ABOUT TEAM PORTFOLIO INVESTOR RELATIONS CONTACT HOME ABOUT INVESTMENT STRATEGY INVESTMENT CRITERIA ARTICLES Investment Criteria We provide debt and equity capital for new platform acquisitions, dividend recapitalizations, refinancings, bolt-on acquisitions and growth financings. Lead $5 to $50 million financings Target holds of $5 to $30 million Regularly partner with active network of co-investors We look for companies with the following characteristics: Minimum EBITDA of $3 million Typical direct borrower has $3 to 15 million of EBITDA Appropriate return for the underlying operational and structural risk We work with a wide range of clients including: Financial sponsors Independent sponsors Founder and independently-owned businesses Investment banks and business brokers We seek to either lead a debt financing, club with other lenders, or participate in larger syndicated financings. Credit investment structures include: Unitranche debt (including last out) First lien debt Second lien debt Subordinated debt Preferred and common equity Flexibility to invest across multiple securities in a single transaction We make equity investments alongside our debt checks in situations where we can be a partner to the company and its control investors. Equity investment parameters include: Equity co-investments alongside debt investments, up to 20% of total check Will only make non-control investments We invest across many different industry sectors. Capital Southwest is a generalist investment firm with the following preferred sectors: Industrial manufacturing and services Value-added distribution Healthcare products and services Business services Specialty chemicals Tech-enabled services and SaaS models Food and beverage Syndicated Credit Investment Parameters In addition to making direct investments, we allocate capital to syndicated first and second lien term loans in the upper middle market. The table below summarizes the general investment criteria for our syndicated loan strategy. Our syndicated credit investments are funded directly on our balance sheet or through I-45 SLF LLC, our senior loan fund that we co-manage with Main Street Capital. Upper Middle Market Syndicated 1st Lien Upper Middle Market Syndicated 2nd Lien EBITDA Size $30 MM+ $50 MM+ Closing Leverage < 4x < 6x Target Inv. Hold Size $5-7mm and up to $15mm with I-45 SLF $5 - $7 MM Investment Yield > 6.5% > 9.0% Funding Entity CSWC and / or I-45 SLF CSWC Copyright ©2021 Investment Strategy Investment Criteria Team Portfolio Investor Relations Contact Corporate Governance Tax Information Disclaimer 5400 Lyndon B. Johnson Freeway Lincoln Center Tower 1 Suite 1300 Dallas, TX 75240 Main 214-238-5700 Fax 214-238-5701