F4Q26 Recap:

Research evidence excerpt

F4Q26 Recap:

.a. leverage of 3.6x, w.a. interest

coverage of 3.5x. Overall w.a. yields were 10.8% and new originations w.a. yields were 6.6%.

CSWC focuses on maintaining high underwriting standards and high-quality first-lien-heavy

portfolio construction. Closing rate moderated to 1.5% from 2% last quarter, reflecting discipline

in pricing and structuring based on risks and terms, despite an increase in deal flow. The market's

tightening in leverage level and LTV ratios highlights the importance of maintaining disciplined

portfolio construction.

New opportunities were bolstered by the ramp-up of the new JV with TRIN and solid performance

from equity co-investments. CapTrin Partners, a JV with TRIN is ramping up, with $85M in assets,

originating low leverage and high quality investments. At the qtr end, the JV closed $150M revolvers.

The fund is expected to originate at a cadence of $30-40M/qtr and to generate double-digit returns

after ~18 months of ramp-up period. Equity co-investment portfolio of $181M in FV, or 9% of total

portfolio, was marked at 126% of cost, representing $37.8M of embedded unrealized appreciation.

John Hecht * | Equity AnalystThoughts on the stock. CSWC had a solid qtr, despite market pressures from lower base rates,

(415) 229-1569 | jhecht@jefferies.com

inflationary concerns, and macro disruptions, as well as noise around private credit. Coupled

Alexander Villalobos-Morsink * | Equitywith its disciplined approach to operating leverage and underwriting focused on senior-secured

Associate

liens, we view that building opportunities across JV /co-investments positions CSWC to capture +1 (415) 229-1479 | avillalobos@jefferies.com

opportunities for when the market turns.

FY (Mar) 2025A 2026A 2027E 2028E Yuna Sohn * | Equity Associate