Capital Southwest vs Main Street Capital: Why I'm Upgrading CSWC to a Buy
ByAinvest
Monday, Mar 23, 2026 7:53 am ET1min read
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Business development companies (BDCs) are facing challenges with declining net asset values (NAVs) and increased risks due to capital outflows. Despite this, I previously assessed the sector's resilience as positive. Capital Southwest (CSWC) and Main Street Capital (MSC) are two BDCs in the spotlight. While MSC is facing declining NAVs and increasing risks, CSWC has shown resilience and strong fundamentals, prompting an upgrade to a "Buy" rating.

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