Capital Southwest Venture Corporation
12900 Preston Road, Suite 700
Dallas, Texas 75230
(214) 233-8242 Telephone Fax (214) 233-7362
November 20, 1996
Securities and Exchange Commission
450 5th Street, N.W.
Judiciary Plaza
Washington, DC 20549
Gentlemen:
Pursuant to regulations of the Securities and Exchange Commission, submitted for
filing on behalf of Capital Southwest Venture Corporation is the Company's
Semi-Annual Report, Form N-SAR for Registered Investment Companies, for the
period year ended September 30, 1996.
This filing is being effected by direct transmission to the Commission's EDGAR
System.
Sincerely,
/s/ Susan Patterson
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Susan Patterson
Controller
FORM N-SAR
SEMI-ANNUAL REPORT
FOR REGISTERED INVESTMENT COMPANIES
Report for six month period ending: 09/30/96 (a)
or fiscal year ending: (b)
Is this a transition report? (Y/N) N
-------
Is this an amendment to a previous filing? (Y/N) N
-------
Those items or sub-items with a box after the item number should be completed only if the answer has changed from the previous
filing on this form.
1. A. Registrant Name: Capital Southwest Venture Corporation
B. File Number: 811-1947
C. Telephone Number: (972) 233-8242
2. A. Street: 12900 Preston Road, Suite 700
B. City: Dallas C. State: Texas D. Zip Code: 75230 Zip Ext: 1314
E. Foreign Country: Foreign Postal Code:
3. Is this the first filing on this form by Registrant? (Y/N) N
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4. Is this the last filing on this form by Registrant? (Y/N) N
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5. Is Registrant a small business investment company (SBIC)? (Y/N) Y
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6. Is Registrant a unit investment trust(UIT)? (Y/N) N
[If answer is "Y" (Yes), complete only items 89 through 110.] --------------------
7. A. Is Registrant a series or multiple portfolio company? (Y/N) N
--------------------
[If answer is "N" (No), go to item 8.]
B. How many separate series or portfolios did Registrant have at the end of the period? -------
SCREEN NUMBER: 01 PAGE NUMBER: 01 SEC2100 (5/90)
If filing more than one
Page 40, "X" box:
For period ending 09/30/96
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File Number 811-1947
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FINANCIAL INFORMATION
97. A. How many months do the answers to items 97 and 98 cover? 6 Months
-----------
For period covered by this form
($000's omitted)
--------------------------------
INCOME
517
B. Net interest income __________________________________________ $ ________
627
C. Net dividend income __________________________________________ $ ________
D. Account maintenance fees _____________________________________ $ ________
E. Net other income _____________________________________________ $ ________
EXPENSES
F. Gross advisory fees __________________________________________ $ ________
G. Gross administrator(s) fees __________________________________ $ ________
(Negative answers allowed for 97H through 97S)
H. Salaries and other compensation ______________________________ $ ________
I. Shareholder servicing agent fees______________________________ $ ________
J. Custodian fees _______________________________________________ $ ________
K. Postage ______________________________________________________ $ ________
L. Printing expenses ____________________________________________ $ ________
M. Directors' fees ______________________________________________ $ ________
N. Registration fees ____________________________________________ $ ________
6
O. Taxes ________________________________________________________ $ ________
431
P. Interest _____________________________________________________ $ ________
Q. Bookkeeping fees paid to anyone performing this service ______ $ ________
2
R. Auditing fees ________________________________________________ $ ________
S. Legal fees ___________________________________________________ $ ________
SCREEN NUMBER: 48 PAGE NUMBER: 40 SEC2100 (5/90)
If filing more than one
Page 41, "X" box:
For period ending 09/30/96
---------
File Number 811-1947
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Expenses (Negative answers allowed on this screen for
97T through 97W and 97Z only)
For period covered by this form
($000's omitted)
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T. Marketing/distribution payments including payments pursuant
to a Rule 12b-1 plan _____________________________________________________ $______________
U. Amortization of organization expenses__________________________________________ $______________
V. Shareholder meeting expenses __________________________________________________ $______________
64
W. Other expenses ________________________________________________________________ $ _____________
503
X. Total expenses ________________________________________________________________ $ _____________
Y. Expense reimbursements ________________________________________________________ $ _____________
641 *
Z. Net investment income ________________________________________________________ $ _____________
AA. Realized capital gains ________________________________________________________ $ _____________
BB. Realized capital losses________________________________________________________ $ _____________
1,650
CC. 1. Net unrealized appreciation during the period _____________________________ $ _____________
2. Net unrealized depreciation during the period _____________________________ $ _____________
DD. Total income dividends for which record date passed during the period $ _____________
EE. Total capital gains distributions for which record date passed during the period $ _____________
98. Payments per share outstanding during the entire current period:
A. Dividends from net investment income ___________________________________________ $ _____________ **
NOTE: Show in fractions of a cent if so declared.
