0000017313-23-000006 | 10-Q | XBRL Viewer

Investments at fair value

Principal

$ 4,188

$ 4,282

Cost

4,172

4,265

$ 4,012

$ 4,239

Investment interest rate

9.50%

19.00%

^[1],[2]

[1]

Investment is on non-accrual status as of March 31, 2022, meaning the Company has ceased to recognize interest income on the investment.

[2]

The majority of investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”), Secured Overnight Financing Rate ("SOFR") or Prime (“P”) and reset daily (D), monthly (M), quarterly (Q), or semiannually (S). For each investment, the Company has provided the spread over LIBOR, SOFR or Prime and the current contractual interest rate in effect at March 31, 2022. Certain investments are subject to an interest rate floor. Certain investments, as noted, accrue payment-in-kind ("PIK") interest.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) (Parenthetical) - USD ($)
$ in Thousands

Dec. 31, 2022

Mar. 31, 2022

Shares (in shares)

1,051

Investment interest rate

9.50%

19.00%

^[1],[2]

Percent of net assets

27.70%

31.40%

Principal

$ 4,188

$ 4,282

Cost

4,172

4,265

Total Investments

$ 4,012

$ 4,239

I-45 SLF LLC

INFOLINKS MEDIA BUYCO, LLC

Ownership percent

80.00%

^{[3],[4],[5],[6]}

LIGHTNING INTERMEDIATE II, LLC (DBA VIMERGY)

1.68%

^{[7],[8],[9],[10]}

1.68%

^{[3],[5],[6],[11]}

ALLIANCE SPORTS GROUP, L.P.

^[7],[8],[9]

0.88%

3.88%

^[7]

3.88%

^[3]

ITA Holdings Group, LLC

9.25%

^{[3],[4],[5],[11]}

[1]	Investment is on non-accrual status as of March 31, 2022, meaning the Company has ceased to recognize interest income on the investment.
[2]	The majority of investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”), Secured Overnight Financing Rate ("SOFR") or Prime (“P”) and reset daily (D), monthly (M), quarterly (Q), or semiannually (S). For each investment, the Company has provided the spread over LIBOR, SOFR or Prime and the current contractual interest rate in effect at March 31, 2022. Certain investments are subject to an interest rate floor. Certain investments, as noted, accrue payment-in-kind ("PIK") interest.
[3]	All of the Company’s investments and the investments of SBIC I (as defined below), unless otherwise noted, are pledged as collateral for the Company’s senior secured credit facility or in support of the SBA-guaranteed debentures to be issued by Capital Southwest SBIC I, LP, our wholly-owned subsidiary that operates as a small business investment company ("SBIC I"), respectively.
[4]	Income producing through dividends or distributions.
[5]	Indicates assets that are considered "non-qualifying assets” under section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets. As of March 31, 2022, approximately 12.8% of the Company's assets are non-qualifying assets.
[6]	The investment has an unfunded commitment as of March 31, 2022. Refer to Note 11 - Commitments and Contingencies for further discussion.
[7]	All of the Company’s investments and the investments of SBIC I (as defined below), unless otherwise noted, are pledged as collateral for the Company’s senior secured credit facility or in support of the SBA-guaranteed debentures to be issued by Capital Southwest SBIC I, LP, our wholly-owned subsidiary that operates as a small business investment company ("SBIC I"), respectively.
[8]	Indicates assets that are not considered "qualifying assets" under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets. As of December 31, 2022, approximately 13.5% of the Company's assets were non-qualifying assets.
[9]	Investment is held through a wholly-owned taxable subsidiary.
[10]	The investment has an unfunded commitment as of December 31, 2022. Refer to Note 10 - Commitments and Contingencies for further discussion.
[11]	Investment is held through a wholly-owned taxable subsidiary.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) (Parenthetical Footnotes) - USD ($) $ in Millions	Dec. 31, 2022	Mar. 31, 2022
Schedule of Investments [Line Items]
Percent of investment assets	4.10%	6.20%
Percent of net assets	27.70%	31.40%
Contribution percentage in non-qualified assets	13.50%	12.80%
Gross unrealized appreciation	$ 66.9	$ 67.8
Gross unrealized depreciation	66.7	61.7
Net unrealized appreciation (depreciation)	0.2	6.1
Cost of investments	$ 1,150.6	$ 852.4
Percent of total assets	95.70%	96.20%

ORGANIZATION AND BASIS OF PRESENTATION	9 Months Ended
ORGANIZATION AND BASIS OF PRESENTATION	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND BASIS OF PRESENTATION	ORGANIZATION AND BASIS OF PRESENTATION References in this Quarterly Report on Form 10-Q to “we,” “our,” “us,” “CSWC,” or the “Company” refer to Capital Southwest Corporation, unless the context requires otherwise. Organization Capital Southwest Corporation is an internally managed investment company that specializes in providing customized financing to middle market companies in a broad range of investment segments located primarily in the United States. Our common stock currently trades on The Nasdaq Global Select Market under the ticker symbol “CSWC.” CSWC was organized as a Texas corporation on April 19, 1961. On March 30, 1988, CSWC elected to be regulated as a business development company (“BDC”) under the 1940 Act. In order to comply with the 1940 Act requirements for a BDC, we must, among other things, generally invest at least 70% of our assets in eligible portfolio companies and limit the amount of leverage we incur. We have elected, and intend to qualify annually, to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”) under Subchapter M of the U.S. Internal Revenue Code of 1986, as amended (the “Code”). As such, we generally will not have to pay U.S. federal income tax at corporate rates on any ordinary income or capital gains that we distribute to our shareholders as dividends. To continue to maintain our RIC tax treatment, we must meet specified source-of-income and asset diversification requirements and timely distribute annually at least 90% of our net ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any. Depending on the level of taxable income earned in a tax year, we may choose to carry forward taxable income in excess of current year distributions into the next year and pay a 4% U.S. federal excise tax on such income. Any such carryover taxable income must be distributed through a dividend declared prior to filing the final tax return related to the year that generated such taxable income. CSWC has a direct wholly-owned subsidiary that has been elected to be a taxable entity (the “Taxable Subsidiary”). The primary purpose of the Taxable Subsidiary is to permit CSWC to hold certain interests in portfolio companies that are organized as limited liability companies, or LLCs (or other forms of pass-through entities), and still allow us to satisfy the RIC tax requirement that at least 90% of our gross income for U.S. federal income tax purposes must consist of qualifying investment income. The Taxable Subsidiary is taxed at normal corporate tax rates based on its taxable income. We focus on investing in companies with histories of generating revenues and positive cash flow, established market positions and proven management teams with strong operating discipline. Our core business is to target senior debt investments and equity investments in lower middle market (“LMM”) companies. We also opportunistically target first and second lien loans in upper middle market (“UMM”) companies. Our target LMM companies typically have annual earnings before interest, taxes, depreciation and amortization (“EBITDA”) generally between $3.0 million and $20.0 million, and our LMM investments generally range in size from $5.0 million to $35.0 million. Our UMM investments generally include first and second lien loans in companies with EBITDA generally greater than $20.0 million and typically range in size from $5.0 million to $20.0 million. We make available significant managerial assistance to the companies in which we invest as we believe that providing managerial assistance to an investee company is critical to its business development activities. On April 20, 2021, our wholly owned subsidiary, Capital Southwest SBIC I, LP (“SBIC I”) received a license from the U.S. Small Business Administration (the “SBA”) to operate as a small business investment company ("SBIC") under Section 301(c) of the Small Business Investment Act of 1958, as amended. SBIC I has an investment strategy substantially similar to ours and makes similar types of investments in accordance with SBA regulations. SBIC I and its general partner are consolidated for financial reporting purposes under generally accepted accounting principles in the United States ("U.S. GAAP"), and the portfolio investments held by it are included in the consolidated financial statements. Basis of Presentation The consolidated financial statements have been prepared in accordance with U.S. GAAP. We meet the definition of an investment company and follow the accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 – Financial Services – Investment Companies (“ASC 946”). Under rules and regulations applicable to investment companies, we are generally precluded from consolidating any entity other than another investment company, subject to certain exceptions. One of the exceptions to this general principle occurs if the investment company has an investment in an operating company that provides services to the investment company. Accordingly, the consolidated financial statements include the Taxable Subsidiary. The consolidated financial statements are presented in conformity with U.S. GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual consolidated financial statements prepared in accordance with U.S. GAAP are omitted. In the opinion of our management, the unaudited consolidated financial results included herein contain all adjustments, consisting solely of normal recurring accruals, considered necessary for the fair presentation of consolidated financial statements for the interim periods included herein. The results of operations for the three and nine months ended December 31, 2022 are not necessarily indicative of the operating results to be expected for the full fiscal year. Also, the unaudited consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal years ended March 31, 2022 and 2021. Consolidated financial statements prepared on a U.S. GAAP basis require management to make estimates and assumptions that affect the amounts and disclosures reported in the consolidated financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. Portfolio Investment Classification We classify our investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, “Control Investments” are generally defined as investments in which we own more than 25% of the voting securities; “Affiliate Investments” are generally defined as investments in which we own between 5% and 25% of the voting securities, and the investments are not classified as “Control Investments”; and “Non-Control/Non-Affiliate Investments” are generally defined as investments that are neither “Control Investments” nor “Affiliate Investments.” Under the 1940 Act, a BDC must meet certain requirements, including investing at least 70% of its total assets in qualifying assets. As of December 31, 2022, the Company has 86.5% of its assets in qualifying assets. The principal categories of qualifying assets relevant to our business are: (1)securities purchased in transactions not involving any public offering from the issuer of such securities, which issuer (subject to certain limited exceptions) is an "eligible portfolio company," or from any person who is, or has been during the preceding 13 months, an affiliated person of an eligible portfolio company, or from any other person, subject to such rules as may be prescribed by the Securities and Exchange Commission ("SEC"); (2)securities of any eligible portfolio company that we control; (3)securities purchased in a private transaction from a U.S. issuer that is not an investment company or from an affiliated person of the issuer, or in transactions incident thereto, if the issuer is in bankruptcy and subject to reorganization or if the issuer, immediately prior to the purchase of its securities was unable to meet its obligations as they came due without material assistance other than conventional lending or financing arrangements; (4)securities of an eligible portfolio company purchased from any person in a private transaction if there is no readily available market for such securities and we already own 60% of the outstanding equity of the eligible portfolio company; (5)securities received in exchange for or distributed on or with respect to securities described in (1) through (4) above, or pursuant to the exercise of warrants or rights relating to such securities; and (6)cash, cash equivalents, U.S. government securities or high-quality debt securities maturing in one year or less from the time of investment. Additionally, in order to qualify for RIC tax treatment for U.S. federal income tax purposes, we must, among other things meet the following requirements: (1) continue to maintain our election as a BDC under the 1940 Act at all times during each taxable year; (2) derive in each taxable year at least 90% of our gross income from dividends, interest, payments with respect to certain securities, loans, gains from the sale of stock or other securities, net income from certain "qualified publicly traded partnerships," or other income derived with respect to our business of investing in such stock or securities; and (3) diversify our holdings in accordance with two diversification requirements: (a) diversify our holdings such that at the end of each quarter of the taxable year at least 50% of the value of our assets consists of cash, cash equivalents, U.S. Government securities, securities of other RICs, and such other securities if such other securities of any one issuer do not represent more than 5% of the value of our assets or more than 10% of the outstanding voting securities of the issuer; and (b) diversify our holdings such that no more than 25% of the value of our assets is invested in the securities, other than U.S. government securities or securities of other RICs, (i) of one issuer, (ii) of two or more issuers that are controlled, as determined under applicable Code rules, by us and that are engaged in the same or similar or related trades or businesses or (iii) of certain "qualified publicly traded partnerships" (collectively, the "Diversification Requirements"); The two Diversification Requirements must be satisfied quarterly. If a RIC satisfies the Diversification Requirements for one quarter, and then, due solely to fluctuations in market value, fails to meet one of the Diversification Requirements in the next quarter, it retains RIC tax treatment. A RIC that fails to meet the Diversification Requirements as a result of a nonqualified acquisition may be subject to excess taxes unless the nonqualified acquisition is disposed of and the Diversification Requirements are satisfied within 30 days of the close of the quarter in which the Diversification Requirements are failed. For the quarter ended December 31, 2022, we satisfied all RIC requirements and have 11.2% in nonqualified assets according to measurement criteria established in Section 851(d) of the Code.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2022
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed in the preparation of the consolidated financial statements of CSWC. Fair Value Measurements We account for substantially all of our financial instruments at fair value in accordance with ASC Topic 820 – Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements, including the categorization of financial instruments into a three-level hierarchy based on the transparency of valuation inputs. ASC 820 requires disclosure of the fair value of financial instruments for which it is practical to estimate such value. We believe that the carrying amounts of our financial instruments such as cash, receivables and payables approximate the fair value of these items due to the short maturity of these instruments. This is considered a Level 1 valuation technique. The carrying value of our credit facility approximates fair value (Level 3 input). See Note 4 below for further discussion regarding the fair value measurements and hierarchy. Investments Investments are stated at fair value and are reviewed and approved by our Board of Directors as described in the Notes to the Consolidated Schedule of Investments and Notes 3 and 4 below. Investments are recorded on a trade date basis. Net Realized Gains or Losses and Net Unrealized Appreciation or Depreciation Realized gains or losses are measured by the difference between the net proceeds from the sale or redemption of an investment or a financial instrument and the cost basis of the investment or financial instrument, without regard to unrealized appreciation or depreciation previously recognized, and includes investments written-off during the period net of recoveries and realized gains or losses from in-kind redemptions. Net unrealized appreciation or depreciation reflects the net change in the fair value of the investment portfolio and financial instruments and the reclassification of any prior period unrealized appreciation or depreciation on exited investments and financial instruments to realized gains or losses. Cash and Cash Equivalents Cash and cash equivalents, which consist of cash and highly liquid investments with an original maturity of three months or less at the date of purchase, are carried at cost, which approximates fair value. Cash may be held in a money market fund from time to time, which is a Level 1 security. Cash and cash equivalents includes deposits at financial institutions. We deposit our cash balances in financial institutions and, at times, such balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. At December 31, 2022 and March 31, 2022, cash balances totaling $20.4 million and $10.2 million, respectively, exceeded FDIC insurance limits, subjecting us to risk related to the uninsured balance. All of our cash deposits are held at large established high credit quality financial institutions and management believes that the risk of loss associated with any uninsured balances is remote. Segment Information We operate and manage our business in a singular segment. As an investment company, we invest in portfolio companies in various industries and geographic areas as discussed in Note 3. Consolidation As permitted under Regulation S-X and ASC 946, we generally do not consolidate our investment in a portfolio company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to CSWC. Accordingly, we consolidate the results of the Taxable Subsidiary and SBIC I. All intercompany balances have been eliminated upon consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. We have identified investment valuation and revenue recognition as our most critical accounting estimates. Interest and Dividend Income Interest and dividend income is recorded on an accrual basis to the extent amounts are expected to be collected. Dividend income is recognized on the date dividends are declared by the portfolio company or at the point an obligation exists for the portfolio company to make a distribution. Discounts/premiums received to par on loans purchased are capitalized and accreted or amortized into income over the life of the loan using the effective interest method. In accordance with our valuation policy, accrued interest and dividend income is evaluated quarterly for collectability. When we do not expect the debtor to be able to service all of its debt or other obligations, we will generally establish a reserve against interest income receivable, thereby placing the loan or debt security on non-accrual status, and cease to recognize interest income on that loan or debt security until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a loan or debt security’s status significantly improves regarding its ability to service debt or other obligations, it will be restored to accrual basis. As of December 31, 2022, investments on non-accrual status represented approximately 0.3% of our total investment portfolio's fair value and approximately 1.4% of its cost. As of March 31, 2022, investments on non-accrual status represented approximately 1.5% of our total investment portfolio's fair value and approximately 2.6% of its cost. To maintain RIC tax treatment, non-cash sources of income such as accretion of interest income may need to be paid out to shareholders in the form of distributions, even though CSWC may not have collected the interest income. For the three and nine months ended December 31, 2022, approximately 3.2% and 3.5%, respectively, of CSWC's total investment income was attributable to non-cash interest income for the accretion of discounts associated with debt investments, net of any premium reduction. For the three and nine months ended December 31, 2021, approximately 3.4% and 3.6%, respectively, of CSWC's total investment income was attributable to non-cash interest income for the accretion of discounts associated with debt investments, net of any premium reduction. Payment-in-Kind Interest The Company currently holds, and expects to hold in the future, some investments in its portfolio that contain PIK interest provisions. The PIK interest, computed at the contractual rate specified in each loan agreement, is added to the principal balance of the loan, rather than being paid to the Company in cash, and is recorded as interest income. Thus, the actual collection of PIK interest may be deferred until the time of debt principal repayment. PIK interest, which is a non-cash source of income, is included in the Company’s taxable income and therefore affects the amount the Company is required to distribute to shareholders to maintain its qualification as a RIC for U.S. federal income tax purposes, even though the Company has not yet collected the cash. Generally, when current cash interest and/or principal payments on a loan become past due, or if the Company otherwise does not expect the borrower to be able to service its debt and other obligations, the Company will place the investment on non-accrual status and will generally cease recognizing PIK interest income on that loan for financial reporting purposes until all principal and interest have been brought current through payment or due to a restructuring such that the interest income is deemed to be collectible. The Company writes off any accrued and uncollected PIK interest when it is determined that the PIK interest is no longer collectible. As of December 31, 2022 and March 31, 2022, we have not written off any accrued and uncollected PIK interest from prior periods. For the three and nine months ended December 31, 2022, we had three investments for which we stopped accruing PIK interest. For the three and nine months ended December 31, 2021, we had two investments for which we stopped accruing PIK interest. For the three and nine months ended December 31, 2022, approximately 4.6% and 4.4%, respectively, of CSWC’s total investment income was attributable to non-cash PIK interest income. For the three and nine months ended December 31, 2021, approximately 3.6% and 4.4%, respectively, of CSWC’s total investment income was attributable to non-cash PIK interest income. Fee Income Fee income, generally collected in advance, includes fees for administration and valuation services rendered by the Company. These fees are typically charged annually and are amortized into income over the year. The Company recognizes nonrecurring fees, including prepayment penalties, waiver fees and amendment fees, as fee income when earned. In addition, the Company may also be entitled to an exit fee that is amortized into income over the life of the loan. Loan exit fees to be paid at the termination of the loan are accreted into fee income over the contractual life of the loan. Warrants In connection with the Company's debt investments, the Company may receive warrants or other equity-related securities from the borrower. The Company determines the cost basis of warrants based upon their respective fair values on the date of receipt in proportion to the total fair value of the debt and warrants received. Any resulting difference between the face amount of the debt and its recorded fair value resulting from the assignment of value to the warrants is treated as original issue discount (“OID”), and accreted into interest income using the effective interest method over the term of the debt investment. Debt Issuance Costs Debt issuance costs include commitment fees and other costs related to CSWC’s senior secured credit facility, its unsecured notes (as discussed further in Note 5) and the debentures guaranteed by the SBA (the "SBA Debentures"). The costs in connection with the credit facility have been capitalized and are amortized into interest expense over the term of the credit facility. The costs in connection with the unsecured notes and the SBA Debentures are a direct deduction from the related debt liability and amortized into interest expense over the term of the January 2026 Notes (as defined below), the October 2026 Notes (as defined below) and the SBA Debentures. Deferred Offering Costs Deferred offering costs include registration expenses related to our shelf registration statement and expenses related to the launch of the "at-the-market" ("ATM") program through which we can sell, from time to time, shares of our common stock (the "Equity ATM Program"). These expenses consist primarily of SEC registration fees, legal fees and accounting fees incurred related thereto. These expenses are included in other assets on the Consolidated Statements of Assets and Liabilities. Upon the completion of an equity offering or a debt offering, the deferred expenses are charged to additional paid-in capital or debt issuance costs, respectively. If there are any deferred offering costs remaining at the expiration of the shelf registration statement, these deferred costs are charged to expense. Realized Losses on Extinguishment of Debt Upon the repayment of debt obligations that are deemed to be extinguishments, the difference between the principal amount due at maturity adjusted for any unamortized debt issuance costs is recognized as a loss (i.e., the unamortized debt issuance costs and any "make-whole" premium payment (as discussed in Note 5)) are recognized as a loss upon extinguishment of the underlying debt obligation). Leases The Company is obligated under an operating lease pursuant to which it is leasing an office facility from a third party with a remaining term of approximately 10 years. The operating lease is included as an operating lease right-of-use ("ROU") asset and operating lease liability in the accompanying Consolidated Statements of Assets and Liabilities. The Company does not have any financing leases. The ROU asset represents the Company’s right to use an underlying asset for the lease term and the operating lease liability represents the Company’s obligation to make lease payments arising from such lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the remaining lease term. The Company’s lease does not provide an implicit discount rate, and as such the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of the remaining lease payments. Lease expense is recognized on a straight-line basis over the remaining lease term. Federal Income Taxes CSWC has elected, and intends to qualify annually, to be treated for U.S. federal income tax purposes as a RIC under Subsection M of the Code. By meeting these requirements, we will not be subject to U.S. federal income taxes at corporate rates on ordinary income or capital gains timely distributed to shareholders. In order to qualify as a RIC, the Company is required to timely distribute to its shareholders at least 90% of investment company taxable income, as defined by the Code, each year. Investment company taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses. Investment company taxable income generally excludes net unrealized appreciation or depreciation, as investment gains and losses are not included in investment company taxable income until they are realized. Depending on the level of taxable income or capital gains earned in a tax year, we may choose to carry forward taxable income or capital gains in excess of current year distributions into the next year and pay a 4% U.S. federal excise tax on such income. Any such carryover taxable income or capital gains must be distributed through a dividend declared on or prior to the later of (1) the filing of the U.S. federal income tax return for the applicable fiscal year and (2) the fifteenth day of the ninth month following the close of the year in which such taxable income was generated. In lieu of distributing our net capital gains for a year, we may decide to retain some or all of our net capital gains. We will be required to pay a 21% corporate rate U.S. federal income tax on any such retained net capital gains. We may elect to treat such retained capital gain as a deemed distribution to shareholders. Under such circumstances, shareholders will be required to include their share of such retained capital gain in income, but will receive a credit for the amount of U.S. federal income tax paid at corporate rates with respect to their shares. As an investment company that qualifies as a RIC, federal income taxes payable on security gains that we elect to retain are accrued only on the last day of our tax year, December 31. Any net capital gains actually distributed to shareholders and properly reported by us as capital gain dividends are generally taxable to the shareholders as long-term capital gains. See Note 6 for further discussion. The Taxable Subsidiary, a wholly-owned subsidiary of CSWC, is not a RIC and is required to pay taxes at the corporate rate of 21%. For tax purposes, the Taxable Subsidiary has elected to be treated as a taxable entity, and therefore is not consolidated for tax purposes and is taxed at normal corporate tax rates based on taxable income and, as a result of its activities, may generate an income tax provision or benefit. The taxable income, or loss, of the Taxable Subsidiary may differ from its book income, or loss, due to temporary book and tax timing differences and permanent differences. This income tax provision, or benefit, if any, and the related tax assets and liabilities, are reflected in our consolidated financial statements. Management evaluates tax positions taken or expected to be taken in the course of preparing the Company’s consolidated financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions with respect to tax at the CSWC level not deemed to meet the “more-likely-than-not” threshold would be recorded as an expense in the current year. Management’s conclusions regarding tax positions will be subject to review and may be adjusted at a later date based on factors including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof. The Company has concluded that it does not have any uncertain tax positions that meet the recognition of measurement criteria of ASC 740, Income Taxes, ("ASC 740") for the current period. Also, we account for interest and, if applicable, penalties for any uncertain tax positions as a component of income tax provision. No interest or penalties expense was recorded during the three and nine months ended December 31, 2022 and 2021. Deferred Taxes Deferred tax assets and liabilities are recorded for losses or income at our taxable subsidiaries using statutory tax rates. A valuation allowance is provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. ASC 740 requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation was enacted. See Note 6 for further discussion. Stock-Based Compensation We account for our share-based compensation using the fair value method, as prescribed by ASC Topic 718, Compensation – Stock Compensation. Accordingly, we recognize share-based compensation cost on a straight-line basis for all share-based payments awards granted to employees. For restricted stock awards, we measure the fair value based upon the market price of our common stock on the date of the grant. For restricted stock awards, we amortize this fair value to share-based compensation expense over the vesting term. We recognize forfeitures as they occur. The unvested shares of restricted stock awarded pursuant to CSWC’s equity compensation plans are participating securities and are included in the basic and diluted earnings per share calculation. The right to grant restricted stock awards under the 2010 Plan terminated on July 18, 2021, ten years after the date that the 2010 Restricted Stock Award Plan (the “2010 Plan”) was approved by the Company’s shareholders pursuant to its terms. In connection with the termination of the 2010 Plan, the Company’s Board of Directors and shareholders approved the Capital Southwest Corporation 2021 Employee Restricted Stock Award Plan (the "2021 Employee Plan"), which became effective on July 28, 2021, as part of the compensation package for its employees, the terms of which are, in all material respects, identical to the 2010 Plan. On July 19, 2021, we received an exemptive order that supersedes the prior exemptive order relating to the 2010 Plan (the “Order”) to permit the Company to (i) issue restricted stock as part of the compensation package for its employees in the 2021 Employee Plan, and (ii) withhold shares of the Company’s common stock or purchase shares of the Company’s common stock from the participants to satisfy tax withholding obligations relating to the vesting of restricted stock pursuant to the 2021 Employee Plan. In addition, the Company's Board of Directors and shareholders approved the Capital Southwest Corporation 2021 Non-Employee Director Restricted Stock Plan (the "Non-Employee Director Plan"), which became effective on July 27, 2022, as part of the compensation package for non-employee directors of the Board of Directors. In connection therewith, on May 16, 2022, we received an exemptive order that supersedes the Order (the "Superseding Order") and covers both employees and non-employee directors of the Board of Directors. Shareholder Distributions Distributions to common shareholders are recorded on the ex-dividend date. The amount of distributions, if any, is determined by the Board of Directors each quarter and is generally based upon the earnings estimated by management. Net realized capital gains, if any, generally are distributed, although the Company may decide to retain such capital gains for investment. Presentation Presentation of certain amounts in the consolidated financial statements for the prior year comparative consolidated financial statements is updated to conform to the current period presentation. Recently Issued or Adopted Accounting Standards In March 2020, the FASB issued ASU 2020-04, "Reference rate reform (Topic 848)—Facilitation of the effects of reference rate reform on financial reporting." The amendments in this update provide optional expedients and exceptions for applying U.S. GAAP to certain contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform and became effective upon issuance for all entities. The Company has agreements that have LIBOR as a reference rate with certain portfolio companies and certain lenders. Many of these agreements include an alternative successor rate or language for choosing an alternative successor rate when LIBOR reference is no longer considered to be appropriate. With respect to other agreements, the Company intends to work with its portfolio companies and certain lenders to modify agreements to choose an alternative successor rate. Contract modifications are required to be evaluated in determining whether the modifications result in the establishment of new contracts or the continuation of existing contracts. On December 21, 2022, the FASB issued ASU 2022-06 "Reference rate reform (Topic 848)—Deferral of the Sunset Date of Topic 848," which defers the sunset date of ASC 848 until December 31, 2024. ASU 2022-06 became effective upon issuance. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after December 31, 2024, except for hedging transactions as of December 31, 2024, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The Company does not believe it will have a material impact on its consolidated financial statements or its disclosure and did not utilize the optional expedients and exceptions provided by ASU 2020-04 during the nine months ended December 31, 2022. In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820) - Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions,” which was issued to (1) clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, (2) amend a related illustrative example, and (3) introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The new guidance is effective for interim and annual periods beginning after December 15, 2023. The Company is currently evaluating the impact of the new standard on the Company's consolidated financial statements and related disclosures and does not believe it will have a material impact on its consolidated financial statements or its disclosure.

