Capital Southwest Forms Joint Venture with Private Credit Asset Manager
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Capital Southwest has formed a joint venture with another private credit asset manager. The joint venture will be an off-balance sheet private fund that will invest primarily in first out senior secured debt opportunities in the lower middle market. The joint venture will be owned equally by Capital Southwest and its joint venture partner, with each holding a 50% equity interest. All investment and operational decisions for the fund will be made by the joint venture's board of managers, which will consist of equal representation from both joint venture partners. It is anticipated that the joint venture will enter into a senior secured credit facility, the borrowings from which will be used to fund investments.
Analyst Views on CSWC
Wall Street analysts forecast CSWC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CSWC is 22.13 USD with a low forecast of 21.00 USD and a high forecast of 24.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
2 Buy
3 Hold
0 Sell
Moderate Buy
Current: 23.380
Low
21.00
Averages
22.13
High
24.00
Current: 23.380
Low
21.00
Averages
22.13
High
24.00
About CSWC
Capital Southwest Corporation is an internally managed business development company. The Company is a market lending firm focused on supporting the acquisition and growth of middle market businesses with investments across the capital structure, including first lien, second lien and non-control equity co-investments. It specializes in providing customized debt and equity financing to lower middle market (LMM) companies in a broad range of investment segments located primarily in the United States. Its investment objective is to produce attractive risk-adjusted returns by generating current income from its debt investments and capital appreciation from its equity and equity-related investments. It invests primarily in first-lien debt securities, secured by security interests in portfolio company assets. It also invests in equity interests in its portfolio companies alongside its debt securities. It also offers managerial assistance to its portfolio companies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