B. Distributions of capital gains ________________________________________________ $ _____________ **
C. Other distributions ___________________________________________________________ $ _____________
NOTE: Show in fractions of a cent if so declared.
* Negative answer permitted in this field.
** Items 98A and 98B should be of the form mn.nnnn (where n = integer).
SCREEN NUMBER: 49 PAGE NUMBER: 41 SEC2100 (5/90)
If filing more than one
Page 42, "X" box:
For period ending 09/30/96
---------
File Number 811-1947
---------
As of the end of
current reporting period
(000's omitted)
------------------------
99. Assets, liabilities, shareholders' equity:
664
A. Cash ______________________________________________________________________ $ _________
B. Repurchase agreements _____________________________________________________ $ _________
3,839
C. Short-term debt securities other than repurchase agreements _______________ $ _________
4,759
D. Long-term debt securities including convertible debt ______________________ $ _________
4,748
E. Preferred, convertible preferred and adjustable rate preferred stock ______ $ _________
71,778
F. Common stock ______________________________________________________________ $ _________
G. Options on equities _______________________________________________________ $ _________
H. Options on all futures ____________________________________________________ $ _________
I. Other investments _________________________________________________________ $ _________
J. Receivables from portfolio instruments sold _______________________________ $ _________
13
K. Receivables from affiliated persons _______________________________________ $ _________
42
L. Other receivables _________________________________________________________ $ _________
54
M. All other assets _________________________________________________________ $ _________
85,897
N. Total assets _____________________________________________________________ $ _________
SCREEN NUMBER: 50 PAGE NUMBER: 42 SEC2100 (5/90)
If filing more than one
Page 43, "X" box:
For period ending 09/30/96
---------
File Number 811-1947
---------
As of the end of
current reporting period
(000's omitted except for
per share amounts and
number of accounts)
-------------------
O. Payables for portfolio instruments purchased ______________________________________ $ ___________
33
P. Amounts owed to affiliated persons ________________________________________________ $ ___________
5,000
Q. Senior long-term debt _____________________________________________________________ $ ___________
22,141
R. All other liabilities _____________________________________________________________ $ ___________
S. Senior equity _____________________________________________________________________ $ ___________
58,723
T. Net assets of common shareholders _________________________________________________ $ ___________
1,000
U. Number of shares outstanding ______________________________________________________ $ ___________
58.72 *
V. Net asset value per share (to nearest cent) _______________________________________ $ ___________
W. Mark-to-market net asset value per share for money market _________________________
funds only (to 4 decimals) $ ___________ ***
1
X. Total number of shareholder accounts ______________________________________________ $ ___________
Y. Total value of assets in segregated accounts ______________________________________ $ ___________
57,709
100. Monthly average net assets during current reporting period ($000's omitted) ________________ $ ___________
101. Market price per share at end of period ____________________________________________________ $ ___________
* Net asset value per share must be of the form nnn.nn (where n = integer).