INVESTMENTS

9 Months Ended

Dec. 31, 2022

Schedule of Investments [Abstract]

INVESTMENTS

The following table shows the composition of the investment portfolio, at fair value and cost (with corresponding percentage of total portfolio investments) as of December 31, 2022 and March 31, 2022:


	Fair Value		Percentage of Total Portfolio at Fair Value		Percentage of Net Assets at Fair Value		Cost		Percentage of Total Portfolio at Cost
	(dollars in thousands)
December 31, 2022:
First lien loans1,2	$	954,000	83.0	%	169.9	%	$	968,597	83.5	%
Second lien loans2	35,446		3.1		6.3		44,050		3.8
Subordinated debt3	852		0.1		0.1		754		0.1
Preferred equity	61,283		5.3		10.9		39,416		3.4
Common equity & warrants	50,840		4.4		9.1		30,895		2.7
I-45 SLF LLC4	47,625		4.1		8.5		76,000		6.5
	$	1,150,046	100.0	%	204.8	%	$	1,159,712	100.0	%

March 31, 2022:
First lien loans1,2	$	739,872	79.0	%	175.8	%	$	745,290	79.4	%
Second lien loans2	52,645		5.6		12.5		55,976		6.0
Subordinated debt3	1,317		0.1		0.3		994		0.1
Preferred equity	44,663		4.8		10.6		25,544		2.7
Common equity & warrants	40,514		4.3		9.6		34,499		3.7
I-45 SLF LLC4	57,603		6.2		13.7		76,000		8.1
	$	936,614	100.0	%	222.5	%	$	938,303	100.0	%

1Included in first lien loans are loans structured as first lien last out loans. These loans may, in certain cases, be subordinated in payment priority to other senior secured lenders. As of December 31, 2022 and March 31, 2022, the fair value of the first lien last out loans are $51.0 million and $38.6 million, respectively.

2Included in first lien loans and second lien loans are loans structured as split lien term loans. These loans provide the Company with a first lien priority on certain assets of the obligor and a second lien priority on different assets of the obligor. As of December 31, 2022 and March 31, 2022, the fair value of the split lien term loans included in first lien loans is $37.2 million and $36.4 million, respectively. As of December 31, 2022 and March 31, 2022, the fair value of the split lien term loans included in second lien loans is $20.6 million and $33.9 million, respectively.

3Included in subordinated debt are unsecured convertible notes with a fair value of $0.5 million and $0.7 million as of December 31, 2022 and March 31, 2022, respectively.

4I-45 SLF LLC is a joint venture between CSWC and Main Street Capital Corporation. This entity primarily invests in syndicated senior secured loans to the UMM. The portfolio companies held by I-45 SLF LLC represent a diverse set of industry classifications, which are similar to those in which CSWC invests directly. See Note 13 for further discussion.

The following tables show the composition of the investment portfolio by industry, at fair value and cost (with corresponding percentage of total portfolio investments) as of December 31, 2022 and March 31, 2022:


	Fair Value		Percentage of Total Portfolio at Fair Value		Percentage of Net Assets at Fair Value		Cost		Percentage of Total Portfolio at Cost
	(dollars in thousands)
December 31, 2022:
Media & Marketing	$	142,382	12.4	%	25.4	%	$	132,117	11.4	%
Business Services	127,741		11.1		22.7		128,237		11.1
Healthcare Services	108,710		9.5		19.4		123,408		10.6
Consumer Services	90,019		7.8		15.9		89,283		7.7
Consumer Products & Retail	86,771		7.5		15.4		86,298		7.4
Food, Agriculture & Beverage	72,803		6.3		13.0		74,059		6.4
Healthcare Products	67,002		5.8		11.9		67,777		5.8
Technology Products & Components	64,199		5.6		11.4		46,947		4.1
I-45 SLF LLC1	47,625		4.1		8.5		76,000		6.6
Transportation & Logistics	41,939		3.7		7.5		35,923		3.1
Financial Services	40,418		3.5		7.2		31,019		2.7
Software & IT Services	38,572		3.4		6.9		39,844		3.4
Distribution	34,100		3.0		6.1		35,904		3.1
Education	26,426		2.3		4.7		26,046		2.2
Industrial Services	26,233		2.3		4.7		25,900		2.2
Industrial Products	22,387		2.0		4.0		18,839		1.6
Energy Services (Midstream)	22,355		1.9		4.0		23,014		2.0
Environmental Services	19,592		1.7		3.5		24,920		2.2
Specialty Chemicals	17,884		1.6		3.2		17,559		1.5
Telecommunications	17,776		1.5		3.2		21,829		1.9
Energy Services (Upstream)	17,775		1.5		3.2		17,426		1.5
Containers & Packaging	10,537		0.9		1.8		10,672		0.9
Aerospace & Defense	6,800		0.6		1.2		6,691		0.6
	$	1,150,046	100.0	%	204.8	%	$	1,159,712	100.0	%


	Fair Value		Percentage of Total Portfolio at Fair Value		Percentage of Net Assets at Fair Value		Cost		Percentage of Total Portfolio at Cost
	(dollars in thousands)
March 31, 2022:
Business Services	$	123,697	13.2	%	29.4	%	$	124,860	13.3	%
Consumer Products & Retail	90,457		9.7		21.5		88,375		9.4
Healthcare Services	88,131		9.4		21.0		96,946		10.3
Consumer Services	71,730		7.7		17.0		71,203		7.6
I-45 SLF LLC1	57,603		6.2		13.7		76,000		8.1
Distribution	54,798		5.9		13.0		54,035		5.8
Food, Agriculture & Beverage	48,876		5.2		11.6		47,057		5.0
Media & Marketing	43,463		4.6		10.3		33,049		3.5
Financial Services	39,305		4.2		9.3		31,229		3.3
Technology Products & Components	37,047		4.0		8.8		30,440		3.3
Transportation & Logistics	34,038		3.6		8.1		29,513		3.1
Software & IT Services	33,414		3.6		7.9		34,866		3.7
Education	32,072		3.4		7.6		32,119		3.4
Healthcare Products	32,054		3.4		7.6		33,018		3.5
Environmental Services	20,641		2.2		4.9		23,108		2.5
Telecommunications	18,736		2.0		4.5		22,341		2.4
Energy Services (Upstream)	17,910		1.9		4.3		17,500		1.9
Specialty Chemicals	17,749		1.9		4.2		17,640		1.9
Industrial Products	13,891		1.5		3.3		13,901		1.5
Energy Services (Midstream)	13,465		1.4		3.2		13,582		1.5
Industrial Services	11,614		1.2		2.8		11,451		1.2
Commodities & Mining	10,877		1.2		2.6		11,135		1.2
Containers & Packaging	10,671		1.1		2.5		10,723		1.1
Aerospace & Defense	6,800		0.7		1.6		6,672		0.7
Restaurants	5,367		0.6		1.3		4,556		0.5
Paper & Forest Products	2,208		0.2		0.5		2,984		0.3
	$	936,614	100.0	%	222.5	%	$	938,303	100.0	%

1I-45 SLF LLC is a joint venture between CSWC and Main Street Capital Corporation. This entity primarily invests in syndicated senior secured loans to the UMM. The portfolio companies in I-45 SLF LLC represent a diverse set of industry classifications, which are similar to those in which CSWC invests directly. See Note 13 for further discussion.

The following tables summarize the composition of the investment portfolio by geographic region of the United States, at fair value and cost (with corresponding percentage of total portfolio investments), as of December 31, 2022 and March 31, 2022:


	Fair Value		Percentage of Total Portfolio at Fair Value		Percentage of Net Assets at Fair Value		Cost		Percentage of Total Portfolio at Cost
	(dollars in thousands)
December 31, 2022:
Southeast	$	239,539	20.8	%	42.7	%	$	236,922	20.4	%
Northeast	230,643		20.1		41.1		222,894		19.2
West	228,254		19.8		40.6		223,761		19.3
Southwest	222,872		19.4		39.7		218,712		18.8
Midwest	155,675		13.6		27.7		157,333		13.6
I-45 SLF LLC1	47,625		4.1		8.5		76,000		6.6
International	25,438		2.2		4.5		24,090		2.1
	$	1,150,046	100.0	%	204.8	%	$	1,159,712	100.0	%

March 31, 2022:
Northeast	$	225,578	24.1	%	53.6	%	$	221,780	23.6	%
Southwest	206,057		22.0		49.0		204,443		21.8
West	163,924		17.5		38.9		153,292		16.3
Southeast	136,588		14.6		32.5		138,929		14.9
Midwest	132,308		14.1		31.4		129,354		13.8
I-45 SLF LLC1	57,603		6.1		13.7		76,000		8.1
International	14,556		1.6		3.4		14,505		1.5
	$	936,614	100.0	%	222.5	%	$	938,303	100.0	%

1I-45 SLF LLC is a joint venture between CSWC and Main Street Capital Corporation. This entity primarily invests in syndicated senior secured loans to the UMM. The portfolio companies held by I-45 SLF LLC represent a diverse set of geographic regions, which are similar to those in which CSWC invests directly. See Note 13 for further discussion.

FAIR VALUE MEASUREMENTS

9 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

Investment Valuation Process

The valuation process is led by the finance department in conjunction with the investment team. The process includes a quarterly review of each investment by our executive officers and investment team. Valuations of each portfolio security are prepared quarterly by the finance department using updated financial and other operational information collected by the investment team. Each investment valuation is then subject to review by the executive officers and investment team. In conjunction with the internal valuation process, we have also engaged multiple independent consulting firms specializing in financial due diligence, valuation, and business advisory services to provide third-party valuation reviews of certain investments. The third-party valuation firms provide a range of values for selected investments, which is presented to CSWC’s executive officers and then subsequently to the Board of Directors.

CSWC also uses a standard internal investment rating system in connection with its investment oversight, portfolio management, and investment valuation procedures for its debt portfolio. This system takes into account both quantitative and qualitative factors of the portfolio company and the investments held therein.

There is no single standard for determining fair value in good faith, as fair value depends upon the specific circumstances of each individual investment. While management believes our valuation methodologies are appropriate and consistent with market participants, the recorded fair values of our investments may differ significantly from fair values that would have been used had an active market for the securities existed. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the valuations currently assigned. The Board of Directors has the ultimate responsibility for reviewing and determining, in good faith, the fair value of CSWC’s investments in accordance with the 1940 Act.

Fair Value Hierarchy

CSWC has established and documented processes for determining the fair values of portfolio company investments on a recurring basis in accordance with the 1940 Act and ASC 820. As required by ASC 820, when the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a Level 3 fair value measurement may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Therefore, unrealized appreciation and depreciation related to such investments categorized within the Level 3 tables below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3). CSWC conducts reviews of fair value hierarchy classifications on a quarterly basis. We also use judgment and consider factors specific to the investment in determining the significance of an input to a fair value measurement.

The three levels of valuation inputs established by ASC 820 are as follows:

•Level 1: Investments whose values are based on unadjusted quoted prices in active markets for identical assets or liabilities.

•Level 2: Investments whose values are based on quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

•Level 3: Investments whose values are based on unobservable inputs that are significant to the overall fair value measurement.

As of December 31, 2022 and March 31, 2022, 100% of the CSWC investment portfolio consisted of privately held debt and equity instruments for which inputs falling within the categories of Level 1 and Level 2 are generally not readily available. Therefore, CSWC determines the fair value of its investments (excluding investments for which fair value is measured at net asset value ("NAV") in good faith using Level 3 inputs, pursuant to CSWC's valuation policy and procedures that are established by the management of CSWC, with assistance from multiple third-party valuation advisors and approved by our Board of Directors.

Investment Valuation Inputs

ASC 820 defines fair value in terms of the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date excluding transaction costs. Under ASC 820, the fair value measurement also assumes that the transaction to sell an asset occurs in the principal market for the asset or, in the absence of a principal market, the most advantageous market for the asset. The principal market is the market in which the reporting entity would sell or transfer the asset with the greatest volume and level of activity for the asset. In determining the principal market for an asset or liability under ASC 820, it is assumed that the reporting entity has access to the market as of the measurement date.

The Level 3 inputs to CSWC’s valuation process reflect our best estimate of the assumptions that would be used by market participants in pricing the investment in a transaction in the principal or most advantageous market for the asset.

