FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Dec. 31, 2024

The following fair value hierarchy tables set forth our investment portfolio by level as of December 31, 2024 and March 31, 2024 (in thousands):


			Fair Value Measurements
			at December 31, 2024 Using
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
First lien loans	$	1,515,142	$	—	$	—	$	1,515,142
Second lien loans	26,160		—		—		26,160
Subordinated debt	1,222		—		—		1,222
Preferred equity	85,216		—		—		85,216
Common equity & warrants	73,546		—		—		73,546
Total Investments	$	1,701,286	$	—	$	—	$	1,701,286



			Fair Value Measurements
			at March 31, 2024 Using
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
First lien loans	$	1,309,449	$	—	$	—	$	1,309,449
Second lien loans	33,774		—		—		33,774
Subordinated debt	1,336		—		—		1,336
Preferred equity	71,127		—		—		71,127
Common equity & warrants	60,875		—		—		60,875
Total Investments	$	1,476,561	$	—	$	—	$	1,476,561

Schedule of Valuation Techniques and Significant Level 3 Inputs

The tables below present the Valuation Techniques and Significant Level 3 Inputs (ranges and weighted averages) used in the valuation of CSWC’s debt and equity securities at December 31, 2024 and March 31, 2024. Significant Level 3 Inputs were weighted by the relative fair value of the investments. The tables are not intended to be all inclusive, but instead capture the significant unobservable inputs relevant to our determination of fair value.


		Fair Value at		Significant
	Valuation	December 31, 2024		Unobservable		Weighted
Type	Technique	(in thousands)		Inputs	Range	Average

First lien loans	Income Approach	$	1,322,677	Discount Rate	5.2% - 73.9%	13.8%
				Third Party Broker Quote	21.0 - 100.0	91.5
	Market Approach	177,560		Cost	95.3 - 100.0	98.9

	Enterprise Value Waterfall Approach	14,905		EBITDA Multiple	7.5x - 9.0x	7.5x
				Discount Rate	18.9% - 45.4%	18.9%
Second lien loans	Income Approach	26,160		Discount Rate	10.6% - 38.6%	14.4%





Subordinated debt	Income Approach	605		Discount Rate	14.1% - 14.1%	14.1%
				Third Party Broker Quote	24.8 - 24.8	24.8
	Market Approach	59		Cost	95.1 - 95.1	95.1
	Enterprise Value Waterfall Approach	558		EBITDA Multiple	6.1x - 7.8x	6.6x
				Discount Rate	14.5% - 17.3%	15.4%
Preferred equity	Enterprise Value Waterfall Approach	82,716		EBITDA Multiple	4.3x - 17.0x	9.7x
				Discount Rate	12.2% - 45.4%	15.8%
	Market Approach	2,500		Cost	100.0 - 100.0	100.0
Common equity & warrants	Enterprise Value Waterfall Approach	73,024		EBITDA Multiple	4.0x - 15.5x	8.1x
				Discount Rate	11.5% - 24.6%	15.0%
	Market Approach	522		Cost	100.0 - 100.0	100.0

Total Level 3 Investments		$	1,701,286


		Fair Value at		Significant
	Valuation	March 31, 2024		Unobservable		Weighted
Type	Technique	(in thousands)		Inputs	Range	Average

First lien loans	Income Approach	$	1,211,447	Discount Rate	5.5% - 43.8%	13.4%
				Third Party Broker Quote	38.3 - 100.0	92.4
	Market Approach	98,002		Cost	98.0 - 99.0	98.1



Second lien loans	Income Approach	33,774		Discount Rate	13.4% - 33.3%	15.6%
				Third Party Broker Quote	28.0 - 28.0	28.0


Subordinated debt	Income Approach	568		Discount Rate	18.7% - 18.7%	18.7%
				Third Party Broker Quote	23.3 - 23.3	23.3
	Market Approach	210		Cost	94.0 - 100.0	96.1
	Enterprise Value Waterfall Approach	558		EBITDA Multiple	5.7x - 7.9x	6.4x
				Discount Rate	13.2% - 18.6%	14.8%
Preferred equity	Enterprise Value Waterfall Approach	68,877		EBITDA Multiple	4.3x - 17.0x	9.9x
				Discount Rate	10.3% - 38.0%	16.7%
	Market Approach	2,250		Cost	100.0 - 100.0	100.0
Common equity & warrants	Enterprise Value Waterfall Approach	60,375		EBITDA Multiple	4.7x - 15.6x	8.6x
				Discount Rate	10.3% - 30.2%	16%
	Market Approach	500		Cost	100.0 - 100.0	100.0

Total Level 3 Investments		$	1,476,561

Schedule of Changes in Fair Value of Investments Measured Using Level 3 Inputs

The following tables provide a summary of changes in the fair value of investments measured using Level 3 inputs during the nine months ended December 31, 2024 and 2023 (in thousands):


	Fair Value March 31, 2024		Realized & Unrealized Gains (Losses)		Purchases of Investments1,2		Repayments		PIK Interest Capitalized		Divestitures		Conversion/Exchange of Security		Fair Value December 31, 2024		YTD Unrealized Appreciation (Depreciation) on Investments held at period end
First lien loans	$	1,309,449	$	(39,763)	$	466,533	$	(197,759)	$	8,720	$	(27,308)	$	(4,730)	$	1,515,142	$	(28,533)
Second lien loans	33,774		(3,011)		18		(3,629)		70		—		(1,062)		26,160		(1,130)
Subordinated debt	1,336		43		57		(75)		14		—		(153)		1,222		34
Preferred equity	71,127		7,359		6,730		—		—		—		—		85,216		7,359
Common equity & warrants	60,875		2,031		4,695		—		—		—		5,945		73,546		2,830
Total Investments	$	1,476,561	$	(33,341)	$	478,033	$	(201,463)	$	8,804	$	(27,308)	$	—	$	1,701,286	$	(19,440)

	Fair Value March 31, 2023		Realized & Unrealized Gains (Losses)		Purchases of Investments1		Repayments		PIK Interest Capitalized		Divestitures		Conversion/Exchange of Security3		Fair Value December 31, 2023		YTD Unrealized Appreciation (Depreciation) on Investments held at period end
First lien loans	$	1,000,984	$	(9,874)	$	307,934	$	(139,778)	$	7,925	$	(13,875)	$	(6,961)	$	1,146,355	$	(4,920)
Second lien loans	35,820		989		187		(2,596)		214		—		—		34,614		987
Subordinated debt	791		(28)		—		(20)		25		—		—		768		(28)
Preferred equity	63,393		(5,532)		7,886		—		—		(273)		3,170		68,644		(5,430)
Common equity & warrants	54,144		622		5,757		—		—		(3,858)		3,791		60,456		390
Total Investments	$	1,155,132	$	(13,823)	$	321,764	$	(142,394)	$	8,164	$	(18,006)	$	—	$	1,310,837	$	(9,001)

1Includes purchases of new investments, as well as discount accretion on existing investments.

2Included are distributions-in-kind of investments received in connection with the dissolution and liquidation of I-45 SLF LLC ("I-45 SLF"). See Note 11 - Related Party Transactions for more information.

3Includes $3.8 million of cost basis allocated from first lien debt to warrants.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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