Capital Southwest's Recent Share Price Pullback: Valuation and Growth Prospects

Capital Southwest (CSWC) shares have pulled back about 9% over the last 90 days, but its three- and five-year total shareholder returns, up 61% and 109% respectively, highlight its long-term growth potential. Many investors see room for upside driven by robust private equity relationships and increasing deal flow in the lower middle market, positioning Capital Southwest to capture outsize share of new lending opportunities. However, intensifying competition and reliance on equity gains could limit profit growth and challenge its strong dividend performance.