The fair value determination of each portfolio investment categorized as Level 3 required one or more of the following unobservable inputs:

•Financial information obtained from each portfolio company, including unaudited statements of operations and balance sheets for the most recent period available as compared to budgeted numbers;

•Current and projected financial condition of the portfolio company;

•Current and projected ability of the portfolio company to service its debt obligations;

•Type and amount of collateral, if any, underlying the investment;

•Current financial ratios (e.g., fixed charge coverage ratio, interest coverage ratio and net debt/EBITDA ratio) applicable to the investment;

•Current liquidity of the investment and related financial ratios (e.g., current ratio and quick ratio);

•Indicative dealer quotations from brokers, banks, and other market participants;

•Market yields on other securities of similar risk;

•Pending debt or capital restructuring of the portfolio company;

•Projected operating results of the portfolio company;

•Current information regarding any offers to purchase the investment;

•Current ability of the portfolio company to raise any additional financing as needed;

•Changes in the economic environment which may have a material impact on the operating results of the portfolio company;

•Internal occurrences that may have an impact (both positive and negative) on the operating performance of the portfolio company;

•Qualitative assessment of key management;

•Contractual rights, obligations or restrictions associated with the investment; and

•Other factors deemed relevant.

CSWC uses several different valuation approaches depending on the security type including the Market Approach, the Income Approach, the Enterprise Value Waterfall Approach, and the NAV Valuation Method.

Market Approach

Market Approach is a qualitative and quantitative analysis of the aforementioned unobservable inputs. It is a combination of the Enterprise Value Waterfall Approach and Income Approach as described in detail below. For investments recently originated (within a quarterly reporting period) or where the value has not departed significantly from its cost, we generally rely on our cost basis or recent transaction price to determine the fair value, unless a material event has occurred since origination.

Income Approach

In valuing debt securities, CSWC typically uses an Income Approach model, which considers some or all of the factors listed above. Under the Income Approach, CSWC develops an expectation of the yield that a hypothetical market participant would require when purchasing each debt investment (the “Required Market Yield”). The Required Market Yield is calculated in a two-step process. First, using quarterly market data we estimate the current market yield of similar debt securities. Next,

based on the factors described above, we modify the current market yield for each security to produce a unique Required Market Yield for each of our investments. The resulting Required Market Yield is the significant Level 3 input to the Income Approach model. If, with respect to an investment, the unobservable inputs have not fluctuated significantly from the date the investment was made or have not fluctuated significantly from CSWC’s expectations on the date the investment was made, and there have been no significant fluctuations in the market pricing for such investments, we may conclude that the Required Market Yield for that investment is equal to the stated rate on the investment. In instances where CSWC determines that the Required Market Yield is different from the stated rate on the investment, we discount the contractual cash flows on the debt instrument using the Required Market Yield in order to estimate the fair value of the debt security.

In addition, under the Income Approach, CSWC also determines the appropriateness of the use of third-party broker quotes, if any, as a significant Level 3 input in determining fair value. In determining the appropriateness of the use of third-party broker quotes, CSWC evaluates the level of actual transactions used by the broker to develop the quote, whether the quote was an indicative price or binding offer, the depth and consistency of broker quotes, the source of the broker quotes, and the correlation of changes in broker quotes with underlying performance of the portfolio company and other market indices. To the extent sufficient observable inputs are available to determine fair value, CSWC may use third-party broker quotes or other independent pricing to determine the fair value of certain debt investments.

Fair value measurements using the Income Approach model can be sensitive to significant changes in one or more of the inputs. A significant increase (decrease) in the Required Market Yield for a particular debt security may result in a lower (higher) fair value for that security. A significant increase (decrease) in a third-party broker quote for a particular debt security may result in a higher (lower) value for that security.

Enterprise Value Waterfall Approach

In valuing equity securities (including warrants), CSWC estimates fair value using an Enterprise Value Waterfall valuation model. CSWC estimates the enterprise value of a portfolio company and then allocates the enterprise value to the portfolio company’s securities in order of their relative liquidation preference. In addition, CSWC assumes that any outstanding debt or other securities that are senior to CSWC’s equity securities are required to be repaid at par. Additionally, we may estimate the fair value of non-performing debt securities using the Enterprise Value Waterfall approach as needed.

To estimate the enterprise value of the portfolio company, CSWC uses a weighted valuation model based on public comparable companies, observable transactions and discounted cash flow analyses. A main input into the valuation model is a measure of the portfolio company’s financial performance, which generally is either earnings before interest, taxes, depreciation and amortization, as adjusted (“Adjusted EBITDA”) or revenues. In addition, we consider other factors, including but not limited to (1) offers from third parties to purchase the portfolio company and (2) the implied value of recent investments in the equity securities of the portfolio company. For certain non-performing assets, we may utilize the liquidation or collateral value of the portfolio company's assets in our estimation of its enterprise value.

The significant Level 3 inputs to the Enterprise Value Waterfall model are (1) an appropriate multiple derived from the comparable public companies and transactions, (2) discount rate assumptions used in the discounted cash flow model and (3) a measure of the portfolio company’s financial performance, which generally is either Adjusted EBITDA or revenues. Inputs can be based on historical operating results, projections of future operating results or a combination thereof. The operating results of a portfolio company may be unaudited, projected or pro forma financial information and may require adjustments for certain non-recurring items. CSWC also may consult with the portfolio company’s senior management to obtain updates on the portfolio company’s performance, including information such as industry trends, new product development, loss of customers and other operational issues. Fair value measurements using the Enterprise Value Waterfall model can be sensitive to significant changes in one or more of the inputs. A significant increase (decrease) in either the multiple, Adjusted EBITDA or revenues for a particular equity security would result in a higher (lower) fair value for that security.

NAV Valuation Method

Under the NAV valuation method, for an investment in an investment fund that does not have a readily determinable fair value, CSWC measures the fair value of the investment predominately based on the NAV of the investment fund as of the measurement date. However, in determining the fair value of the investment, we may consider whether adjustments to the NAV are necessary in certain circumstances, based on the analysis of any restrictions on redemption of our investment as of the measurement date, recent actual sales or redemptions of interests in the investment fund, expected future cash flows available to equity holders, or other uncertainties surrounding CSWC’s ability to realize the full NAV of its interests in the investment fund.

The following fair value hierarchy tables set forth our investment portfolio by level as of December 31, 2022 and March 31, 2022 (in thousands):


			Fair Value Measurements
			at December 31, 2022 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	$	954,000	$	—	$	—	$	954,000
Second lien loans	35,446		—		—		35,446
Subordinated debt	852		—		—		852
Preferred equity	61,283		—		—		61,283
Common equity & warrants	50,840		—		—		50,840
Investments measured at net asset value1	47,625		—		—		—
Total Investments	$	1,150,046	$	—	$	—	$	1,102,421



			Fair Value Measurements
			at March 31, 2022 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	$	739,872	$	—	$	—	$	739,872
Second lien loans	52,645		—		—		52,645
Subordinated debt	1,317		—		—		1,317
Preferred equity	44,663		—		—		44,663
Common equity & warrants	40,514		—		—		40,514
Investments measured at net asset value1	57,603		—		—		—
Total Investments	$	936,614	$	—	$	—	$	879,011

1Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in Consolidated Statements of Assets and Liabilities. For the investment valued at NAV per share at December 31, 2022 and March 31, 2022, the redemption restrictions dictate that we cannot withdraw our membership interest without unanimous approval. We are permitted to sell or transfer our membership interest and must deliver written notice of such transfer to the other member no later than 60 business days prior to the sale or transfer.

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, 2022 and March 31, 2022. 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, 2022		Unobservable		Weighted
Type	Technique	(in thousands)		Inputs	Range	Average

First lien loans	Income Approach	$	865,983	Discount Rate	6.9% - 38.1%	13.2%
				Third Party Broker Quote	5.6 - 98.5	95.5
	Market Approach	88,017		Cost	98.0 - 99.5	98.2
				Exit Value	75.0 - 100.0	95.7
Second lien loans	Income Approach	33,071		Discount Rate	14.2% - 29.0%	21.9%
				Third Party Broker Quote	66.0 - 66.0	66.0

	Market Approach	2,375		Exit Value	45.6 - 45.6	45.6



Subordinated debt	Market Approach	581		Cost	100.0 - 100.0	100.0
	Enterprise Value Waterfall Approach	271		EBITDA Multiple	7.6x - 7.6x	7.6x
				Discount Rate	21.0% - 21.0%	21.0%
Preferred equity	Enterprise Value Waterfall Approach	61,283		EBITDA Multiple	4.7x - 17.1x	10.1x
				Discount Rate	12.6% - 30.1%	18.6%

Common equity & warrants	Enterprise Value Waterfall Approach	48,225		EBITDA Multiple	5.5x - 11.0x	9.3x
				Discount Rate	11.3% - 78.4%	16.8%
	Market Approach	2,615		Cost	100.0 - 100.0	100.0

Total Level 3 Investments		$	1,102,421


		Fair Value at		Significant
	Valuation	March 31, 2022		Unobservable		Weighted
Type	Technique	(in thousands)		Inputs	Range	Average

First lien loans	Income Approach	$	645,034	Discount Rate	7.3% - 30.6%	10.7%
				Third Party Broker Quote	5.5 - 96.5	93.2
	Market Approach	94,838		Cost	80.2 - 99.0	98.1
				Exit Value	100.0 - 102.0	101.8
Second lien loans	Income Approach	49,541		Discount Rate	10.3% - 37.8%	15.4%
				Third Party Broker Quote	97.3 - 97.3	97.3
	Enterprise Value Waterfall Approach	3,104		EBITDA Multiple	8.3x - 8.3x	8.3x
				Discount Rate	22.1% - 22.1%	22.1%
Subordinated debt	Income Approach	650		Discount Rate	27.4% - 27.4%	27.4%
	Market Approach	172		Cost	100.0 - 100.0	100.0
	Enterprise Value Waterfall Approach	495		EBITDA Multiple	8.1x - 8.1x	8.1x
				Discount Rate	20.5% - 20.5%	20.5
Preferred equity	Enterprise Value Waterfall Approach	41,563		EBITDA Multiple	6.9x - 18.8x	10.6x
				Discount Rate	12.5% - 40.8%	17.8%
	Market Approach	3,100		Cost	100.0 - 100.0	100.0
Common equity & warrants	Enterprise Value Waterfall Approach	36,667		EBITDA Multiple	4.2x - 11.4x	8.5x
				Discount Rate	10.1% - 32.2%	18.1%
	Market Approach	1,757		Exit Value	351.4 - 351.4	351.4
	Income Approach	2,090		Third Party Broker Quote	158.7 - 158.7	158.7
Total Level 3 Investments		$	879,011

Changes in Fair Value Levels

We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model based valuation techniques may require the transfer of financial instruments from one fair value level to another. During the three and nine months ended December 31, 2022 and 2021, we had no transfers between levels.

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, 2022 and 2021 (in thousands):


	Fair Value March 31, 2022		Realized & Unrealized Gains (Losses)		Purchases of Investments1		Repayments		PIK Interest Capitalized		Divestitures		Conversion/Reclassification of Security		Fair Value December 31, 2022		YTD Unrealized Appreciation (Depreciation) on Investments held at period end
First lien loans	$	739,872	$	(14,263)	$	335,069	$	(96,475)	$	3,512	$	—	$	(13,715)	$	954,000	$	(10,201)
Second lien loans	52,645		(7,512)		2,930		(12,239)		314		(692)		—		35,446		(6,307)
Subordinated debt	1,317		(328)		385		—		65		—		(587)		852		(224)
Preferred equity	44,663		(1,253)		3,571		—		—		—		14,302		61,283		1,840
Common equity & warrants	40,514		8,670		4,320		—		—		(2,664)		—		50,840		9,853
Total Investments	$	879,011	$	(14,686)	$	346,275	$	(108,714)	$	3,891	$	(3,356)	$	—	$	1,102,421	$	(5,039)

	Fair Value March 31, 2021		Realized & Unrealized Gains (Losses)		Purchases of Investments1		Repayments		PIK Interest Capitalized		Divestitures		Conversion/Reclassification of Security		Fair Value December 31, 2021		YTD Unrealized Appreciation (Depreciation) on Investments held at period end
First lien loans	$	524,161	$	(998)	$	378,164	$	(219,454)	$	1,994	$	—	$	(4,683)	$	679,184	$	(2,515)
Second lien loans	36,919		(1,791)		18,841		(7,152)		1,079		(53)		5,208		53,051		(2,165)
Subordinated debt	11,534		165		270		—		477		—		—		12,446		165
Preferred equity	22,608		7,796		7,511		—		—		—		(525)		37,390		7,271
Common equity & warrants	36,052		8,677		4,257		—		—		(11,881)		—		37,105		4,042
Total Investments	$	631,274	$	13,849	$	409,043	$	(226,606)	$	3,550	$	(11,934)	$	—	$	819,176	$	6,798

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

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

BORROWINGS

9 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

BORROWINGS

In accordance with the 1940 Act, with certain limitations, effective April 25, 2019, the Company is only allowed to borrow amounts such that its asset coverage (i.e., the ratio of assets less liabilities not represented by senior securities to senior securities such as borrowings), calculated pursuant to the 1940 Act, is at least 150% after such borrowing. The Board of Directors also approved a resolution which limits the Company’s issuance of senior securities such that the asset coverage ratio, taking into account any such issuance, would not be less than 166%, which became effective April 25, 2019. On August 11, 2021, we received an exemptive order from SEC to permit us to exclude the senior securities issued by SBIC I or any future SBIC subsidiary of the Company from the definition of senior securities in the asset coverage requirement applicable to the Company under the 1940 Act. As of December 31, 2022, the Company’s asset coverage was 229%.

The Company had the following borrowings outstanding as of December 31, 2022 and March 31, 2022 (amounts in thousands):


December 31, 2022	Outstanding Balance		Unamortized Debt Issuance Costs and Debt Discount/Premium		Recorded Value
SBA Debentures	$	104,000	$	(3,418)	$	100,582
Credit Facility	225,000		—		225,000
January 2026 Notes	140,000		(1,033)		138,967
October 2026 Notes	150,000		(2,922)		147,078
	$	619,000	$	(7,373)	$	611,627

March 31, 2022
SBA Debentures	$	40,000	$	(1,648)	$	38,352
Credit Facility	205,000		—		205,000
January 2026 Notes	140,000		(1,286)		138,714
October 2026 Notes	150,000		(3,478)		146,522
	$	535,000	$	(6,412)	$	528,588

Credit Facility

In August 2016, CSWC entered into a senior secured credit facility (the “Credit Facility”) to provide additional liquidity to support its investment and operational activities.

On August 9, 2021, CSWC entered into the Second Amended and Restated Senior Secured Revolving Credit Agreement (as amended or otherwise modified from time to time, the "Credit Agreement"). Prior to the Credit Agreement, (1) borrowings under the Credit Facility accrued interest on a per annum basis at a rate equal to the applicable LIBOR rate plus 2.50% with no LIBOR floor, and (2) the total borrowing capacity was $340 million with commitments from a diversified group of eleven lenders. The Credit Agreement (1) decreased the total borrowing capacity under the Credit Facility to $335 million with commitments from a diversified group of ten lenders, (2) reduced the interest rate on borrowings to LIBOR plus 2.15% with no LIBOR floor and removed conditions related thereto as previously set forth in the Amended and Restated Senior Secured Revolving Credit Agreement, and (3) extended the end of the Credit Facility's revolver period from December 21, 2022 to August 9, 2025 and extended the final maturity from December 21, 2023 to August 9, 2026. The Credit Agreement also modified certain covenants in the Credit Facility, including, among other things, to increase the minimum obligors’ net worth test from $180 million to $200 million.

The Credit Facility contains an accordion feature that allows CSWC to increase the total commitments under the Credit Facility up to $400 million from new and existing lenders on the same terms and conditions as the existing commitments.

On May 11, 2022, CSWC entered into Amendment No. 2 (the "Amendment") to the Credit Agreement. The Amendment changed the benchmark interest rate from LIBOR to Adjusted Term SOFR. In addition, CSWC entered into an Incremental Commitment Agreement, pursuant to which the total commitments under the Credit Agreement increased from $335 million to $380 million.

On November 16, 2022, CSWC entered into an Incremental Assumption Agreement that increased the total commitments under the accordion feature of the Credit Agreement by $20 million, which increased total commitments from $380 million to $400 million. The $20 million increase was provided by one existing lender and one new lender, bringing the total bank syndicate to eleven participants.

CSWC pays unused commitment fees of 0.50% to 1.00% per annum, based on utilization, on the unused lender commitments under the Credit Facility. The Credit Facility contains certain affirmative and negative covenants, including but not limited to: (1) certain reporting requirements, (2) maintaining RIC and BDC status, (3) maintaining a minimum senior coverage ratio of 2 to 1, (4) maintaining a minimum shareholders’ equity, (5) maintaining a minimum consolidated net worth, (6) maintaining a regulatory asset coverage of not less than 150%, (7) maintaining an interest coverage ratio of at least 2.25 to 1.0, and (8) at any time the outstanding advances exceed 90% of the borrowing base, maintaining a minimum liquidity of not less than 10% of the covered debt amount.

The Credit Agreement also contains customary events of default, including, without limitation, nonpayment, misrepresentation of representations and warranties in a material respect, breach of covenant, bankruptcy, and change of control, with customary cure and notice provisions. If the Company defaults on its obligations under the Credit Agreement, the lenders may have the right to foreclose upon and sell, or otherwise transfer, the collateral subject to their security interests.

The Credit Facility is secured by (1) substantially all of the present and future property and assets of the Company and the guarantors and (2) 100% of the equity interests in the Company’s wholly-owned subsidiary. As of December 31, 2022, substantially all of the Company’s assets were pledged as collateral for the Credit Facility, except for assets held in SBIC I.

At December 31, 2022, CSWC had $225.0 million in borrowings outstanding under the Credit Facility. CSWC recognized interest expense related to the Credit Facility, including unused commitment fees and amortization of deferred loan costs, of $3.9 million and $8.8 million for the three and nine months ended December 31, 2022, respectively. For the three and nine months ended December 31, 2021, CSWC recognized interest expense of $1.6 million and $4.5 million, respectively. The weighted average interest rate on the Credit Facility was 6.02% and 4.63% for the three and nine months ended December 31, 2022, respectively. For the three and nine months ended December 31, 2021, the weighted average interest rate on the Credit Facility was 2.37% and 2.52%, respectively. Average borrowings for the three and nine months ended December 31, 2022 were $228.0 million and $208.6 million, respectively. For the three and nine months ended December 31, 2021, average borrowings were $200.2 million and $165.8 million, respectively. As of December 31, 2022, CSWC was in compliance with all financial covenants under the Credit Agreement.

October 2024 Notes

In September 2019, the Company issued $65.0 million in aggregate principal amount of 5.375% Notes due 2024 (the “Existing October 2024 Notes”). In October 2019, the Company issued an additional $10.0 million in aggregate principal amount of the October 2024 Notes (the "Additional October 2024 Notes"). In August 2020, the Company issued an additional $50.0 million in aggregate principal amount of the October 2024 Notes (the "New Notes" together with the Existing October 2024 Notes and the Additional October 2024 Notes, the "October 2024 Notes"). The Additional October 2024 Notes and the New Notes were treated as a single series with the Existing October 2024 Notes under the indenture and had the same terms as the Existing October 2024 Notes. The maturity date of the October 2024 Notes was October 1, 2024, and the October 2024 Notes were redeemable in whole or in part at any time prior to July 1, 2024, at par plus a “make-whole” premium, and thereafter at par. The October 2024 Notes bore interest at a rate of 5.375% per year.

On September 24, 2021, the Company redeemed $125.0 million in aggregate principal amount of the issued and outstanding October 2024 Notes. The October 2024 Notes were redeemed at 100% of their principal amount, plus (i) the accrued and unpaid interest thereon, through, but excluding the redemption date, and (ii) a "make-whole" premium.