** Value must be of the form nnn.nnnn (where n = integer).
SCREEN NUMBER: 51 PAGE NUMBER: 43 SEC2100 (5/90)-
If filing more than one
Page 44 "X" box:
For period ending 09/30/96
----------
File Number 811-1947
---------
102. A. Is the Registrant filing any of the following attachments with the current
filing of Form N-SAR? Y
---------
Y/N
NOTE: If answer is "Y" (Yes), mark those items below being filed as an
attachment to this form or incorporate by reference.
y
B. Matters submitted to a vote of security holders ____________________________ _________
Y
C. Policies with respect to security investments ______________________________ _________
D. Legal proceedings___________________________________________________________ _________
E. Changes in security for debt _______________________________________________ _________
F. Defaults and arrears on senior securities __________________________________ _________
G. Changes in control of Registrant____________________________________________ _________
H. Terms of new or amended securities _________________________________________ _________
I. Revaluation of assets or restatement of capital share account ______________ _________
J. Changes in Registrant's certifying accountant ______________________________ _________
K. Changes in accounting principles and practices _____________________________ _________
L. Mergers ____________________________________________________________________ _________
M. Actions required to be reported pursuant to Rule 2a-7 ______________________ _________
N. Transactions effected pursuant to Rule 10f-3 _______________________________ _________
O. Information required to be filed pursuant to existing exemptive orders _____ _________
Attachment Information (Cont. on Screen 53)
SCREEN NUMBER: 52 PAGE NUMBER: 44 SEC2100 (5/90
CAPITAL SOUTHWEST VENTURE CORPORATION
Form N-SAR
For the period ended September 30, 1996
File Number 811-1947
_____________________________________
Sub-Item 102.B. Matters submitted to a vote of security holders
- - --------------- -----------------------------------------------
The Company's Annual Meeting of Stockholders was held on July 15, 1996, with the following results of elections and approval:
Votes Cast
----------
Against/ Abstentions/
For Withheld Non-Votes
--- -------- ---------
a. Amendment of the fundamental investment policies of
Capital Southwest Venture Corporation was approved. 2,495,155 60,498 1,211,398
Sub-Item 102.C. Policies with respect to security investments
- - --------------- ---------------------------------------------
Sub-Item 102.C. Policies with respect to security investments
The amendment of the fundamental investment policies of Capital Southwest Venture Corporation on July 15, 1996, affected only
paragraph A.(2) of its fundamental investment policies. This paragraph as it was amended is set forth below with a line drawn
through deletions (--deletions--) and a line drawn below additions (additions):
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A.(2) CSVC may borrow from Capital Southwest Corporation ("CSC"), from other sources of capital, and from the Small
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Business Administration ("SBA") and/or institutional lenders whose loans are guaranteed by SBA, on whatever basis SBA
may from time to time establish for lending or providing guarantees for indebtedness of small business investment
companies --provided that CSC will not guarantee any such borrowing.-- However, CSVC may not borrow from any person
other than CSC, if CSC has outstanding publicly distributed senior securities.--In no event will CSVC borrowing in
the aggregate exceed four times the amount of its paid in capital and surplus.-- All borrowing by CSVC will conform to
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the requirements of the 1940 Act and its rules and regulations, as modified by any exemptive orders issued thereunder.
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The affirmative vote of the holders of a majority of the Corporation's outstanding voting securities (Common Stock),
as such term is defined in the 1940 Act, was required to approve the proposed amendment to the fundamental investment
policies of CSVC.
This report is signed on behalf of the Registrant, in the City of Dallas, State of Texas, on the 20th of November, 1996.
CAPITAL SOUTHWEST VENTURE CORPORATION
/s/ Tim Smith
By: -----------------------------------------------
Tim Smith, Vice President & Secretary-Treasurer
/s/ William R. Thomas
Witness: ------------------------------------------------
William R. Thomas, President