisitions and growth for businesses through investments ranging from $5 million to $50 million. These include first lien, second lien, and non-control equity co-investments.

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