Capital Southwest and Trinity Capital form $100 million joint venture

Capital Southwest Corporation (NASDAQ: CSWC) and Trinity Capital Inc. (NASDAQ: TRIN) announced the formation of a joint venture that will invest in first-out senior secured debt opportunities in the lower middle market, according to a press release statement.

The joint venture will be owned equally by both companies, with each firm committing $50 million and holding a 50% equity interest. Investment and operational decisions will be overseen by a board of managers with equal representation from both partners. The joint venture expects to obtain leverage through a senior-secured credit facility to fund portfolio investments.

"We're excited about the opportunity to partner with Trinity Capital and believe this vehicle will enable Capital Southwest to compete across a broader spectrum of investment opportunities," said Michael Sarner, Chief Executive Officer of Capital Southwest.

Kyle Brown, Chief Executive Officer of Trinity Capital, stated: "We believe this joint venture meaningfully enhances Trinity Capital's ability to diversify our portfolio into the lower middle market and further expands our managed funds business, all for the benefit of our shareholders."

Capital Southwest is a Dallas, Texas-based business development company with approximately $2.0 billion in investments at fair value as of December 31, 2025. The company focuses on middle market lending with $5 million to $50 million investments across the capital structure.

Trinity Capital is a Phoenix, Arizona-based alternative asset manager that structures investments across five lending verticals: Sponsor Finance, Equipment Finance, Tech Lending, Asset Based Lending, and Life Sciences. The company operates with teams located across the United States and Europe.

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