Accordingly, the Company recognized a realized loss on extinguishment of debt, equal to the write-off of the related unamortized debt issuance costs of $1.8 million and the "make-whole" premium of $15.2 million during the three months ended September 30, 2021.

The Company did not recognize any interest expense related to the October 2024 Notes for the three months ended December 31, 2021. For the nine months ended December 31, 2021, the Company recognized interest expense related to the October 2024 Notes, including amortization of deferred issuance costs, of $3.6 million. From April 1, 2021 through September 24, 2021 (the redemption date of the October 2024 Notes), average borrowings were $125.0 million. The October 2024 Notes had a weighted average effective yield of 5.375%.

January 2026 Notes

In December 2020, the Company issued $75.0 million in aggregate principal amount of 4.50% Notes due 2026 (the "Existing January 2026 Notes"). The Existing January 2026 Notes were issued at par. In February 2021, the Company issued an additional $65.0 million in aggregate principal amount of the January 2026 Notes (the "Additional January 2026 Notes" together with the Existing January 2026 Notes, the "January 2026 Notes"). The Additional January 2026 Notes were issued at a price of 102.11% of the aggregate principal amount of the Additional January 2026 Notes, resulting in a yield-to-maturity of approximately 4.0% at issuance. The Additional January 2026 Notes are treated as a single series with the Existing January 2026 Notes under the indenture and have the same terms as the Existing January 2026 Notes. The January 2026 Notes mature on January 31, 2026 and may be redeemed in whole or in part at any time prior to October 31, 2025, at par plus a "make-whole" premium, and thereafter at par. The January 2026 Notes bear interest at a rate of 4.50% per year, payable semi-annually on January 31 and July 31 of each year. The January 2026 Notes are the direct unsecured obligations of the Company and rank pari passu with our other outstanding and future unsecured unsubordinated indebtedness and are effectively or structurally subordinated to all of our existing and future secured indebtedness, including borrowings under our Credit Facility and the SBA Debentures.

As of December 31, 2022, the carrying amount of the January 2026 Notes was $139.0 million on an aggregate principal amount of $140.0 million at a weighted average effective yield of 4.46%. As of December 31, 2022, the fair value of the January 2026 Notes was $121.9 million. This is a Level 3 fair value measurement under ASC 820 based on a valuation model using a discounted cash flow analysis. The Company recognized interest expense related to the January 2026 Notes, including amortization of deferred issuance costs, of $1.7 million and $5.0 million for the three and nine months ended December 31, 2022, respectively. For the three and nine months ended December 31, 2021, the Company recognized interest expense of $1.6 million and $5.0 million, respectively. For each of the three and nine months ended December 31, 2022 and 2021, average borrowings were $140.0 million.

The indenture governing the January 2026 Notes contains certain covenants, including certain covenants requiring the Company to comply with Section 18(a)(1)(A) as modified by Section 61(a)(2) of the 1940 Act, or any successor provisions, whether or not the Company continues to be subject to such provisions of the 1940 Act, but giving effect, in either case, to any exemptive relief granted to the Company by the SEC, to comply with Section 18(a)(1)(B) as modified by Section 61(a)(2) of the 1940 Act, or any successor provisions, after giving effect to any exemptive relief granted to the Company by the SEC and subject to certain other exceptions, and to provide financial information to the holders of the January 2026 Notes and the trustee under the indenture if the Company is no longer subject to the reporting requirements under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These covenants are subject to important limitations and exceptions that are described in the indenture and the third supplemental indenture relating to the January 2026 Notes.

In addition, holders of the January 2026 Notes can require the Company to repurchase some or all of the January 2026 Notes at a purchase price equal to 100% of their principal amount, plus accrued and unpaid interest to, but not including, the repurchase date upon the occurrence of a “Change of Control Repurchase Event,” as defined in the third supplemental indenture relating to the January 2026 Notes.

October 2026 Notes

In August 2021, the Company issued $100.0 million in aggregate principal amount of 3.375% Notes due 2026 (the "Existing October 2026 Notes"). The Existing October 2026 Notes were issued at a price of 99.418% of the aggregate principal amount of the Existing October 2026 Notes, resulting in a yield-to-maturity of 3.5%. In November

2021, the Company issued an additional $50.0 million in aggregate principal amount of the October 2026 Notes (the "Additional October 2026 Notes" together with the Existing October 2026 Notes, the "October 2026 Notes"). The Additional October 2026 Notes were issued at a price of 99.993% of the aggregate principal amount, resulting in a yield-to-maturity of approximately 3.375% at issuance. The Additional October 2026 Notes are treated as a single series with the Existing October 2026 Notes under the indenture and have the same terms as the Existing October 2026 Notes. The October 2026 Notes mature on October 1, 2026 and may be redeemed in whole or in part at any time prior to July 1, 2026, at par plus a "make-whole" premium, and thereafter at par. The October 2026 Notes bear interest at a rate of 3.375% per year, payable semi-annually in arrears on April 1 and October 1 of each year. The October 2026 Notes are the direct unsecured obligations of the Company and rank pari passu with our other outstanding and future unsecured unsubordinated indebtedness and are effectively or structurally subordinated to all of our existing and future secured indebtedness, including borrowings under our Credit Facility and the SBA Debentures.

As of December 31, 2022, the carrying amount of the October 2026 Notes was $147.1 million on an aggregate principal amount of $150.0 million at a weighted average effective yield of 3.5%. As of December 31, 2022, the fair value of the October 2026 Notes was $130.0 million. This is a Level 3 fair value measurement under ASC 820 based on a valuation model using a discounted cash flow analysis. The Company recognized interest expense related to the October 2026 Notes, including amortization of deferred issuance costs, of $1.4 million and $4.3 million for the three and nine ended December 31, 2022, respectively. For the three and nine months ended December 31, 2021, the Company recognized interest expense of $1.3 million and $1.7 million, respectively. For both the three and nine months ended December 31, 2022, average borrowings were $150.0 million. For the three months ended December 31, 2021, average borrowings were $128.8 million. Since the issuance of the October 2026 Notes on August 27, 2021 through December 31, 2021, average borrowings were $120.9 million.

The indenture governing the October 2026 Notes contains certain covenants, including certain covenants requiring the Company to comply with Section 18(a)(1)(A) as modified by Section 61(a)(2) of the 1940 Act, or any successor provisions, whether or not the Company continues to be subject to such provisions of the 1940 Act, but giving effect, in either case, to any exemptive relief granted to the Company by the SEC, to comply with Section 18(a)(1)(B) as modified by Section 61(a)(2) of the 1940 Act, or any successor provisions, after giving effect to any exemptive relief granted to the Company by the SEC and subject to certain other exceptions, and to provide financial information to the holders of the October 2026 Notes and the trustee under the indenture if the Company is no longer subject to the reporting requirements under the Exchange Act. These covenants are subject to important limitations and exceptions that are described in the indenture and the fourth supplemental indenture relating to the October 2026 Notes.

In addition, holders of the October 2026 Notes can require the Company to repurchase some or all of the October 2026 Notes at a purchase price equal to 100% of their principal amount, plus accrued and unpaid interest to, but not including, the repurchase date upon the occurrence of a “Change of Control Repurchase Event,” as defined in the fourth supplemental indenture relating to the October 2026 Notes.

SBA Debentures

On April 20, 2021, SBIC I received a license from the SBA to operate as an SBIC under Section 301(c) of the Small Business Investment Act of 1958, as amended. The license allows SBIC I to obtain leverage by issuing SBA Debentures, subject to the issuance of a leverage commitment by the SBA. SBA Debentures are loans issued to an SBIC which have interest payable semi-annually and a ten-year maturity. The interest rate is fixed shortly after issuance at a market-driven spread over U.S. Treasury Notes with ten-year maturities. Interest on SBA Debentures is payable semi-annually on March 1 and September 1. Current statutes and regulations permit SBIC I to borrow up to $175 million in SBA Debentures with at least $87.5 million in regulatory capital (as defined in the SBA regulations).

On May 25, 2021, SBIC I received a leverage commitment from the SBA in the amount of $40.0 million to be issued on or prior to September 30, 2025. On January 28, 2022, SBIC I received an additional leverage commitment in the amount of $40.0 million to be issued on or prior to September 30, 2026. On November 22, 2022, SBIC I received an additional leverage commitment in the amount of $50.0 million to be issued on or prior to September 30, 2027. As of December 31, 2022, SBIC I had regulatory capital of $65.0 million and leverageable capital of $65.0 million. As of December 31, 2022, SBIC I had a total leverage commitment from the SBA in the amount of $130.0 million, of which $26.0 million remains unused. The SBA may limit the amount that may be drawn each year under these commitments, and each issuance of leverage is conditioned on the Company’s full compliance, as determined by the SBA, with the terms and conditions set forth in the SBA regulations.

As of December 31, 2022, the carrying amount of SBA Debentures was $100.6 million on an aggregate principal amount of $104.0 million. As of December 31, 2022, the fair value of the SBA Debentures was $97.4 million. The fair value of the SBA Debentures is estimated by discounting the remaining payments using current market rates for similar instruments and considering such factors as the legal maturity date and the ability of market participants to prepay the SBA Debentures, which are Level 3 inputs under ASC 820. The Company recognized interest expense and related fees related to SBA Debentures of $0.9 million and $1.9 million for the three and nine months ended December 31, 2022, respectively. For the three and nine months ended December 31, 2021, the Company recognized interest expense of $0.1 million and $0.2 million, respectively. The weighted average interest rate on the SBA Debentures was 3.70% and 2.98% for the three and nine months ended December 31, 2022, respectively. For the three and nine months ended December 31, 2021, the weighted average interest rate on the SBA Debentures was 1.43% and 1.24%, respectively. For the three and nine months ended December 31, 2022, average borrowings were $83.9 million and $54.1 million, respectively. Average borrowings for the three and nine months ended December 31, 2021 were $21.0 million and $10.1 million, respectively.

As of December 31, 2022, the Company's issued and outstanding SBA Debentures mature as follows (amounts in thousands):


Pooling Date (1)	Maturity Date	Fixed Interest Rate	December 31, 2022
9/22/2021	9/1/2031	1.575%	$	15,000
3/23/2022	3/1/2032	3.209%	25,000
9/21/2022	9/1/2032	4.533%	40,000
(2)	(2)	(2)	24,000
			$	104,000

(1)The SBA has two scheduled pooling dates for SBA Debentures (in March and in September). Certain SBA Debentures funded during the reporting periods may not be pooled until the subsequent pooling date.

(2)The Company issued $24.0 million in SBA Debentures that will pool in March 2023. Until the pooling date, the SBA Debentures bear interest at a fixed rate with a weighted-average interim interest rate of 5.14%.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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INCOME TAXES

9 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

We have elected, and intend to qualify annually, to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code and have a tax year end of December 31. In order to qualify as a RIC, we must annually distribute at least 90% of our investment company taxable income, as defined by the Code, to our shareholders in a timely manner. Investment company income generally includes net short-term capital gains but excludes net long-term capital gains. A RIC is not subject to federal income tax on the portion of its ordinary income and capital gains that is distributed to its shareholders, including “deemed distributions” as discussed below. As part of maintaining RIC tax treatment, undistributed taxable income and capital gain, which is subject to a 4% non-deductible U.S. federal excise tax, pertaining to a given fiscal year may be distributed up to 12 months subsequent to the end of that fiscal year, provided such dividends are declared on or prior to the later of (1) the extended due date of the U.S. federal income tax return for the applicable fiscal year and (2) the fifteenth day of the ninth month following the close of the year in which such taxable income was generated.

As of December 31, 2022, CSWC qualified for RIC tax treatment. We intend to meet the applicable qualifications to be taxed as a RIC in future periods. However, the Company’s ability to meet certain portfolio diversification requirements of RICs in future years may not be controllable by the Company.

Book and tax basis differences relating to dividends and distributions to our shareholders and other permanent book and tax differences are typically reclassified among the CSWC’s capital accounts. In addition, the character of income and gains to be distributed is determined in accordance with income tax regulations that may differ from U.S. GAAP; accordingly, for the nine months ended December 31, 2022 and 2021, CSWC reclassified for book purposes amounts arising from permanent book/tax differences related to the tax treatment of return of capital and/or deemed distributions, tax treatment of investments upon disposition, and non-deductible expenses, as follows (amounts in thousands):


	Nine Months Ended December 31,
	2022		2021
Additional capital	$	(5,126)	$	(6,255)
Total distributable earnings	5,126		6,255

The determination of the tax attributes for CSWC’s distributions is made annually, based upon its taxable income for the full year and distributions paid for the full year. Therefore, any determination made on an interim basis is forward-looking based on currently available facts, rules and assumptions and may not be representative of the actual tax attributes of distributions for a full year.

During the quarter ended March 31, 2022, CSWC declared total dividends of $11.8 million, or $0.48 per share. During the quarter ended June 30, 2022, CSWC declared total dividends of $16.6 million, or $0.63 per share ($0.48 per share in regular dividends and $0.15 per share in special dividends). During the quarter ended September 30, 2022, CSWC declared total dividends of $14.3 million, or $0.50 per share. During the quarter ended December 31, 2022, CSWC declared total dividends of $19.3 million, or $0.57 per share ($0.52 per share in regular dividends and $0.05 per share in supplemental dividends).

Ordinary dividend distributions from a RIC do not qualify for the 20% maximum tax rate on dividend income from domestic corporations and qualified foreign corporations, except to the extent that the RIC received the income in the form of qualifying dividends from domestic corporations and qualified foreign corporations. The tax attributes for distributions will generally include both ordinary income and capital gains, but may also include qualified dividends or return of capital.

The tax character of distributions paid for the years ended December 31, 2022 and 2021 was as follows (amounts in thousands):


	Twelve Months Ended December 31,
	2022		2021
Ordinary income	$	60,960	$	56,633
Distributions of long term capital gains	—		—
Distributions on tax basis	$	60,960	$	56,633

The following reconciles net increase in net assets resulting from operations to estimated RIC taxable income for the nine months ended December 31, 2022 and 2021:


	Nine Months Ended December 31,
Reconciliation of RIC Distributable Income1	2022		2021
Net increase in net assets from operations	$	14,917	$	23,146
Net unrealized depreciation (appreciation) on investments	13,989		(4,306)
Income/gain (expense/loss) recognized for tax on pass-through entities	10		1,558
(Gain) loss recognized on dispositions	(1,473)		329
Capital loss carryover2	14,454		308
Net operating income - wholly-owned subsidiary	1,071		(9,186)
Dividend income from wholly-owned subsidiary	1,068		—
Non-deductible tax expense	466		191
Loss on extinguishment of debt	—		12,950
Non-deductible compensation	2,443		2,688
Compensation related book/tax differences	(1,471)		2,542
Other book/tax differences	1,839		3,518
Estimated distributable income before deductions for distributions	$	47,313	$	33,738

1The calculation of taxable income for each period is an estimate and will not be finally determined until the Company files its tax return each year. Final taxable income may be different than this estimate.

2At December 31, 2022, the Company had long-term capital loss carryforwards of $31.9 million to offset future capital gains. These capital loss carryforwards are not subject to expiration.

A RIC may elect to retain all or a portion of its net capital gains by designating them as a “deemed distribution” to its shareholders and paying a federal tax on the net capital gains for the benefit of its shareholders. Shareholders then report their share of the retained capital gains on their income tax returns as if it had been received and report a tax credit for tax paid on their behalf by the RIC. Shareholders then add the amount of the “deemed distribution” net of such tax to the basis of their shares.

In addition, the Taxable Subsidiary holds a portion of one or more of our portfolio investments that are listed on the Consolidated Schedule of Investments. The Taxable Subsidiary is consolidated for financial reporting purposes in accordance with U.S. GAAP, so that our consolidated financial statements reflect our investments in the portfolio companies owned by the Taxable Subsidiary. The purpose of the Taxable Subsidiary is to permit us to hold certain interests in portfolio companies that are organized as limited liability companies, or LLCs (or other forms of pass-through entities) and still satisfy the RIC tax requirement that at least 90% of our gross income for U.S. federal income tax purposes must consist of qualifying investment income. Absent the Taxable Subsidiary, a proportionate amount of any gross income of a partnership or LLC (or other pass-through entity) portfolio investment would flow through directly to us. To the extent that our income did not consist of investment income, it could jeopardize our ability to qualify as a RIC and therefore cause us to incur significant amounts of U.S. federal income taxes at corporate rates. Where interests in LLCs (or other pass-through entities) are owned by the Taxable Subsidiary, however, the income from those interests is taxed to the Taxable Subsidiary and does not flow through to us, thereby helping us preserve our RIC tax treatment and resultant tax advantages. The Taxable Subsidiary is not consolidated for U.S. federal income tax purposes and may generate an income tax provision as a result of their ownership of the portfolio companies. The income tax provision, or benefit, and the related tax assets and liabilities, if any, are reflected in our Statement of Operations.

As of December 31, 2022, the cost of investments held at the RIC for U.S. federal income tax purposes was $1,116.8 million, with such investments having gross unrealized appreciation of $9.7 million and gross unrealized depreciation of $64.3 million, resulting in net unrealized depreciation of $54.6 million. As of December 31, 2022, the cost of investments held at the Taxable Subsidiary for U.S. federal income tax purposes was $33.8 million, with such investments having gross unrealized appreciation of $57.2 million and gross unrealized depreciation of $2.4 million, resulting in net unrealized appreciation of $54.8 million. On a consolidated basis, the total investment portfolio has net unrealized appreciation of $0.2 million for U.S. federal income tax purposes.

The Taxable Subsidiary is not a RIC and is required to pay taxes at the current corporate rate. For tax purposes, the Taxable Subsidiary has elected to be treated as a taxable entity, and therefore is not consolidated for tax purposes and is taxed at normal corporate tax rates based on its taxable income and, as a result of its activities, may generate an income tax provision or benefit.

The taxable income, or loss, of the Taxable Subsidiary may differ from book income, or loss, due to temporary book and tax timing differences and permanent differences. This income tax provision, or benefit, if any, and the related tax assets and liabilities, are reflected in our consolidated financial statements. The Taxable Subsidiary records valuation adjustments related to its investments on a quarterly basis. Deferred taxes related to the unrealized gain/loss on investments are also recorded on a quarterly basis. A valuation allowance is provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. Establishing a valuation allowance of a deferred tax asset requires management to make estimates related to expectations of future taxable income. As of December 31, 2022 and March 31, 2022, the Taxable Subsidiary had a deferred tax liability of $11.4 million and $5.7 million, respectively.

Based on our assessment of our unrecognized tax benefits, management believes that all benefits will be realized and they do not contain any uncertain tax positions.

The following table sets forth the significant components of the deferred tax assets and liabilities as of December 31, 2022 and March 31, 2022 (amounts in thousands):


	December 31, 2022		March 31, 2022
Deferred tax asset:
Net operating loss carryforwards	$	—	$	—
Interest	220		185
Total deferred tax asset	220		185
Deferred tax liabilities:
Net unrealized appreciation on investments	(10,911)		(4,899)
Net basis differences in portfolio investments	(736)		(1,033)
Total deferred tax liabilities	(11,647)		(5,932)
Total net deferred tax (liabilities) assets	$	(11,427)	$	(5,747)

The income tax provision, or benefit, and the related tax assets and liabilities, generated by CSWC and the Taxable Subsidiary, if any, are reflected in CSWC’s consolidated financial statements. For the three months ended December 31, 2022, we recognized a net income tax benefit of $0.7 million, principally consisting of a $0.2 million accrual for U.S. federal excise tax and $0.9 million of tax benefit relating to the Taxable Subsidiary. For the nine months ended December 31, 2022, we recognized a net income tax benefit of $20.6 thousand, principally consisting of a $0.5 million accrual for U.S. federal excise tax and a $0.5 million tax benefit relating to the Taxable Subsidiary. For the three months ended December 31, 2021, we recognized a net income tax benefit of $0.1 million, principally consisting of a $0.1 million accrual for U.S. federal excise tax and a $0.2 million tax benefit relating to the Taxable Subsidiary. For the nine months ended December 31, 2021, we recognized a net income tax provision of $0.6 million, principally consisting of a $0.2 million accrual for U.S. federal excise tax and a $0.4 million tax provision relating to the Taxable Subsidiary.

