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

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.

While we acknowledge the risk and potential of CSWC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CSWC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading into 2026 and 14 High Growth Dividend Paying Stocks to Invest In Now

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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