Wall Street Transcript Interview with Gary L. Martin, Chairman, President and CEO of Capital Southwest Corporation (CSWC)

67 WALL STREET, New York - April 1, 2013 - The Wall Street Transcript has just published its Investment Banks and Asset Management Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Consistent BDC Dividend Yield - Private Middle Market Funding - Decreased Bank Loan Competition - Exchanges Trading Volumes and Cash Flow - Increase In Investor Risk Tolerance - Asset Growth - Capital Flow Into Equities - Fixed Income Bonds

Companies include: Capital Southwest Corporation (CSWC) and many more.

In the following excerpt from the Investment Banks and Asset Management Report, the Chairman, President and CEO of Capital Southwest Corporation (CSWC) discusses company strategy and the outlook for this vital sector:

TWST: Can you begin with a brief introduction to Capital Southwest, including some highlights from the company's history?

Mr. Martin: We were founded in 1961 here in the Dallas area by a group of Texas bankers who were concerned about changes that the state government was contemplating making to the regulation with respect to equity types of collateral, so they thought this new type of mechanism called small business investment companies might be a solution. And that's what they founded originally with $1.5 million of their own money, and they founded one of the very first SBICs in the country.

Then within a year, they validated the business model; it made perfect sense, and more importantly, it worked. They had an IPO, which raised $13.5 million, so from their initial $1.5 million and then the IPO at $13.5, that initial $1.5 million is the only money that has ever been put into this company from outside.

As we go through here, I'm going to give you some figures on what our balance sheet looks like and what we have paid out to shareholders, etc. You can understand that we made a lot of progress.

So our current net asset value as of December 31, 2012, is $628 million, and about half of that is attributable to what we call controlled affiliates - and that's basically wholly owned subsidiaries that are within our portfolio, many of which have been here from eight years to 45 years. And three of them served as wonderful platforms, and they are growing with very good success through strategic acquisitions.

The balance of the portfolio is made up of typical business development activities where we consistently, with our group of investment officers, identify emerging business opportunities. Presently, if I looked at the whole portfolio, we have...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.