Although we believe our tax returns are correct, the final determination of tax examinations could be different from what was reported on the returns. In our opinion, we have made adequate tax provisions for years subject to examination. Generally, we are currently open to audit under the statute of limitations by the Internal Revenue Service as well as state taxing authorities for the years ended December 31, 2019 through December 31, 2021.

The following table sets forth the significant components of income tax provision as of December 31, 2022 and 2021 (amounts in thousands):


	Nine Months Ended December 31,
Components of Income Tax Provision	2022		2021
Excise tax	$	468	$	191
Tax (benefit) provision related to Taxable Subsidiary	(488)		457
Total income tax (benefit) provision	$	(20)	$	648

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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SHAREHOLDERS' EQUITY

9 Months Ended

Dec. 31, 2022

Equity [Abstract]

SHAREHOLDERS' EQUITY

Public Equity Offering

On November 17, 2022, the Company completed an underwritten public equity offering of 2,534,436 shares of common stock, including shares issuable pursuant to the underwriters' option to purchase additional shares, at a public offering price of $18.15 per share, raising $46.0 million of gross proceeds. Net proceeds were $44.1 million after deducting underwriting discounts and offering expenses.

Equity ATM Program

On March 4, 2019, the Company established the Equity ATM Program, pursuant to which the Company may offer and sell, from time to time through sales agents, shares of its common stock having an aggregate offering price of up to $50,000,000. On February 4, 2020, the Company (i) increased the maximum amount of shares of its common stock to be sold through the Equity ATM Program to $100,000,000 from $50,000,000 and (ii) added two additional sales agents to the Equity ATM Program. On May 26, 2021, the Company (i) increased the maximum amount of shares of its common stock to be sold through the Equity ATM Program to $250,000,000 from $100,000,000 and (ii) reduced the commission paid to the sales agents for the Equity ATM Program to 1.5% from 2.0% of the gross sales price of shares of the Company's common stock sold through the sales agents pursuant to the Equity ATM Program on and after May 26, 2021. On August 2, 2022, the Company increased the maximum amount of shares of its common stock to be sold through the Equity ATM Program to $650,000,000 from $250,000,000.

The following table summarizes certain information relating to shares sold under the Equity ATM Program:


	Three Months Ended December 31,
	2022		2021
Number of shares sold	3,264,878		616,156
Gross proceeds received (in thousands)	$	58,324	$	16,000
Net proceeds received (in thousands)1	$	57,449	$	15,760
Weighted average price per share	$	17.86	$	25.97

	Nine Months Ended December 31,
	2022		2021
Number of shares sold	6,909,446		2,834,734
Gross proceeds received (in thousands)	$	131,990	$	74,463
Net proceeds received (in thousands)1	$	130,010	$	73,347
Weighted average price per share	$	19.10	$	26.27

1Net proceeds reflects proceeds after deducting commissions to the sales agents on shares sold and offering expenses. As of December 31, 2022, $2.7 million remained receivable and is included in other receivables in the Consolidated Statement of Assets and Liabilities. As of December 31, 2021, no proceeds remained receivable.

Cumulative to date, the Company has sold 15,087,106 shares of its common stock under the Equity ATM Program at a weighted-average price of $20.91, raising $315.5 million of gross proceeds. Net proceeds were $310.3 million after commissions to the sales agents on shares sold. As of December 31, 2022, the Company has $334.5 million available under the Equity ATM Program.

Share Repurchases

The right to grant restricted stock awards under the 2010 Plan terminated on July 18, 2021, ten years after the date that the 2010 Plan was approved by the Company’s shareholders pursuant to its terms. In connection with the termination of the 2010 Plan, the Company’s Board of Directors and shareholders approved the 2021 Employee Plan, which became effective on July 28, 2021, as part of the compensation package for its employees, the terms of which are, in all material respects, identical to the 2010 Plan. On July 19, 2021, we received an exemptive order that supersedes the prior exemptive order relating to the 2010 Plan (the “Order”) to permit the Company to (i) issue restricted stock as part

of the compensation package for its employees in the 2021 Employee Plan, and (ii) withhold shares of the Company’s common stock or purchase shares of the Company’s common stock from the participants to satisfy tax withholding obligations relating to the vesting of restricted stock pursuant to the 2021 Employee Plan.

In addition, the Company's Board of Directors and shareholders approved the Capital Southwest Corporation 2021 Non-Employee Director Restricted Stock Plan (the "Non-Employee Director Plan"), which became effective on July 27, 2022, as part of the compensation package for non-employee directors of the Board of Directors. In connection therewith, on May 16, 2022, we received an exemptive order that supersedes the Order (the "Superseding Order") and will cover both employees and non-employee directors of the Board of Directors. The following table summarizes certain information relating to shares repurchased in connection with the vesting of restricted stock awards:


	Three Months Ended December 31,
	2022		2021
Number of shares repurchased	19,917		31,492
Aggregate cost of shares repurchased (in thousands)	$	380	$	862
Weighted average price per share	$	19.09	$	27.38

	Nine Months Ended December 31,
	2022		2021
Number of shares repurchased	49,590		52,124
Aggregate cost of shares repurchased (in thousands)	$	1,021	$	1,408
Weighted average price per share	$	20.59	$	27.01

On July 28, 2021, the Company's Board of Directors approved a share repurchase program authorizing the Company to repurchase up to $20 million of its outstanding shares of common stock in the open market at certain thresholds below its NAV per share, in accordance with guidelines specified in Rules 10b5-1(c)(1)(i)(B) and 10b-18 under the Exchange Act. On August 31, 2021, the Company entered into a share repurchase agreement, which became effective immediately, and the Company will cease purchasing its common stock under the share repurchase program upon the earlier of, among other things: (1) the date on which the aggregate purchase price for all shares equals $20 million including, without limitation, all applicable fees, costs and expenses; or (2) upon written notice by the Company to the broker that the share repurchase agreement is terminated.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Share-Based Payment Arrangement [Abstract]

STOCK BASED COMPENSATION PLANS

9 Months Ended

Dec. 31, 2022

STOCK BASED COMPENSATION PLANS

Under the 2010 Plan and the 2021 Employee Plan, a restricted stock award is an award of shares of our common stock, which have full voting and dividend rights but are restricted with regard to sale or transfer. Restricted stock awards are independent of stock grants and are generally subject to forfeiture if employment terminates prior to these restrictions lapsing. Unless otherwise specified in the award agreement, these shares vest in equal annual installments over a four-year period from the grant date and are expensed over the vesting period starting on the grant date.

In connection with the termination of the 2010 Plan, the Company’s Board of Directors and shareholders approved the 2021 Employee Plan as part of the compensation packages for its employees, the terms of which are, in all material respects, identical to the 2010 Plan. The 2021 Employee Plan makes available for issuance 1,200,000 shares of common stock. As of December 31, 2022, there are 1,002,633 shares of common stock available for issuance under the 2021 Employee Plan.

In addition, the Company's Board of Directors and shareholders approved the Non-Employee Director Plan as part of the compensation package for non-employee directors of the Board of Directors. Under the Non-Employee Director Plan, at the beginning of each one-year term of service on our Board, each non-employee director will receive a number of shares equivalent to $50,000 based on the market value at the close of the Nasdaq Global Select Market on the date of grant. These shares will vest one year from the date of the grant and are expensed over the one-year term of non-employee directors. The Non-Employee Director Plan makes available for issuance 120,000 shares of common stock. As

of December 31, 2022, there are 107,895 shares of common stock available for issuance under the Non-Employee Director Plan.

We expense the cost of the restricted stock awards, which is determined to equal the fair value of the restricted stock award at the date of grant on a straight-line basis over the requisite service period. For these purposes, the fair value of the restricted stock award is determined based upon the closing price of our common stock on the date of the grant.

During the three months ended December 31, 2022 and 2021, we recognized total share based compensation expense of $1.0 million (of which $62.9 thousand was related to restricted stock issued to non-employee directors) and $0.8 million, respectively, related to the restricted stock issued. During the nine months ended December 31, 2022 and 2021, we recognized total share based compensation expense of $2.9 million (of which $98.4 thousand was related to restricted stock issued to non-employee directors) and $2.8 million, respectively, related to the restricted stock issued.

During the three months ended June 30, 2021, the Company modified restricted stock awards to accelerate vesting of the unvested awards as of the separation date for one employee. The Company accounted for this as a modification of awards and recognized incremental compensation cost of $0.6 million. The incremental compensation cost is measured as the excess of the fair value of the modified award over the fair value of the original award immediately before its terms were modified and recognized as compensation cost on the date of modification for vested awards.

As of December 31, 2022, the total remaining unrecognized compensation expense related to non-vested restricted stock awards was $8.0 million, which will be amortized over the weighted-average vesting period of approximately 2.6 years.

The following table summarizes the restricted stock outstanding under the 2010 Plan and the 2021 Employee Plan as of December 31, 2022:


		Weighted Average		Weighted Average
		Fair Value Per		Remaining Vesting
Restricted Stock Awards	Number of Shares	Share at grant date		Term (in Years)
Unvested at March 31, 2022	395,993	$	21.48	2.4
Granted	199,042	21.25		3.4
Vested	(148,774)	20.49		—
Forfeited	(4,925)	23.52		—
Unvested at December 31, 2022	441,336	$	21.48	2.6

The following table summarizes the restricted stock outstanding under the Non-Employee Director Plan as of December 31, 2022:


		Weighted Average		Weighted Average
		Fair Value Per		Remaining Vesting
Restricted Stock Awards	Number of Shares	Share at grant date		Term (in Years)
Unvested at March 31, 2022	—	$	—	0
Granted	12,105	20.66		0.6
Vested	—	—		—
Forfeited	—	—		—
Unvested at December 31, 2022	12,105	$	20.66	0.6

OTHER EMPLOYEE COMPENSATION	9 Months Ended
OTHER EMPLOYEE COMPENSATION	Dec. 31, 2022
Retirement Benefits [Abstract]
OTHER EMPLOYEE COMPENSATION	OTHER EMPLOYEE COMPENSATIONWe established a 401(k) plan (the “401K Plan”) effective October 1, 2015. All full-time employees are eligible to participate in the 401K Plan. The 401K Plan permits employees to defer a portion of their total annual compensation up to the Internal Revenue Service annual maximum based on age and eligibility. We made contributions to the 401K Plan of up to 4.5% of the Internal Revenue Service’s annual maximum eligible compensation, all of which is fully vested immediately. During the three months ended December 31, 2022 and 2021, we made matching contributions of approximately $28.6 thousand and $25.9 thousand, respectively. During the nine months ended December 31, 2022 and 2021, we made matching contributions of approximately $158.1 thousand and $133.9 thousand, respectively.

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Commitments

In the normal course of business, the Company is a party to financial instruments with off-balance sheet risk, consisting primarily of unused commitments to extend financing to the Company’s portfolio companies. Because commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. Additionally, our commitment to fund delayed draw term loans generally is triggered upon the satisfaction of certain pre-negotiated terms and conditions, such as meeting certain financial performance hurdles or financial covenants, which may limit a borrower's ability to draw on such delayed draw term loans.

The balances of unused commitments to extend financing as of December 31, 2022 and March 31, 2022 were as follows (amounts in thousands):


	December 31,		March 31,
Portfolio Company	2022		2022
Revolving Loans

Acacia BuyerCo V LLC	$	2,000	$	—
Acceleration, LLC	5,000		—
Air Conditioning Specialist, Inc.	1,000		1,000
American Teleconferencing Services, Ltd. (DBA Premiere Global Services, Inc.)	148		117
ArborWorks, LLC	1,000		3,000
ATS Operating, LLC	2,500		1,500
Cadmium, LLC	—		308
Catbird NYC, LLC	4,000		4,000
Central Medical Supply LLC	1,200		1,200
Dynamic Communities, LLC	—		500
Exact Borrower, LLC	2,500		—
Fast Sandwich, LLC	—		3,100
FM Sylvan, Inc.	10,000		—
Gains Intermediate, LLC	2,500		—
GrammaTech, Inc.	2,500		2,500
GS Operating, LLC	—		1,540
Gulf Pacific Acquisition, LLC	757		—
ISI Enterprises, LLC	1,200		1,200
ITA Holdings Group, LLC	—		1,250
Klein Hersh, LLC	—		938
Lash OpCo, LLC	247		481
Lighting Retrofit International, LLC (DBA Envocore)	2,083		2,083
Lightning Intermediate II, LLC	1,852		—
Mako Steel LP	283		943
Microbe Formulas LLC	1,627		—
Muenster Milling Company, LLC	7,000		5,000
NeuroPsychiatric Hospitals, LLC	600		600
New Skinny Mixes, LLC	4,000		—
NinjaTrader, Inc.	2,500		2,500
NWN Parent Holdings, LLC	90		1,380
Opco Borrower, LLC (DBA Giving Home Health Care)	667		—
Outerbox, LLC	2,000		—


	December 31,	March 31,
Portfolio Company	2022	2022
Pipeline Technique Ltd.	3,333	—
Roof OpCo, LLC	1,833	3,056
Roseland Management, LLC	1,425	1,425
RTIC Subsidiary Holdings LLC	822	—
Shearwater Research, Inc.	2,446	2,446
SIB Holdings, LLC	205	655
South Coast Terminals LLC	1,935	1,935
Spotlight AR, LLC	2,000	2,000
Student Resource Center, LLC	—	1,333
Systec Corporation (DBA Inspire Automation)	1,500	1,150
Versicare Management LLC	2,500	—
Wall Street Prep, Inc.	1,000	1,000
Well-Foam, Inc.	4,500	4,500
Winter Services Operations, LLC	4,444	2,000
Zenfolio Inc.	—	1,000
Total Revolving Loans	87,197	57,640
Delayed Draw Term Loans
Acacia BuyerCo V LLC	10,000	—
Acceleration, LLC	5,000	—
Central Medical Supply LLC	1,400	1,400
CityVet Inc.	—	7,000
Exact Borrower, LLC	2,500	—
Flip Electronics, LLC	—	2,818
FoodPharma Subsidiary Holdings, LLC	—	5,470
Gains Intermediate, LLC	17,000	—
GS Operating, LLC	—	3,205
Gulf Pacific Acquisition, LLC	1,515	—
Infolinks Media Buyco, LLC	2,250	2,250
KMS, LLC	2,286	4,571
Lash OpCo, LLC	—	2,846
Muenster Milling Company, LLC	—	6,000
NeuroPsychiatric Hospitals, LLC	—	10,000
New Skinny Mixes, LLC	3,000	—
NinjaTrader, Inc.	4,692	4,692
Roof OpCo, LLC	—	4,644
Shearwater Research, Inc.	—	3,262
SIB Holdings, LLC	—	1,871
STATinMED, LLC	119	—
Systec Corporation (DBA Inspire Automation)	3,000	3,000
US CourtScript Holdings, Inc.	5,000	—
Versicare Management LLC	5,000	—
Winter Services Operations, LLC	4,444	4,444
Zips Car Wash, LLC - B	—	3,801


	December 31,		March 31,
Portfolio Company	2022		2022
Total Delayed Draw Term Loans	67,206		71,274
Other
Catbird NYC, LLC	125		125
Infolinks Media Buyco, LLC	412		412
I-45 SLF LLC	4,800		4,800
Total Other	5,337		5,337
Total unused commitments to extend financing	$	159,740	$	134,251

As of December 31, 2022, total revolving and delayed draw loan commitments included commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. As of December 31, 2022, the Company had $0.9 million in letters of credit issued and outstanding under these commitments on behalf of portfolio companies. For all of these letters of credit issued and outstanding, the Company would be required to make payments to third parties if the portfolio companies were to default on their related payment obligations. Of these letters of credit, $0.4 million expire in February 2023, $0.2 million expire in April 2023, and $0.3 million expire in August 2023. As of December 31, 2022, none of the letters of credit issued and outstanding were recorded as a liability on the Company's balance sheet as such letters of credit are considered in the valuation of the investments in the portfolio company.

Effective April 1, 2019, ASC 842 required that a lessee evaluate its leases to determine whether they should be classified as operating or financing leases. The Company previously had an operating lease for its office space that commenced October 1, 2014 and expired February 28, 2022. In March 2021, the Company executed an agreement to lease new office space that commenced on February 1, 2022 and expires September 30, 2032. The Company identified the foregoing as an operating lease.

ASC 842 indicates that an ROU asset and lease liability should be recorded based on the effective date. As such, CSWC recorded an ROU asset, which is included in other assets on the Consolidated Statements of Assets and Liabilities, and a lease liability, which is included in other liabilities on the Consolidated Statements of Assets and Liabilities, as of February 1, 2022. The Company has recorded lease expense on a straight-line basis.

Total lease expense incurred for the three and nine months ended December 31, 2022 was $63.1 thousand and $189.2 thousand, respectively. For the three and nine months ended December 31, 2021, total lease expense incurred was $58.1 thousand and $174.4 thousand, respectively. As of December 31, 2022, the asset related to the operating lease was $1.9 million and the lease liability was $2.9 million. As of December 31, 2022, the remaining lease term was 9.8 years and the discount rate was 6.89%.

The following table shows future minimum payments under the Company's operating leases as of December 31, 2022 (in thousands):


Year ending March 31,	Rent Commitment
2023	$	92
2024	406
2025	416
2026	426
2027	436
Thereafter	2,578
Total	$	4,354

Contingencies

We may, from time to time, be involved in litigation arising out of our operations in the normal course of business or otherwise. Furthermore, third parties may try to seek to impose liability on us in connection with the

activities of our portfolio companies. To our knowledge, we have no currently pending material legal proceedings to which we are party or to which any of our assets are subject.

RELATED PARTY TRANSACTIONS	9 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS As a BDC, we are obligated under the 1940 Act to make available to our portfolio companies significant managerial assistance. “Making available significant managerial assistance” refers to any arrangement whereby we provide significant guidance and counsel concerning the management, operations, or business objectives and policies of a portfolio company. We are also deemed to be providing managerial assistance to all portfolio companies that we control, either by ourselves or in conjunction with others. The nature and extent of significant managerial assistance provided by us will vary according to the particular needs of each portfolio company. During each of the three and nine months ended December 31, 2022 and 2021, we did not receive any management fees from our portfolio companies. As of December 31, 2022 and March 31, 2022, we had dividends receivable from I-45 SLF LLC of $1.9 million and $1.7 million, respectively, which were included in dividends and interest receivables on the Consolidated Statements of Assets and Liabilities. Additionally, we recognized administrative fee income from I-45 SLF LLC of $25.0 thousand and $75.0 thousand, respectively, for the three and nine months ended December 31, 2022, which were included in fee income on the Consolidated Statement of Operations.

SUMMARY OF PER SHARE INFORMATION

9 Months Ended

Dec. 31, 2022

Investment Company [Abstract]

SUMMARY OF PER SHARE INFORMATION

The following presents a summary of per share data for the three and nine months ended December 31, 2022 and 2021 (share amounts presented in thousands).


	Three Months Ended						Nine Months Ended
	December 31,						December 31,
Per Share Data:	2022			2021			2022			2021
Investment income1	$	1.04		$	0.95		$	2.90		$	2.73
Operating expenses1	(0.44)			(0.44)			(1.26)			(1.33)
Income taxes1	0.02			—			—			(0.03)
Net investment income1	0.62			0.51			1.64			1.37
Net realized (loss) gain, net of tax1	(0.36)			0.12			(0.62)			0.23
Net unrealized appreciation (depreciation) on investments, net of tax1	(0.17)			(0.09)			(0.49)			0.19
Realized loss on extinguishment of debt1	—			—			—			(0.76)
Total increase (decrease) from investment operations	0.09			0.54			0.53			1.03
Accretive effect of share issuances and repurchases	0.17			0.24			0.43			1.17
Dividends to shareholders	(0.57)			(0.97)			(1.70)			(2.04)
Issuance of restricted stock1,2	—			—			(0.14)			(0.10)
Common stock withheld for payroll taxes upon vesting of restricted stock	—			(0.01)			(0.01)			(0.03)
Share based compensation expense	0.03			0.04			0.10			0.12
Other3	—			(0.01)			0.18			0.03
(Decrease) increase in net asset value	(0.28)			(0.17)			(0.61)			0.18
Net asset value
Beginning of period	16.53			16.36			16.86			16.01
End of period	$	16.25		$	16.19		$	16.25		$	16.19

Ratios and Supplemental Data
Ratio of operating expenses to average net assets4	2.69		%	2.71		%	7.56		%	8.09		%
Ratio of net investment income to average net assets4	3.71		%	3.08		%	9.78		%	8.31		%
Portfolio turnover	2.19		%	19.44		%	11.04		%	30.11		%
Total investment return4,5	4.31		%	4.25		%	(20.95)		%	23.51		%
Total return based on change in NAV4,6	1.75		%	4.89		%	6.47		%	13.87		%

Per share market value at the end of the period	$	17.10		$	25.28		$	17.10		$	25.28
Weighted-average basic and diluted shares outstanding	31,381			23,433			28,304			22,394
Common shares outstanding at end of period	34,559			23,926			34,559			23,926

1Based on weighted average of common shares outstanding for the period.

