Capital Southwest Announces Preliminary Estimate of Third Quarter 2026 Operating Results and Earnings Release and Conference Call Schedule

Rhea-AI Summary

Sedgwick announced a strategic investment by Altas Partners alongside existing investors Carlyle and Stone Point, with Altas committing $1.0 billion of equity and Carlyle retaining its control position. The transaction implies a total enterprise value of approximately $13.2 billion, up from $6.7 billion at Carlyle's 2018 investment, and is expected to close in Q4 2024 subject to customary conditions. Sedgwick will remain an independent private company; in 2023 it handled more than 8 million claims and had fiduciary responsibility for over $33 billion in claim payments.

Positive

• Altas commits $1.0B of equity to the transaction
• Transaction values Sedgwick at ~$13.2B enterprise value
• Carlyle retains control while adding strategic partners
• Scale: handled >8 million claims and >$33B in 2023 fiduciary payments

Negative

• None.

Key Figures

Enterprise value: $13.2 billion Prior enterprise value: $6.7 billion Altas equity investment: $1 billion +5 more

8 metrics

Enterprise value $13.2 billion Transaction value implied for Sedgwick

Prior enterprise value $6.7 billion Sedgwick value at Carlyle’s 2018 investment

Altas equity investment $1 billion Committed equity as part of Sedgwick transaction

Claims handled Over 8 million Number of claims Sedgwick handled in 2023

Claim payments More than $33 billion Fiduciary responsibility for claim payments in 2023

ATM program size $1,000,000,000 Common stock capacity under CSWC at-the-market program

ATM shares sold 36,843,069 shares Shares sold from March 4, 2019 to Sept 30, 2025

ATM net proceeds $777.9 million Net proceeds realized under ATM program

Market Reality Check

Price: $23.08 Vol: Volume 615,871 is 14% abo...

normal vol

$23.08 Last Close

Volume Volume 615,871 is 14% above 20-day average 539,005. normal

Technical Price 23.72 is trading above 200-day MA 21.56 and within 1% of 52-week high 23.86.

Peers on Argus

CSWC gained 2.18% while key peers were modestly positive: GSBD +1.84%, OCSL +0.9...

CSWC gained 2.18% while key peers were modestly positive: GSBD +1.84%, OCSL +0.93%, PX +1.34%, NFJ +0.08%, and CET roughly flat at -0.02%. Scanner data does not flag a broad sector momentum move.

Historical Context

5 past events · Latest: Dec 09 (Neutral)

5 events

Date	Event	Sentiment	Move	Catalyst
Dec 09	Management promotion	Neutral	+0.5%	Promotion of Grant Eason to Managing Director in investment team.
Nov 19	Dividend declaration	Neutral	-0.1%	Declared regular and supplemental dividends totaling $0.64 per share.
Nov 03	Quarterly earnings	Neutral	-2.3%	Reported Q2 FY2026 results and portfolio/income metrics.
Oct 15	Prelim Q2 results	Neutral	-0.1%	Issued preliminary Q2 FY2026 operating and NAV estimates.
Sep 09	Debt offering	Neutral	-0.9%	Priced $350M 5.950% notes due 2030 for refinancing and debt repayment.

Recent Company History

Over the past several months, CSWC’s news flow centered on capital markets activity, earnings, and dividends. In September 2025, it priced $350M of 5.950% notes due 2030 and later reported Q2 FY2026 results including a $1.9B investment portfolio and pre-tax NII of $34.0M or $0.61 per share. Dividend declarations in November 2025 set total quarterly payouts at $0.64 per share, and a management promotion in December 2025 highlighted ongoing investment team development.

Market Pulse Summary

This announcement, while focused on Sedgwick, comes as CSWC trades near its 52-week high of 23.86 wi...

Analysis

This announcement, while focused on Sedgwick, comes as CSWC trades near its 52-week high of 23.86 with volume about 14% above its 20-day average. Recent history features steady preliminary earnings updates and active capital markets usage, including a $1.0B at-the-market program and a $350M note offering. Investors monitoring CSWC may focus on upcoming prelim estimates, NAV trends around $16–17, and any further capital-raising activity.

Key Terms

enterprise value, fiduciary responsibility, claims management

3 terms

enterprise value financial

"This transaction implies a total enterprise value of approximately $13.2 billion"

Enterprise value is the total worth of a company, reflecting what it would cost to buy the entire business. It includes the company's market value plus any debts, minus its cash holdings, offering a comprehensive picture of its true value. Investors use it to compare companies regardless of their capital structures, helping them assess how much they would need to pay to acquire the business.

fiduciary responsibility financial

"and had fiduciary responsibility for claim payments totaling more than $33 billion"

A legal and ethical duty requiring certain people—such as corporate directors, trustees, and investment advisers—to put the interests of shareholders or clients ahead of their own personal gain. Think of it like a trusted friend managing your money who must choose what’s best for you, not for themselves; for investors, this reduces the risk of self-dealing and helps ensure decisions aim to protect value and long-term returns.

claims management technical

"a leading global provider of claims management, loss adjusting and technology-enabled business solutions"

Claims management is the process of handling and resolving requests for compensation or benefits, such as insurance claims or legal compensation. It involves reviewing, processing, and settling these claims efficiently to ensure that rightful payments are made and disputes are minimized. Effective claims management helps organizations and individuals recover losses smoothly, which can influence financial stability and decision-making.

AI-generated analysis. Not financial advice.

DALLAS, Jan. 15, 2026 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, is pleased to announce its preliminary operating results for the third quarter of its 2026 fiscal year (quarter ended December 31, 2025) and its third quarter 2026 earnings release and conference call schedule.

