Capital Southwest Corporation

Dating to 1961 and based in Dallas, Capital Southwest is one of the older names in this corner of the market. Unlike most business development companies, it is internally managed, meaning its investment team are employees rather than an outside adviser collecting fees, which keeps costs closer to shareholders. It focuses on the lower middle market, lending to smaller companies, often those with a few million dollars of annual earnings, that larger senior lenders overlook. The portfolio leans heavily on first-lien senior secured debt, with some equity co-investments alongside. As a BDC it distributes most of its income, so the draw is a floating-rate dividend. Financing very small borrowers carries more concentrated credit risk than lending to bigger companies, and a downturn would press that book harder.

On MyRWA, CSWC trades tokenized across 1 on-chain venue - see the listings below.