2Reflects impact of the different share amounts as a result of issuance or forfeiture of restricted stock during the period.

3Includes the impact of the different share amounts as a result of calculating certain per share data based on the weighted-average basic shares outstanding during the period and certain per share data based on the shares outstanding as of a period end. The balance increases with the increase in variability of shares outstanding throughout the year due to share issuance and repurchase activity.

4Not annualized.

5Total investment return based on purchase of stock at the current market price on the first day and a sale at the current market price on the last day of each period reported on the table and assumes reinvestment of dividends at prices obtained by CSWC’s dividend reinvestment plan during the period. The return does not reflect any sales load that may be paid by an investor.

6Total return based on change in NAV was calculated using the sum of ending NAV plus dividends to shareholders and other non-operating changes during the period, as divided by the beginning NAV, and has not been annualized.

SIGNIFICANT SUBSIDIARIES

9 Months Ended

Dec. 31, 2022

Investment Company [Abstract]

SIGNIFICANT SUBSIDIARIES

I-45 SLF LLC

In September 2015, we entered into a limited liability company agreement with Main Street Capital Corporation ("Main Street") to form I-45 SLF LLC (the "Initial I-45 LLC Agreement"). I-45 SLF LLC began investing in UMM syndicated senior secured loans during the quarter ended December 31, 2015. The initial equity capital commitment to I-45 SLF LLC totaled $85.0 million, consisting of $68.0 million from CSWC and $17.0 million from Main Street. On April 30, 2020, pursuant to the terms of the Initial I-45 LLC Agreement, each of CSWC and Main Street made an additional equity capital commitment of $12.8 million and $3.2 million, respectively, which resulted in a total equity capital commitment to I-45 SLF LLC of $80.8 million and $20.2 million, respectively.

On March 11, 2021, the Company and Main Street entered into the Second Amended and Restated Limited Liability Company Operating Agreement (the "Amendment"), which increased the current profits interest that is allocated to the Company on a pro rata basis from (a) 75.6% to (b) an amount equal to: (i) 76.2625% as of the date of the Amendment through the quarter ended March 31, 2021; (ii) 76.925% for quarter ended June 30, 2021; (iii) 77.5875% for the quarter ended September 30, 2021; and (iv) 78.25% for the quarter ended December 31, 2021 and periods thereafter.

On March 25, 2021, I-45 SLF LLC declared a return of capital dividend to its members in the amount of $10.0 million. As of December 31, 2022, total funded equity capital totaled $95.0 million, consisting of $76.0 million from CSWC and $19.0 million from Main Street. CSWC owns 80% of I-45 SLF LLC and has a current profits interest of 78.25%, while Main Street owns 20% and has a current profits interest of 21.75%. I-45 SLF LLC's Board of Managers makes all investment and operational decisions for the fund, and consists of equal representation from CSWC and Main Street.

As of December 31, 2022 and March 31, 2022, I-45 SLF LLC had total assets of $166.2 million and $189.1 million, respectively. I-45 SLF LLC had approximately $161.0 million and $176.7 million of total investments at fair value as of December 31, 2022 and March 31, 2022, respectively. The portfolio companies in I-45 SLF LLC are in industries similar to those in which CSWC may invest directly. During the three months ended December 31, 2022, I-45 SLF LLC declared a total dividend of $2.4 million of which $1.9 million was paid to CSWC in January 2023.

Additionally, I-45 SLF LLC closed on a $75.0 million 5-year senior secured credit facility (the “I-45 credit facility”) in November 2015. The I-45 credit facility includes an accordion feature which will allow I-45 SLF LLC to achieve leverage of approximately 2x debt-to-equity. Borrowings under the I-45 credit facility are secured by all of the assets of I-45 SLF LLC and bear interest at a rate equal to LIBOR plus 2.5% per annum. During the year ended March 31, 2017, I-45 SLF LLC increased debt commitments outstanding by an additional $90.0 million by adding three additional lenders to the syndicate, bringing total debt commitments to $165.0 million. In July 2017, the I-45 credit facility was amended to extend the maturity to July 2022. Additionally, the amendment reduced the interest rate on borrowings to LIBOR plus 2.4% per annum. In November 2019, the I-45 credit facility was amended to extend the maturity to November 2024 and to reduce the interest rate on borrowings to LIBOR plus 2.25% per annum. On April 30, 2020, the I-45 credit facility was amended to permanently reduce the I-45 credit facility amount through a prepayment of $15.0 million and to change the minimum utilization requirements. In March 2021, the I-45 credit facility was amended to extend the maturity to March 25, 2026 and to reduce the interest rate on borrowings to LIBOR plus 2.15%. Under the I-45 credit facility, $104.0 million has been drawn as of December 31, 2022.

Below is certain summarized financial information for I-45 SLF LLC as of December 31, 2022 and March 31, 2022 and for the three and nine months ended December 31, 2022 and 2021 (amounts in thousands):


	December 31, 2022		March 31, 2022
Selected Balance Sheet Information:
Investments, at fair value (cost $184,529 and $187,714)	$	160,998	$	176,704
Cash and cash equivalents	2,794		9,949
Interest receivable	1,343		850
Accounts receivable	269		123
Deferred financing costs and other assets	831		1,518
Total assets	$	166,235	$	189,144

Senior credit facility payable	$	104,000	$	114,500
Other liabilities	2,654		2,596
Total liabilities	$	106,654	$	117,096
Members’ equity	59,581		72,048
Total liabilities and members' equity	$	166,235	$	189,144


	Three Months Ended				Nine Months Ended
	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Selected Statement of Operations Information:
Total revenues	$	4,648	$	3,114	$	12,217	$	9,262
Total expenses	(2,195)		(1,023)		(5,253)		(3,041)
Net investment income	2,453		2,091		6,964		6,221
Net unrealized depreciation	(4,031)		(2,405)		(12,522)		(3,603)
Net realized (losses) gains	(29)		58		42		231
Net (decrease) increase in members’ equity resulting from operations	$	(1,607)	$	(256)	$	(5,516)	$	2,849

Below is a summary of I-45 SLF LLC’s portfolio, followed by a listing of the individual loans in I-45 SLF LLC’s portfolio as of December 31, 2022 and March 31, 2022 (in thousands):

I-45 SLF LLC Loan Portfolio as of December 31, 2022


				Current
		Investment	Maturity	Interest
Portfolio Company	Industry	Type	Date	Rate1	Principal		Cost		Fair Value2
AAC New Holdco Inc.	Healthcare services	First Lien	6/25/2025	18.00% PIK	$	2,140	$	2,140	$	2,108
		304,075 shares common stock	—	—	—		1,449		581
		Warrants (Expiration - December 11, 2025)	—	—	—		482		193
ADS Tactical, Inc.	Aerospace & defense	First Lien	3/19/2026	L+5.75% (Floor 1.00%)	6,142		6,052		5,528
American Teleconferencing Services, Ltd.3	Telecommunications	Revolving Loan	1/31/2023	P+5.50% (Floor 2.00%)	992		986		56
		First Lien	6/8/2023	P+5.50% (Floor 2.00%)	5,597		5,566		315
ATX Networks (Toronto) Corporation	Technology products & components	First Lien	9/1/2026	L+7.50%, (Floor 1.00%)	2,276		2,270		2,128
		Senior Subordinated Debt	9/1/2028	10.00% PIK	1,136		1,136		869
		196 Class A units	—	—	—		—		1,218
Burning Glass Intermediate Holding Company, Inc.	Software & IT services	Revolving Loan4	6/10/2028	L+5.00% (Floor 1.00%)	—		(5)		—
		First Lien	6/10/2028	L+5.00% (Floor 1.00%)	3,165		3,119		3,165
Corel Inc.	Software & IT services	First Lien	7/2/2026	L+5.00%	6,531		6,392		6,104
Emerald Technologies (U.S.) Acquisitionco, Inc.	Technology products & components	First Lien	12/29/2027	SOFR+6.25% (Floor 1.00%)	4,514		4,456		4,284
Evergreen AcqCo 1 LP	Consumer products & retail	First Lien	4/26/2028	SOFR+5.50% (Floor 0.75%)	8,117		8,009		7,867
Evergreen North America Acquisitions, LLC	Industrial services	First Lien	8/13/2026	L+6.75% (Floor 1.00%)	6,690		6,586		6,689
Geo Parent Corporation	Building & infrastructure products	First Lien	12/19/2025	SOFR+5.25%	6,787		6,758		6,447
Infogain Corporation	Software & IT services	First Lien	7/28/2028	SOFR+5.75% (Floor 1.00%)	4,748		4,688		4,748
InfoGroup Inc.	Software & IT services	First Lien	4/3/2023	L+5.00% (Floor 1.00%)	2,828		2,826		2,354

Current

Investment

Maturity

Interest

Portfolio Company

Industry

Type

Date

Rate1

Principal

Cost

Fair Value2

Integro Parent Inc.

Business services

First Lien

5/8/2023

SOFR+12.50% PIK

(Floor 1.00%)

397

361

Intermedia Holdings, Inc.

Software & IT services

First Lien

7/21/2025

L+6.00%

(Floor 1.00%)

6,625

6,575

5,118

Inventus Power, Inc.

Technology products & components

First Lien

3/29/2024

SOFR+5.00%

(Floor 1.00%)

6,878

6,847

6,809

INW Manufacturing, LLC

Food, agriculture, & beverage

First Lien

3/25/2027

L+5.75%

(Floor 0.75%)

2,813

2,746

2,405

Isagenix International, LLC3

Consumer products & retail

First Lien

6/14/2025

L+7.75%

(Floor 1.00%)

1,650

1,641

502

KORE Wireless Group Inc.

Telecommunications

First Lien

12/20/2024

SOFR+5.50%

5,611

5,595

5,415

Lab Logistics, LLC

Healthcare services

First Lien

9/25/2023

SOFR+7.25%

(Floor 1.00%)

10,073

10,024

10,003

Lash OpCo, LLC

Consumer products & retail

First Lien

3/18/2026

L+7.00%

(Floor 1.00%)

6,128

6,007

5,981

Lift Brands, Inc.

Consumer services

Tranche A

6/29/2025

L+7.50%

(Floor 1.00%)

2,483

2,409

Tranche B

6/29/2025

9.50%

592

533

Tranche C

6/29/2025

—

565

508

1,051 shares common stock

—

749

553

Lightbox Intermediate, L.P.

Software & IT services

First Lien

5/9/2026

L+5.00%

6,894

6,846

6,653

LOGIX Holdings Company, LLC

Telecommunications

First Lien

12/23/2024

L+5.75%

(Floor 1.00%)

4,443

4,430

3,666

Mills Fleet Farm Group LLC

Consumer products & retail

First Lien

10/24/2024

L+6.25%

(Floor 1.00%)

4,491

4,459

4,401

National Credit Care

Consumer services

First Lien - Term Loan A

12/23/2026

L+6.50%

(Floor 1.00%)

2,159

2,123

2,144

First Lien - Term Loan B

12/23/2026

L+7.50%

(Floor 1.00%)

2,159

2,123

2,144

NBG Acquisition, Inc.

Wholesale

First Lien

4/26/2024

L+5.50%

(Floor 1.00%)

2,606

2,593

847

NinjaTrader, Inc.

Financial services

First Lien

12/18/2024

L+6.25%

(Floor 1.00%)

5,000

4,931

4,975

Research Now Group, Inc.

Business services

First Lien

12/20/2024

L+5.50%

(Floor 1.00%)

5,889

5,847

4,458

Retail Services WIS Corporation

Business services

First Lien

5/20/2025

L+7.75%

(Floor 1.00%)

2,864

2,827

2,807

SIB Holdings, LLC

Business services

First Lien

10/29/2026

L+6.25%

(Floor 1.00%)

2,948

2,900

2,859

Current

Investment

Maturity

Interest

Portfolio Company

Industry

Type

Date

Rate1

Principal

Cost

Fair Value2

Stellant Midco, LLC

Aerospace & defense

First Lien

10/2/2028

SOFR+5.50%

(Floor 0.75%)

2,271

2,252

2,135

Tacala, LLC

Consumer products & retail

First Lien

2/5/2027

L+3.50%

(Floor 0.75%)

992

950

957

Second Lien

2/4/2028

L+7.50%

(Floor 0.75%)

6,000

5,956

5,468

TEAM Services Group, LLC

Healthcare services

First Lien

12/20/2027

L+5.00%

(Floor 1.00%)

6,637

6,597

6,338

UniTek Global Services, Inc.

Telecommunications

First Lien

8/20/2024

SOFR+5.50%, 2.00% PIK

(Floor 1.00%)

2,853

2,845

2,692

U.S. TelePacific Corp.

Telecommunications

First Lien

5/1/2026

SOFR+1.00%, 7.25% PIK

(Floor 1.00%)

5,532

2,068

Veregy Consolidated, Inc.

Environmental services

First Lien

11/3/2027

L+6.00%

(Floor 1.00%)

1,960

1,956

1,715

Vida Capital, Inc.

Financial services

First Lien

10/1/2026

L+6.00%

3,340

3,308

2,605

Wahoo Fitness Acquisition, LLC

Consumer products & retail

First Lien

8/14/2028

SOFR+5.75%

(Floor 1.00%)

4,875

4,751

2,803

YS Garments, LLC

Consumer products & retail

First Lien

8/9/2024

L+5.50%

(Floor 1.00%)

4,188

4,172

4,012

Total Investments

184,529

160,998

1Represents the interest rate as of December 31, 2022. All interest rates are payable in cash, unless otherwise noted. The majority of investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”), Prime (“P”) or Secured Overnight Financing Rate ("SOFR"), which reset daily, monthly, quarterly, or semiannually. For each investment, the Company has provided the spread over LIBOR, Prime, or SOFR in effect at December 31, 2022. Certain investments are subject to an interest rate floor.

2Represents the fair value determined utilizing a similar process as the Company in accordance with ASC 820. However, the determination of such fair value is determined by the Board of Managers of I-45 SLF LLC. It is not included in the Company’s Board of Directors’ valuation process described elsewhere herein.

3Investment is on non-accrual status as of December 31, 2022, meaning the Company has ceased to recognize interest income on the investment.

4The investment has approximately $0.4 million in an unfunded revolving loan commitment as of December 31, 2022.

I-45 SLF LLC Loan Portfolio as of March 31, 2022


				Current
		Investment	Maturity	Interest
Portfolio Company	Industry	Type	Date	Rate1	Principal		Cost2		Fair Value3
AAC New Holdco Inc.	Healthcare services	First Lien	6/25/2025	10.00%, 8.00% PIK	$	1,899	$	1,899	$	1,833
		304,075 shares common stock	—	—	—		1,449		1,449
		Warrants (Expiration - December 11, 2025)	—	—	—		482		482
ADS Tactical, Inc.	Aerospace & defense	First Lien	3/19/2026	L+5.75% (Floor 1.00%)	6,394		6,283		6,133
American Teleconferencing Services, Ltd.4	Telecommunications	Revolving Loan	6/30/2022	P+5.50%	1,027		1,021		64
		First Lien	6/8/2023	P+5.50%	5,598		5,566		308
ATX Networks (Toronto) Corporation	Technology products & components	First Lien	9/1/2026	L+7.50% (Floor 1.00%)	2,617		2,610		2,499
		Senior Subordinated Debt	9/1/2028	10.00% PIK	1,081		1,081		729
		196 Class A units	—	—	—		—		—
Burning Glass Intermediate Holding Company, Inc.	Software & IT services	Revolving Loan5	6/10/2028	L+5.00% (Floor 1.00%)	74		67		67
		First Lien	6/10/2028	L+5.00% (Floor 1.00%)	3,189		3,140		3,189
Corel, Inc.	Software & IT services	First Lien	7/2/2026	L+5.00%	6,803		6,650		6,805
Emerald Technologies (U.S.) Acquisitionco, Inc.	Technology products & components	First Lien	12/29/2027	SOFR +6.25% (Floor 1.00%)	3,125		3,063		3,078
Evergreen AcqCo 1 LP	Consumer products & retail	First Lien	4/26/2028	L+5.50% (Floor 0.75%)	4,179		4,142		4,158
Evergreen North America Acquisitions, LLC	Industrial services	First Lien	8/13/2026	L+6.75% (Floor 1.00%)	6,740		6,623		6,740
Geo Parent Corporation	Building & infrastructure products	First Lien	12/19/2025	L+5.25%	6,840		6,809		6,806
GS Operating, LLC	Distribution	First Lien	1/3/2028	SOFR +6.00% (Floor 0.75%)	4,988		4,891		4,988
Infogain Corporation	Software & IT services	First Lien	7/28/2028	L+5.75% (Floor 1.00%)	4,784		4,719		4,769
InfoGroup Inc.	Software & IT services	First Lien	4/3/2023	L+5.00% (Floor 1.00%)	2,850		2,845		2,704
Integro Parent Inc.	Business services	First Lien	10/28/2022	L+5.75% (Floor 1.00%)	3,217		3,209		3,043

Current

Investment

Maturity

Interest

Portfolio Company

Industry

Type

Date

Rate1

Principal

Cost2

Fair Value3

Intermedia Holdings, Inc.

Software & IT services

First Lien

7/21/2025

L+6.00%

(Floor 1.00%)

5,677

5,659

5,638

Inventus Power, Inc.

Technology products & components

First Lien

3/29/2024

SOFR +5.00%

(Floor 1.00%)

6,930

6,884

6,791

INW Manufacturing, LLC

Food, agriculture, & beverage

First Lien

3/25/2027

L+5.75%

(Floor 0.75%)

2,925

2,867

Isagenix International, LLC

Consumer products & retail

First Lien

6/14/2025

L+5.75%

(Floor 1.00%)

1,685

1,677

1,088

KORE Wireless Group Inc.

Telecommunications

First Lien

12/20/2024

L+5.50%

4,658

4,639

4,640

Lab Logistics, LLC

Healthcare services

First Lien

9/25/2023

L+7.25%

(Floor 1.00%)

6,242

6,213

6,242

Lash OpCo, LLC

Consumer products & retail

First Lien

3/18/2026

L+7.00%

(Floor 1.00%)

4,988

4,881

4,878

Delayed Draw Term Loan6

3/18/2026

L+7.00%

(Floor 1.00%)

1,187

1,152

1,161

Lift Brands, Inc.

Consumer services

Tranche A

6/29/2025

L+7.50%

(Floor 1.00%)

2,502

2,252

Tranche B

6/29/2025

9.50% PIK

583

437

Tranche C

6/29/2025

—

565

564

423

1,051 shares common stock

—

749

Lightbox Intermediate, L.P.

Software & IT services

First Lien

5/9/2026

L+5.00%

4,948

4,914

4,874

LOGIX Holdings Company, LLC

Telecommunications

First Lien

12/23/2024

L+5.75%

(Floor 1.00%)

5,826

5,807

5,491

Mills Fleet Farm Group LLC

Consumer products & retail

First Lien

10/24/2024

L+6.25%

(Floor 1.00%)

4,623

4,584

4,623

National Credit Care, LLC

Consumer services

First Lien - Term Loan A

12/23/2026

L+6.50%

(Floor 1.00%)

2,500

2,453

2,483

First Lien - Term Loan B

12/23/2026

L+7.50%

(Floor 1.00%)

2,500

2,453

2,483

NBG Acquisition, Inc.