Capital Southwest’s preliminary estimate of its third quarter 2026 pre-tax net investment income is in the range of $0.59 to $0.60 per share. The preliminary estimate of Capital Southwest’s net investment income for the same period is in the range of $0.63 to $0.64 per share.

Additionally, Capital Southwest’s preliminary estimate of its net asset value per share as of December 31, 2025 is in the range of $16.72 to $16.77. Capital Southwest’s preliminary estimate of its non-accruals as a percentage of the total investment portfolio at cost and fair value is 3.2% and 1.5%, respectively.

Capital Southwest will release its finalized third quarter 2026 results on Monday, February 2, 2026 after the market closes. In conjunction with the release, Capital Southwest has scheduled a live webcast on Tuesday, February 3, 2026 at 11:00 a.m., Eastern Time Investors may participate in the webcast.⁽¹⁾

By Webcast:
Connect to the webcast using the Investor Relations section of Capital Southwest's website at www.capitalsouthwest.com, or by going to the following website: https://edge.media-server.com/mmc/p/dtd67vjy. Please log in at least 10 minutes in advance to register and download any necessary software. A replay of the webcast will be available on Capital Southwest's website shortly after the call.

Live Call Participation:
Participants who want to join the call and ask a question must register using the following URL: https://register-conf.media-server.com/register/BI8409bd2b7eed4a198a02f5059beddd21. Once registered, participants will receive the dial-in numbers and a unique PIN number. When participants dial in, they will input their PIN and be placed into the call. Registration is still possible even after the event has started.

About Capital Southwest
Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $1.9 billion in investments at fair value as of September 30, 2025. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $50 million investments across the capital structure, including first lien, second lien and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.

Forward-Looking Statements
This press release contains forward-looking statements and provides historical information with respect to the business and investments of Capital Southwest, including, but not limited to, the preliminary estimates of its third quarter 2026 fiscal year financial information and results, which are based on current information available to Capital Southwest as of the date hereof. The preliminary estimates of the third quarter 2026 fiscal year financial information and estimated results furnished above are based on Capital Southwest management’s preliminary determinations and current expectations, and such information is inherently uncertain. The preliminary estimates may not align with Capital Southwest’s actual results of operations for the period, which will not be known until Capital Southwest completes its customary quarter-end closing and review procedures, including the determination of the fair value of Capital Southwest’s portfolio investments. As a result, actual results could differ materially from the current preliminary estimates based on adjustments made during Capital Southwest’s quarter-end closing and review procedures, and Capital Southwest’s reported information in its Quarterly Report on Form 10-Q for the quarter ended December 31, 2025 may differ from this information, and any such differences may be material. In addition, the information furnished above does not include all of the information regarding Capital Southwest’s financial condition and results of operations for the quarter ended December 31, 2025 that may be important to readers. As a result, readers are cautioned not to place undue reliance on the information furnished in this press release and should view this information in the context of Capital Southwest’s full third quarter 2026 results when such results are disclosed by Capital Southwest in its Quarterly Report on Form 10-Q for the quarter ended December 31, 2025. The information furnished in this press release is based on current expectations of Capital Southwest’s management that involve substantial risks and uncertainties that could cause actual results to differ materially from the results expressed in, or implied by, such information.

Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks related to: changes in the markets in which Capital Southwest invests; changes in the financial, capital, and lending markets; changes in the interest rate environment and its impact on Capital Southwest’s business and its portfolio companies; regulatory changes; tax treatment; Capital Southwest’s ability to operate each of its wholly owned subsidiaries, Capital Southwest SBIC I, LP and Capital Southwest SBIC II, LP, as a small business investment company; the uncertainty associated with the imposition of tariffs and trade barriers and changes in trade policy and its impact on our portfolio companies and our financial condition; an economic downturn or recession and its impact on the ability of Capital Southwest’s portfolio companies to operate and the investment opportunities available to it; the impact of supply chain constraints on Capital Southwest’s portfolio companies; and the elevated levels of inflation and its impact on Capital Southwest’s portfolio companies and the industries in which it invests.

Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2025 and any subsequent filings, including the "Risk Factors" sections therein, with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.

Investor Relations Contact:
Michael S. Sarner, President and Chief Executive Officer
214-884-3829

(1) No information contained on our website or disclosed on the February 3, 2026 conference call, including the webcast, is incorporated by reference into this press release or any of our filings with the SEC, and you should not consider that information to be part of this press release or any other such filing.

FAQ

What did Sedgwick announce on Sept 12, 2024 and why does it matter to investors in CSWC?

Sedgwick announced a strategic Altas investment with $1.0B committed and an implied enterprise value of ~$13.2B; the deal signals strong private-market valuation trends that may inform comparable-company sentiment, though Sedgwick is a private company.

How much equity did Altas Partners commit to Sedgwick and when is the deal expected to close?

Altas committed $1.0 billion of equity and the transaction is expected to close in Q4 2024, subject to customary closing conditions.

Does Carlyle remain the controlling investor after the Altas transaction?

Yes, Carlyle will maintain its control position in partnership with the investor group and Sedgwick management.

What operating scale did Sedgwick report for 2023 in the announcement?

The company handled more than 8 million claims in 2023 and had fiduciary responsibility for claim payments totaling over $33 billion.

Which advisors worked on the Altas–Sedgwick transaction announced Sept 12, 2024?

Morgan Stanley and BofA Securities advised Sedgwick; J.P. Morgan and Barclays advised Altas; legal advisors included Latham & Watkins and Kirkland & Ellis.