Capital Southwest Supports DFW Capital Partners’ Investment in Industrial Security Integrators

Rhea-AI Summary

Capital Southwest Corporation (Nasdaq: CSWC) announced its support for DFW Capital Partners' investment in Industrial Security Integrators (IsI) through a revolving credit facility, first lien term loan, and minority equity co-investment. Capital Southwest will serve as the sole administrative agent for the financing. IsI, based in Herndon, VA, specializes in technology-based compliance and cybersecurity services, focusing on managed security, network services, and security control software. The transaction highlights Capital Southwest's commitment to finance middle-market growth, particularly in the cybersecurity sector.

Positive

• Capital Southwest led a significant financing deal, showcasing its role as a key player in supporting middle-market businesses.
• The partnership with DFW Capital Partners and investment in IsI aligns with the growing demand for cybersecurity solutions.

Negative

• None.

DALLAS, Oct. 14, 2021 (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, announced today that it recently supported DFW Capital Partners (“DFW”) in its investment in Industrial Security Integrators (“IsI”) with a revolving credit facility, first lien term loan, and a minority equity co-investment. Capital Southwest led the financing and will act as the sole administrative agent.

"We are excited to partner with DFW on its investment in IsI,” said Josh Weinstein, Senior Managing Director of Capital Southwest. “The Company is well positioned to benefit from the increasing need for threat management and compliance expertise within the cybersecurity industry.” Grant Eason, Senior Vice President of Capital Southwest, said, “IsI provides cost-effective managed compliance and cybersecurity solutions that are positioned to continue to grow with DFW’s investment.”

Based in Herndon, VA, IsI is a leading provider of technology-based compliance and cybersecurity services. The company operates three divisions comprising Managed Security Services, Managed Network Services, and Security Control Software.

About Capital Southwest

Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $799 million in investments at fair value as of June 30, 2021. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $25 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.

About DFW Capital Partners

DFW Capital Partners is a private equity investment firm focused on lower middle-market companies. The firm concentrates on service companies, with an emphasis on healthcare, non-discretionary consumer services, outsourced business services, and industrial support services. DFW has established a 20+ year track record of success in building leading companies. DFW is headquartered in Teaneck, New Jersey and maintains an office in Chevy Chase, Maryland

Forward-Looking Statements

This press release contains historical information and forward-looking statements with respect to the business of Capital Southwest, including, but not limited to, the statement about Capital Southwest’s future performance and financial condition. 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; regulatory changes; tax treatment and general economic and business conditions; and uncertainties associated with the impact from the COVID-19 pandemic, including its impact on the global and U.S. capital markets and the global and U.S. economy, the length and duration of the COVID-19 outbreak in the United States as well as worldwide and the magnitude of the economic impact of that outbreak; the effect of the COVID-19 pandemic on our business prospects and the operational and financial performance of our portfolio companies, including our ability and their ability to achieve their respective objectives, and the effects of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business.

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, 2021, and 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, Chief Financial Officer
214-884-3829

FAQ

What investment did Capital Southwest Corporation announce on October 14, 2021?

On October 14, 2021, Capital Southwest Corporation announced its investment in Industrial Security Integrators (IsI) by supporting DFW Capital Partners with a revolving credit facility and a first lien term loan.

What is Industrial Security Integrators known for?

Industrial Security Integrators provides technology-based compliance and cybersecurity services, including managed security and network services.

How much is Capital Southwest's investment portfolio worth?

As of June 30, 2021, Capital Southwest Corporation reported approximately $799 million in investments at fair value.

Which company will Capital Southwest act as the sole administrative agent for?

Capital Southwest will act as the sole administrative agent for the financing related to its investment in Industrial Security Integrators.

What does CSWC focus on in its business strategy?

Capital Southwest Corporation focuses on providing flexible financing solutions to support the acquisition and growth of middle-market businesses.