Wholesale

First Lien

4/26/2024

L+5.50%

(Floor 1.00%)

2,663

2,647

1,807

NinjaTrader, Inc.

Financial services

First Lien

12/18/2024

L+6.25%

(Floor 1.00%)

5,000

4,908

5,000

NorthStar Group Services, Inc.

Environmental services

First Lien

11/9/2026

L+5.50%

(Floor 1.00%)

2,961

2,948

2,950

Research Now Group, Inc.

Business services

First Lien

12/20/2024

L+5.50%

(Floor 1.00%)

4,936

4,861

Retail Services WIS Corporation

Business services

First Lien

5/20/2025

L+7.75%

(Floor 1.00%)

2,959

2,912

2,914

Current

Investment

Maturity

Interest

Portfolio Company

Industry

Type

Date

Rate1

Principal

Cost2

Fair Value3

SIB Holdings, LLC

Business services

First Lien

10/29/2026

L+6.00%

(Floor 1.00%)

3,000

2,945

2,958

Stellant Midco, LLC

Aerospace & defense

First Lien

10/2/2028

L+5.50%

(Floor 0.75%)

2,289

2,267

2,254

Tacala, LLC

Consumer products & retail

Second Lien

2/7/2028

L+7.50%

(Floor 0.75%)

5,000

4,991

4,944

TEAM Services Group, LLC

Healthcare services

First Lien

12/20/2027

L+5.00%

(Floor 1.00%)

6,687

6,644

6,637

TestEquity, LLC

Capital equipment

First Lien

4/28/2022

L+6.25%

(Floor 1.00%)

3,805

3,804

3,805

First Lien - Term Loan B

4/28/2022

L+6.25%

(Floor 1.00%)

942

UniTek Global Services, Inc.

Telecommunications

First Lien

8/20/2024

L+5.50%, 2.00% PIK

(Floor 1.00%)

2,814

2,802

2,627

U.S. TelePacific Corp.

Telecommunications

First Lien

5/1/2026

L+1.00%, 7.25% PIK

(Floor 1.00%)

5,239

3,714

Veregy Consolidated, Inc.

Environmental services

First Lien

11/3/2027

L+6.00%

(Floor 1.00%)

1,975

1,970

1,936

Vida Capital, Inc.

Financial services

First Lien

10/1/2026

L+6.00%

3,565

3,531

3,283

Wahoo Fitness Acquisition, LLC

Consumer products & retail

First Lien

8/14/2028

L+5.75%

(Floor 1.00%)

4,969

4,833

4,869

YS Garments, LLC

Consumer products & retail

First Lien

8/9/2024

L+5.50%

(Floor 1.00%)

4,282

4,265

4,239

Total Investments

187,714

176,704

1Represents the interest rate as of March 31, 2022. All interest rates are payable in cash, unless otherwise noted. The majority of investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”), Secured Overnight Financing Rate ("SOFR") or Prime (“Prime”) which reset daily, monthly, quarterly, or semiannually. For each, the Company has provided the spread over LIBOR, SOFR or Prime in effect at March 31, 2022. Certain investments are subject to an interest rate floor. Certain investments, as noted, accrue payment-in-kind ("PIK") interest.

2Represents amortized cost.

3Represents the fair value determined utilizing a similar process as the Company in accordance with ASC 820. However, the determination of such fair value is determined by the Board of Managers of I-45 SLF LLC. It is not included in the Company’s Board of Directors’ valuation process described elsewhere herein.

4Investment is on non-accrual status as of March 31, 2022, meaning the Company has ceased to recognize interest income on the investment.

5The investment has approximately $0.3 million in an unfunded revolving loan commitment as of March 31, 2022.

6The investment has approximately $0.8 million in an unfunded delayed draw term loan commitment as of March 31, 2022.

SUBSEQUENT EVENTS	9 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTSOn January 25, 2023, the Board of Directors declared a total dividend of $0.58 per share, comprised of a regular dividend of $0.53 and a supplemental dividend of $0.05, for the quarter ending March 31, 2023. The record date for the dividend is March 15, 2023. The payment date for the dividend is March 31, 2023.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements have been prepared in accordance with U.S. GAAP. We meet the definition of an investment company and follow the accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 – Financial Services – Investment Companies (“ASC 946”). Under rules and regulations applicable to investment companies, we are generally precluded from consolidating any entity other than another investment company, subject to certain exceptions. One of the exceptions to this general principle occurs if the investment company has an investment in an operating company that provides services to the investment company. Accordingly, the consolidated financial statements include the Taxable Subsidiary. The consolidated financial statements are presented in conformity with U.S. GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual consolidated financial statements prepared in accordance with U.S. GAAP are omitted. In the opinion of our management, the unaudited consolidated financial results included herein contain all adjustments, consisting solely of normal recurring accruals, considered necessary for the fair presentation of consolidated financial statements for the interim periods included herein. The results of operations for the three and nine months ended December 31, 2022 are not necessarily indicative of the operating results to be expected for the full fiscal year. Also, the unaudited consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal years ended March 31, 2022 and 2021. Consolidated financial statements prepared on a U.S. GAAP basis require management to make estimates and assumptions that affect the amounts and disclosures reported in the consolidated financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein.
Investments	Portfolio Investment Classification We classify our investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, “Control Investments” are generally defined as investments in which we own more than 25% of the voting securities; “Affiliate Investments” are generally defined as investments in which we own between 5% and 25% of the voting securities, and the investments are not classified as “Control Investments”; and “Non-Control/Non-Affiliate Investments” are generally defined as investments that are neither “Control Investments” nor “Affiliate Investments.” Under the 1940 Act, a BDC must meet certain requirements, including investing at least 70% of its total assets in qualifying assets. As of December 31, 2022, the Company has 86.5% of its assets in qualifying assets. The principal categories of qualifying assets relevant to our business are: (1)securities purchased in transactions not involving any public offering from the issuer of such securities, which issuer (subject to certain limited exceptions) is an "eligible portfolio company," or from any person who is, or has been during the preceding 13 months, an affiliated person of an eligible portfolio company, or from any other person, subject to such rules as may be prescribed by the Securities and Exchange Commission ("SEC"); (2)securities of any eligible portfolio company that we control; (3)securities purchased in a private transaction from a U.S. issuer that is not an investment company or from an affiliated person of the issuer, or in transactions incident thereto, if the issuer is in bankruptcy and subject to reorganization or if the issuer, immediately prior to the purchase of its securities was unable to meet its obligations as they came due without material assistance other than conventional lending or financing arrangements; (4)securities of an eligible portfolio company purchased from any person in a private transaction if there is no readily available market for such securities and we already own 60% of the outstanding equity of the eligible portfolio company; (5)securities received in exchange for or distributed on or with respect to securities described in (1) through (4) above, or pursuant to the exercise of warrants or rights relating to such securities; and (6)cash, cash equivalents, U.S. government securities or high-quality debt securities maturing in one year or less from the time of investment. Additionally, in order to qualify for RIC tax treatment for U.S. federal income tax purposes, we must, among other things meet the following requirements: (1) continue to maintain our election as a BDC under the 1940 Act at all times during each taxable year; (2) derive in each taxable year at least 90% of our gross income from dividends, interest, payments with respect to certain securities, loans, gains from the sale of stock or other securities, net income from certain "qualified publicly traded partnerships," or other income derived with respect to our business of investing in such stock or securities; and (3) diversify our holdings in accordance with two diversification requirements: (a) diversify our holdings such that at the end of each quarter of the taxable year at least 50% of the value of our assets consists of cash, cash equivalents, U.S. Government securities, securities of other RICs, and such other securities if such other securities of any one issuer do not represent more than 5% of the value of our assets or more than 10% of the outstanding voting securities of the issuer; and (b) diversify our holdings such that no more than 25% of the value of our assets is invested in the securities, other than U.S. government securities or securities of other RICs, (i) of one issuer, (ii) of two or more issuers that are controlled, as determined under applicable Code rules, by us and that are engaged in the same or similar or related trades or businesses or (iii) of certain "qualified publicly traded partnerships" (collectively, the "Diversification Requirements"); The two Diversification Requirements must be satisfied quarterly. If a RIC satisfies the Diversification Requirements for one quarter, and then, due solely to fluctuations in market value, fails to meet one of the Diversification Requirements in the next quarter, it retains RIC tax treatment. A RIC that fails to meet the Diversification Requirements as a result of a nonqualified acquisition may be subject to excess taxes unless the nonqualified acquisition is disposed of and the Diversification Requirements are satisfied within 30 days of the close of the quarter in which the Diversification Requirements are failed. Investments Investments are stated at fair value and are reviewed and approved by our Board of Directors as described in the Notes to the Consolidated Schedule of Investments and Notes 3 and 4 below. Investments are recorded on a trade date basis. Net Realized Gains or Losses and Net Unrealized Appreciation or Depreciation Realized gains or losses are measured by the difference between the net proceeds from the sale or redemption of an investment or a financial instrument and the cost basis of the investment or financial instrument, without regard to unrealized appreciation or depreciation previously recognized, and includes investments written-off during the period net of recoveries and realized gains or losses from in-kind redemptions. Net unrealized appreciation or depreciation reflects the net change in the fair value of the investment portfolio and financial instruments and the reclassification of any prior period unrealized appreciation or depreciation on exited investments and financial instruments to realized gains or losses. Investment Valuation Process The valuation process is led by the finance department in conjunction with the investment team. The process includes a quarterly review of each investment by our executive officers and investment team. Valuations of each portfolio security are prepared quarterly by the finance department using updated financial and other operational information collected by the investment team. Each investment valuation is then subject to review by the executive officers and investment team. In conjunction with the internal valuation process, we have also engaged multiple independent consulting firms specializing in financial due diligence, valuation, and business advisory services to provide third-party valuation reviews of certain investments. The third-party valuation firms provide a range of values for selected investments, which is presented to CSWC’s executive officers and then subsequently to the Board of Directors. CSWC also uses a standard internal investment rating system in connection with its investment oversight, portfolio management, and investment valuation procedures for its debt portfolio. This system takes into account both quantitative and qualitative factors of the portfolio company and the investments held therein. There is no single standard for determining fair value in good faith, as fair value depends upon the specific circumstances of each individual investment. While management believes our valuation methodologies are appropriate and consistent with market participants, the recorded fair values of our investments may differ significantly from fair values that would have been used had an active market for the securities existed. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the valuations currently assigned. The Board of Directors has the ultimate responsibility for reviewing and determining, in good faith, the fair value of CSWC’s investments in accordance with the 1940 Act.
Fair Value Measurements	Fair Value Measurements We account for substantially all of our financial instruments at fair value in accordance with ASC Topic 820 – Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements, including the categorization of financial instruments into a three-level hierarchy based on the transparency of valuation inputs. ASC 820 requires disclosure of the fair value of financial instruments for which it is practical to estimate such value. We believe that the carrying amounts of our financial instruments such as cash, receivables and payables approximate the fair value of these items due to the short maturity of these instruments. This is considered a Level 1 valuation technique. The carrying value of our credit facility approximates fair value (Level 3 input). See Note 4 below for further discussion regarding the fair value measurements and hierarchy.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents, which consist of cash and highly liquid investments with an original maturity of three months or less at the date of purchase, are carried at cost, which approximates fair value. Cash may be held in a money market fund from time to time, which is a Level 1 security. Cash and cash equivalents includes deposits at financial institutions. We deposit our cash balances in financial institutions and, at times, such balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. At December 31, 2022 and March 31, 2022, cash balances totaling $20.4 million and $10.2 million, respectively, exceeded FDIC insurance limits, subjecting us to risk related to the uninsured balance. All of our cash deposits are held at large established high credit quality financial institutions and management believes that the risk of loss associated with any uninsured balances is remote.
Segment Information	Segment Information We operate and manage our business in a singular segment. As an investment company, we invest in portfolio companies in various industries and geographic areas as discussed in Note 3.
Consolidation	Consolidation As permitted under Regulation S-X and ASC 946, we generally do not consolidate our investment in a portfolio company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to CSWC. Accordingly, we consolidate the results of the Taxable Subsidiary and SBIC I. All intercompany balances have been eliminated upon consolidation.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. We have identified investment valuation and revenue recognition as our most critical accounting estimates.
Interest Income	Interest and Dividend Income Interest and dividend income is recorded on an accrual basis to the extent amounts are expected to be collected. Dividend income is recognized on the date dividends are declared by the portfolio company or at the point an obligation exists for the portfolio company to make a distribution. Discounts/premiums received to par on loans purchased are capitalized and accreted or amortized into income over the life of the loan using the effective interest method. In accordance with our valuation policy, accrued interest and dividend income is evaluated quarterly for collectability. When we do not expect the debtor to be able to service all of its debt or other obligations, we will generally establish a reserve against interest income receivable, thereby placing the loan or debt security on non-accrual status, and cease to recognize interest income on that loan or debt security until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a loan or debt security’s status significantly improves regarding its ability to service debt or other obligations, it will be restored to accrual basis. As of December 31, 2022, investments on non-accrual status represented approximately 0.3% of our total investment portfolio's fair value and approximately 1.4% of its cost. As of March 31, 2022, investments on non-accrual status represented approximately 1.5% of our total investment portfolio's fair value and approximately 2.6% of its cost. To maintain RIC tax treatment, non-cash sources of income such as accretion of interest income may need to be paid out to shareholders in the form of distributions, even though CSWC may not have collected the interest income. For the three and nine months ended December 31, 2022, approximately 3.2% and 3.5%, respectively, of CSWC's total investment income was attributable to non-cash interest income for the accretion of discounts associated with debt investments, net of any premium reduction. For the three and nine months ended December 31, 2021, approximately 3.4% and 3.6%, respectively, of CSWC's total investment income was attributable to non-cash interest income for the accretion of discounts associated with debt investments, net of any premium reduction. Payment-in-Kind Interest The Company currently holds, and expects to hold in the future, some investments in its portfolio that contain PIK interest provisions. The PIK interest, computed at the contractual rate specified in each loan agreement, is added to the principal balance of the loan, rather than being paid to the Company in cash, and is recorded as interest income. Thus, the actual collection of PIK interest may be deferred until the time of debt principal repayment. PIK interest, which is a non-cash source of income, is included in the Company’s taxable income and therefore affects the amount the Company is required to distribute to shareholders to maintain its qualification as a RIC for U.S. federal income tax purposes, even though the Company has not yet collected the cash. Generally, when current cash interest and/or principal payments on a loan become past due, or if the Company otherwise does not expect the borrower to be able to service its debt and other obligations, the Company will place the investment on non-accrual status and will generally cease recognizing PIK interest income on that loan for financial reporting purposes until all principal and interest have been brought current through payment or due to a restructuring such that the interest income is deemed to be collectible. The Company writes off any accrued and uncollected PIK interest when it is determined that the PIK interest is no longer collectible.
Dividends Income	Interest and Dividend Income Interest and dividend income is recorded on an accrual basis to the extent amounts are expected to be collected. Dividend income is recognized on the date dividends are declared by the portfolio company or at the point an obligation exists for the portfolio company to make a distribution. Discounts/premiums received to par on loans purchased are capitalized and accreted or amortized into income over the life of the loan using the effective interest method. In accordance with our valuation policy, accrued interest and dividend income is evaluated quarterly for collectability. When we do not expect the debtor to be able to service all of its debt or other obligations, we will generally establish a reserve against interest income receivable, thereby placing the loan or debt security on non-accrual status, and cease to recognize interest income on that loan or debt security until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a loan or debt security’s status significantly improves regarding its ability to service debt or other obligations, it will be restored to accrual basis. As of December 31, 2022, investments on non-accrual status represented approximately 0.3% of our total investment portfolio's fair value and approximately 1.4% of its cost. As of March 31, 2022, investments on non-accrual status represented approximately 1.5% of our total investment portfolio's fair value and approximately 2.6% of its cost. To maintain RIC tax treatment, non-cash sources of income such as accretion of interest income may need to be paid out to shareholders in the form of distributions, even though CSWC may not have collected the interest income. For the three and nine months ended December 31, 2022, approximately 3.2% and 3.5%, respectively, of CSWC's total investment income was attributable to non-cash interest income for the accretion of discounts associated with debt investments, net of any premium reduction. For the three and nine months ended December 31, 2021, approximately 3.4% and 3.6%, respectively, of CSWC's total investment income was attributable to non-cash interest income for the accretion of discounts associated with debt investments, net of any premium reduction.
Fee Income	Fee Income Fee income, generally collected in advance, includes fees for administration and valuation services rendered by the Company. These fees are typically charged annually and are amortized into income over the year. The Company recognizes nonrecurring fees, including prepayment penalties, waiver fees and amendment fees, as fee income when earned. In addition, the Company may also be entitled to an exit fee that is amortized into income over the life of the loan. Loan exit fees to be paid at the termination of the loan are accreted into fee income over the contractual life of the loan.
Warrants	Warrants In connection with the Company's debt investments, the Company may receive warrants or other equity-related securities from the borrower. The Company determines the cost basis of warrants based upon their respective fair values on the date of receipt in proportion to the total fair value of the debt and warrants received. Any resulting difference between the face amount of the debt and its recorded fair value resulting from the assignment of value to the warrants is treated as original issue discount (“OID”), and accreted into interest income using the effective interest method over the term of the debt investment.
Debt	Debt Issuance Costs Debt issuance costs include commitment fees and other costs related to CSWC’s senior secured credit facility, its unsecured notes (as discussed further in Note 5) and the debentures guaranteed by the SBA (the "SBA Debentures"). The costs in connection with the credit facility have been capitalized and are amortized into interest expense over the term of the credit facility. The costs in connection with the unsecured notes and the SBA Debentures are a direct deduction from the related debt liability and amortized into interest expense over the term of the January 2026 Notes (as defined below), the October 2026 Notes (as defined below) and the SBA Debentures. Deferred Offering Costs Deferred offering costs include registration expenses related to our shelf registration statement and expenses related to the launch of the "at-the-market" ("ATM") program through which we can sell, from time to time, shares of our common stock (the "Equity ATM Program"). These expenses consist primarily of SEC registration fees, legal fees and accounting fees incurred related thereto. These expenses are included in other assets on the Consolidated Statements of Assets and Liabilities. Upon the completion of an equity offering or a debt offering, the deferred expenses are charged to additional paid-in capital or debt issuance costs, respectively. If there are any deferred offering costs remaining at the expiration of the shelf registration statement, these deferred costs are charged to expense. Realized Losses on Extinguishment of Debt Upon the repayment of debt obligations that are deemed to be extinguishments, the difference between the principal amount due at maturity adjusted for any unamortized debt issuance costs is recognized as a loss (i.e., the unamortized debt issuance costs and any "make-whole" premium payment (as discussed in Note 5)) are recognized as a loss upon extinguishment of the underlying debt obligation).
Leases	Leases The Company is obligated under an operating lease pursuant to which it is leasing an office facility from a third party with a remaining term of approximately 10 years. The operating lease is included as an operating lease right-of-use ("ROU") asset and operating lease liability in the accompanying Consolidated Statements of Assets and Liabilities. The Company does not have any financing leases.The ROU asset represents the Company’s right to use an underlying asset for the lease term and the operating lease liability represents the Company’s obligation to make lease payments arising from such lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the remaining lease term. The Company’s lease does not provide an implicit discount rate, and as such the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of the remaining lease payments. Lease expense is recognized on a straight-line basis over the remaining lease term.
Federal Income Taxes	Federal Income Taxes CSWC has elected, and intends to qualify annually, to be treated for U.S. federal income tax purposes as a RIC under Subsection M of the Code. By meeting these requirements, we will not be subject to U.S. federal income taxes at corporate rates on ordinary income or capital gains timely distributed to shareholders. In order to qualify as a RIC, the Company is required to timely distribute to its shareholders at least 90% of investment company taxable income, as defined by the Code, each year. Investment company taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses. Investment company taxable income generally excludes net unrealized appreciation or depreciation, as investment gains and losses are not included in investment company taxable income until they are realized. Depending on the level of taxable income or capital gains earned in a tax year, we may choose to carry forward taxable income or capital gains in excess of current year distributions into the next year and pay a 4% U.S. federal excise tax on such income. Any such carryover taxable income or capital gains must be distributed through a dividend declared on or prior to the later of (1) the filing of the U.S. federal income tax return for the applicable fiscal year and (2) the fifteenth day of the ninth month following the close of the year in which such taxable income was generated. In lieu of distributing our net capital gains for a year, we may decide to retain some or all of our net capital gains. We will be required to pay a 21% corporate rate U.S. federal income tax on any such retained net capital gains. We may elect to treat such retained capital gain as a deemed distribution to shareholders. Under such circumstances, shareholders will be required to include their share of such retained capital gain in income, but will receive a credit for the amount of U.S. federal income tax paid at corporate rates with respect to their shares. As an investment company that qualifies as a RIC, federal income taxes payable on security gains that we elect to retain are accrued only on the last day of our tax year, December 31. Any net capital gains actually distributed to shareholders and properly reported by us as capital gain dividends are generally taxable to the shareholders as long-term capital gains. See Note 6 for further discussion. The Taxable Subsidiary, a wholly-owned subsidiary of CSWC, is not a RIC and is required to pay taxes at the corporate rate of 21%. For tax purposes, the Taxable Subsidiary has elected to be treated as a taxable entity, and therefore is not consolidated for tax purposes and is taxed at normal corporate tax rates based on taxable income and, as a result of its activities, may generate an income tax provision or benefit. The taxable income, or loss, of the Taxable Subsidiary may differ from its book income, or loss, due to temporary book and tax timing differences and permanent differences. This income tax provision, or benefit, if any, and the related tax assets and liabilities, are reflected in our consolidated financial statements. Management evaluates tax positions taken or expected to be taken in the course of preparing the Company’s consolidated financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions with respect to tax at the CSWC level not deemed to meet the “more-likely-than-not” threshold would be recorded as an expense in the current year. Management’s conclusions regarding tax positions will be subject to review and may be adjusted at a later date based on factors including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof. The Company has concluded that it does not have any uncertain tax positions that meet the recognition of measurement criteria of ASC 740, Income Taxes, ("ASC 740") for the current period. Also, we account for interest and, if applicable, penalties for any uncertain tax positions as a component of income tax provision. No interest or penalties expense was recorded during the three and nine months ended December 31, 2022 and 2021. Deferred Taxes Deferred tax assets and liabilities are recorded for losses or income at our taxable subsidiaries using statutory tax rates. A valuation allowance is provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. ASC 740 requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation was enacted. See Note 6 for further discussion.
Stock-Based Compensation	Stock-Based Compensation We account for our share-based compensation using the fair value method, as prescribed by ASC Topic 718, Compensation – Stock Compensation. Accordingly, we recognize share-based compensation cost on a straight-line basis for all share-based payments awards granted to employees. For restricted stock awards, we measure the fair value based upon the market price of our common stock on the date of the grant. For restricted stock awards, we amortize this fair value to share-based compensation expense over the vesting term. We recognize forfeitures as they occur. The unvested shares of restricted stock awarded pursuant to CSWC’s equity compensation plans are participating securities and are included in the basic and diluted earnings per share calculation. The right to grant restricted stock awards under the 2010 Plan terminated on July 18, 2021, ten years after the date that the 2010 Restricted Stock Award Plan (the “2010 Plan”) was approved by the Company’s shareholders pursuant to its terms. In connection with the termination of the 2010 Plan, the Company’s Board of Directors and shareholders approved the Capital Southwest Corporation 2021 Employee Restricted Stock Award Plan (the "2021 Employee Plan"), which became effective on July 28, 2021, as part of the compensation package for its employees, the terms of which are, in all material respects, identical to the 2010 Plan. On July 19, 2021, we received an exemptive order that supersedes the prior exemptive order relating to the 2010 Plan (the “Order”) to permit the Company to (i) issue restricted stock as part of the compensation package for its employees in the 2021 Employee Plan, and (ii) withhold shares of the Company’s common stock or purchase shares of the Company’s common stock from the participants to satisfy tax withholding obligations relating to the vesting of restricted stock pursuant to the 2021 Employee Plan. In addition, the Company's Board of Directors and shareholders approved the Capital Southwest Corporation 2021 Non-Employee Director Restricted Stock Plan (the "Non-Employee Director Plan"), which became effective on July 27, 2022, as part of the compensation package for non-employee directors of the Board of Directors. In connection therewith, on May 16, 2022, we received an exemptive order that supersedes the Order (the "Superseding Order") and covers both employees and non-employee directors of the Board of Directors.
Presentation	Presentation Presentation of certain amounts in the consolidated financial statements for the prior year comparative consolidated financial statements is updated to conform to the current period presentation.
Recently Issued or Adopted Accounting Standards	Recently Issued or Adopted Accounting Standards In March 2020, the FASB issued ASU 2020-04, "Reference rate reform (Topic 848)—Facilitation of the effects of reference rate reform on financial reporting." The amendments in this update provide optional expedients and exceptions for applying U.S. GAAP to certain contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform and became effective upon issuance for all entities. The Company has agreements that have LIBOR as a reference rate with certain portfolio companies and certain lenders. Many of these agreements include an alternative successor rate or language for choosing an alternative successor rate when LIBOR reference is no longer considered to be appropriate. With respect to other agreements, the Company intends to work with its portfolio companies and certain lenders to modify agreements to choose an alternative successor rate. Contract modifications are required to be evaluated in determining whether the modifications result in the establishment of new contracts or the continuation of existing contracts. On December 21, 2022, the FASB issued ASU 2022-06 "Reference rate reform (Topic 848)—Deferral of the Sunset Date of Topic 848," which defers the sunset date of ASC 848 until December 31, 2024. ASU 2022-06 became effective upon issuance. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after December 31, 2024, except for hedging transactions as of December 31, 2024, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The Company does not believe it will have a material impact on its consolidated financial statements or its disclosure and did not utilize the optional expedients and exceptions provided by ASU 2020-04 during the nine months ended December 31, 2022.In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820) - Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions,” which was issued to (1) clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, (2) amend a related illustrative example, and (3) introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The new guidance is effective for interim and annual periods beginning after December 15, 2023. The Company is currently evaluating the impact of the new standard on the Company's consolidated financial statements and related disclosures and does not believe it will have a material impact on its consolidated financial statements or its disclosure.

INVESTMENTS (Tables)

9 Months Ended

Dec. 31, 2022

Schedule of Investments [Abstract]

Schedule of Investments


	Fair Value		Percentage of Total Portfolio at Fair Value		Percentage of Net Assets at Fair Value		Cost		Percentage of Total Portfolio at Cost
	(dollars in thousands)
December 31, 2022:
First lien loans1,2	$	954,000	83.0	%	169.9	%	$	968,597	83.5	%
Second lien loans2	35,446		3.1		6.3		44,050		3.8
Subordinated debt3	852		0.1		0.1		754		0.1
Preferred equity	61,283		5.3		10.9		39,416		3.4
Common equity & warrants	50,840		4.4		9.1		30,895		2.7
I-45 SLF LLC4	47,625		4.1		8.5		76,000		6.5
	$	1,150,046	100.0	%	204.8	%	$	1,159,712	100.0	%

March 31, 2022:
First lien loans1,2	$	739,872	79.0	%	175.8	%	$	745,290	79.4	%
Second lien loans2	52,645		5.6		12.5		55,976		6.0
Subordinated debt3	1,317		0.1		0.3		994		0.1
Preferred equity	44,663		4.8		10.6		25,544		2.7
Common equity & warrants	40,514		4.3		9.6		34,499		3.7
I-45 SLF LLC4	57,603		6.2		13.7		76,000		8.1
	$	936,614	100.0	%	222.5	%	$	938,303	100.0	%

3Included in subordinated debt are unsecured convertible notes with a fair value of $0.5 million and $0.7 million as of December 31, 2022 and March 31, 2022, respectively.


	Fair Value		Percentage of Total Portfolio at Fair Value		Percentage of Net Assets at Fair Value		Cost		Percentage of Total Portfolio at Cost
	(dollars in thousands)
December 31, 2022:
Media & Marketing	$	142,382	12.4	%	25.4	%	$	132,117	11.4	%
Business Services	127,741		11.1		22.7		128,237		11.1
Healthcare Services	108,710		9.5		19.4		123,408		10.6
Consumer Services	90,019		7.8		15.9		89,283		7.7
Consumer Products & Retail	86,771		7.5		15.4		86,298		7.4
Food, Agriculture & Beverage	72,803		6.3		13.0		74,059		6.4
Healthcare Products	67,002		5.8		11.9		67,777		5.8
Technology Products & Components	64,199		5.6		11.4		46,947		4.1
I-45 SLF LLC1	47,625		4.1		8.5		76,000		6.6
Transportation & Logistics	41,939		3.7		7.5		35,923		3.1
Financial Services	40,418		3.5		7.2		31,019		2.7
Software & IT Services	38,572		3.4		6.9		39,844		3.4
Distribution	34,100		3.0		6.1		35,904		3.1
Education	26,426		2.3		4.7		26,046		2.2
Industrial Services	26,233		2.3		4.7		25,900		2.2
Industrial Products	22,387		2.0		4.0		18,839		1.6
Energy Services (Midstream)	22,355		1.9		4.0		23,014		2.0
Environmental Services	19,592		1.7		3.5		24,920		2.2
Specialty Chemicals	17,884		1.6		3.2		17,559		1.5
Telecommunications	17,776		1.5		3.2		21,829		1.9
Energy Services (Upstream)	17,775		1.5		3.2		17,426		1.5
Containers & Packaging	10,537		0.9		1.8		10,672		0.9
Aerospace & Defense	6,800		0.6		1.2		6,691		0.6
	$	1,150,046	100.0	%	204.8	%	$	1,159,712	100.0	%


	Fair Value		Percentage of Total Portfolio at Fair Value		Percentage of Net Assets at Fair Value		Cost		Percentage of Total Portfolio at Cost
	(dollars in thousands)
March 31, 2022:
Business Services	$	123,697	13.2	%	29.4	%	$	124,860	13.3	%
Consumer Products & Retail	90,457		9.7		21.5		88,375		9.4
Healthcare Services	88,131		9.4		21.0		96,946		10.3
Consumer Services	71,730		7.7		17.0		71,203		7.6
I-45 SLF LLC1	57,603		6.2		13.7		76,000		8.1
Distribution	54,798		5.9		13.0		54,035		5.8
Food, Agriculture & Beverage	48,876		5.2		11.6		47,057		5.0
Media & Marketing	43,463		4.6		10.3		33,049		3.5
Financial Services	39,305		4.2		9.3		31,229		3.3
Technology Products & Components	37,047		4.0		8.8		30,440		3.3
Transportation & Logistics	34,038		3.6		8.1		29,513		3.1
Software & IT Services	33,414		3.6		7.9		34,866		3.7
Education	32,072		3.4		7.6		32,119		3.4
Healthcare Products	32,054		3.4		7.6		33,018		3.5
Environmental Services	20,641		2.2		4.9		23,108		2.5
Telecommunications	18,736		2.0		4.5		22,341		2.4
Energy Services (Upstream)	17,910		1.9		4.3		17,500		1.9
Specialty Chemicals	17,749		1.9		4.2		17,640		1.9
Industrial Products	13,891		1.5		3.3		13,901		1.5
Energy Services (Midstream)	13,465		1.4		3.2		13,582		1.5
Industrial Services	11,614		1.2		2.8		11,451		1.2
Commodities & Mining	10,877		1.2		2.6		11,135		1.2
Containers & Packaging	10,671		1.1		2.5		10,723		1.1
Aerospace & Defense	6,800		0.7		1.6		6,672		0.7
Restaurants	5,367		0.6		1.3		4,556		0.5
Paper & Forest Products	2,208		0.2		0.5		2,984		0.3
	$	936,614	100.0	%	222.5	%	$	938,303	100.0	%


	Fair Value		Percentage of Total Portfolio at Fair Value		Percentage of Net Assets at Fair Value		Cost		Percentage of Total Portfolio at Cost
	(dollars in thousands)
December 31, 2022:
Southeast	$	239,539	20.8	%	42.7	%	$	236,922	20.4	%
Northeast	230,643		20.1		41.1		222,894		19.2
West	228,254		19.8		40.6		223,761		19.3
Southwest	222,872		19.4		39.7		218,712		18.8
Midwest	155,675		13.6		27.7		157,333		13.6
I-45 SLF LLC1	47,625		4.1		8.5		76,000		6.6
International	25,438		2.2		4.5		24,090		2.1
	$	1,150,046	100.0	%	204.8	%	$	1,159,712	100.0	%

March 31, 2022:
Northeast	$	225,578	24.1	%	53.6	%	$	221,780	23.6	%
Southwest	206,057		22.0		49.0		204,443		21.8
West	163,924		17.5		38.9		153,292		16.3
Southeast	136,588		14.6		32.5		138,929		14.9
Midwest	132,308		14.1		31.4		129,354		13.8
I-45 SLF LLC1	57,603		6.1		13.7		76,000		8.1
International	14,556		1.6		3.4		14,505		1.5
	$	936,614	100.0	%	222.5	%	$	938,303	100.0	%

1I-45 SLF LLC is a joint venture between CSWC and Main Street Capital Corporation. This entity primarily invests in syndicated senior secured loans to the UMM. The portfolio companies held by I-45 SLF LLC represent a diverse set of geographic regions, which are similar to those in which CSWC invests directly. See Note 13 for further discussion.

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule Investment Portfolio by Level

The following fair value hierarchy tables set forth our investment portfolio by level as of December 31, 2022 and March 31, 2022 (in thousands):


			Fair Value Measurements
			at December 31, 2022 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	$	954,000	$	—	$	—	$	954,000
Second lien loans	35,446		—		—		35,446
Subordinated debt	852		—		—		852
Preferred equity	61,283		—		—		61,283
Common equity & warrants	50,840		—		—		50,840
Investments measured at net asset value1	47,625		—		—		—
Total Investments	$	1,150,046	$	—	$	—	$	1,102,421



			Fair Value Measurements
			at March 31, 2022 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	$	739,872	$	—	$	—	$	739,872
Second lien loans	52,645		—		—		52,645
Subordinated debt	1,317		—		—		1,317
Preferred equity	44,663		—		—		44,663
Common equity & warrants	40,514		—		—		40,514
Investments measured at net asset value1	57,603		—		—		—
Total Investments	$	936,614	$	—	$	—	$	879,011

Schedule of Valuation Techniques and Significant Level 3 Inputs


		Fair Value at		Significant
	Valuation	December 31, 2022		Unobservable		Weighted
Type	Technique	(in thousands)		Inputs	Range	Average

First lien loans	Income Approach	$	865,983	Discount Rate	6.9% - 38.1%	13.2%
				Third Party Broker Quote	5.6 - 98.5	95.5
	Market Approach	88,017		Cost	98.0 - 99.5	98.2
				Exit Value	75.0 - 100.0	95.7
Second lien loans	Income Approach	33,071		Discount Rate	14.2% - 29.0%	21.9%
				Third Party Broker Quote	66.0 - 66.0	66.0

	Market Approach	2,375		Exit Value	45.6 - 45.6	45.6



Subordinated debt	Market Approach	581		Cost	100.0 - 100.0	100.0
	Enterprise Value Waterfall Approach	271		EBITDA Multiple	7.6x - 7.6x	7.6x
				Discount Rate	21.0% - 21.0%	21.0%
Preferred equity	Enterprise Value Waterfall Approach	61,283		EBITDA Multiple	4.7x - 17.1x	10.1x
				Discount Rate	12.6% - 30.1%	18.6%

Common equity & warrants	Enterprise Value Waterfall Approach	48,225		EBITDA Multiple	5.5x - 11.0x	9.3x
				Discount Rate	11.3% - 78.4%	16.8%
	Market Approach	2,615		Cost	100.0 - 100.0	100.0

Total Level 3 Investments		$	1,102,421


		Fair Value at		Significant
	Valuation	March 31, 2022		Unobservable		Weighted
Type	Technique	(in thousands)		Inputs	Range	Average

First lien loans	Income Approach	$	645,034	Discount Rate	7.3% - 30.6%	10.7%
				Third Party Broker Quote	5.5 - 96.5	93.2
	Market Approach	94,838		Cost	80.2 - 99.0	98.1
				Exit Value	100.0 - 102.0	101.8
Second lien loans	Income Approach	49,541		Discount Rate	10.3% - 37.8%	15.4%
				Third Party Broker Quote	97.3 - 97.3	97.3
	Enterprise Value Waterfall Approach	3,104		EBITDA Multiple	8.3x - 8.3x	8.3x
				Discount Rate	22.1% - 22.1%	22.1%
Subordinated debt	Income Approach	650		Discount Rate	27.4% - 27.4%	27.4%
	Market Approach	172		Cost	100.0 - 100.0	100.0
	Enterprise Value Waterfall Approach	495		EBITDA Multiple	8.1x - 8.1x	8.1x
				Discount Rate	20.5% - 20.5%	20.5
Preferred equity	Enterprise Value Waterfall Approach	41,563		EBITDA Multiple	6.9x - 18.8x	10.6x
				Discount Rate	12.5% - 40.8%	17.8%
	Market Approach	3,100		Cost	100.0 - 100.0	100.0
Common equity & warrants	Enterprise Value Waterfall Approach	36,667		EBITDA Multiple	4.2x - 11.4x	8.5x
				Discount Rate	10.1% - 32.2%	18.1%
	Market Approach	1,757		Exit Value	351.4 - 351.4	351.4
	Income Approach	2,090		Third Party Broker Quote	158.7 - 158.7	158.7
Total Level 3 Investments		$	879,011

Summary 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, 2022 and 2021 (in thousands):


	Fair Value March 31, 2022		Realized & Unrealized Gains (Losses)		Purchases of Investments1		Repayments		PIK Interest Capitalized		Divestitures		Conversion/Reclassification of Security		Fair Value December 31, 2022		YTD Unrealized Appreciation (Depreciation) on Investments held at period end
First lien loans	$	739,872	$	(14,263)	$	335,069	$	(96,475)	$	3,512	$	—	$	(13,715)	$	954,000	$	(10,201)
Second lien loans	52,645		(7,512)		2,930		(12,239)		314		(692)		—		35,446		(6,307)
Subordinated debt	1,317		(328)		385		—		65		—		(587)		852		(224)
Preferred equity	44,663		(1,253)		3,571		—		—		—		14,302		61,283		1,840
Common equity & warrants	40,514		8,670		4,320		—		—		(2,664)		—		50,840		9,853
Total Investments	$	879,011	$	(14,686)	$	346,275	$	(108,714)	$	3,891	$	(3,356)	$	—	$	1,102,421	$	(5,039)

	Fair Value March 31, 2021		Realized & Unrealized Gains (Losses)		Purchases of Investments1		Repayments		PIK Interest Capitalized		Divestitures		Conversion/Reclassification of Security		Fair Value December 31, 2021		YTD Unrealized Appreciation (Depreciation) on Investments held at period end
First lien loans	$	524,161	$	(998)	$	378,164	$	(219,454)	$	1,994	$	—	$	(4,683)	$	679,184	$	(2,515)
Second lien loans	36,919		(1,791)		18,841		(7,152)		1,079		(53)		5,208		53,051		(2,165)
Subordinated debt	11,534		165		270		—		477		—		—		12,446		165
Preferred equity	22,608		7,796		7,511		—		—		—		(525)		37,390		7,271
Common equity & warrants	36,052		8,677		4,257		—		—		(11,881)		—		37,105		4,042
Total Investments	$	631,274	$	13,849	$	409,043	$	(226,606)	$	3,550	$	(11,934)	$	—	$	819,176	$	6,798

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

BORROWINGS (Tables)

9 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Schedule of Borrowings Outstanding

The Company had the following borrowings outstanding as of December 31, 2022 and March 31, 2022 (amounts in thousands):


December 31, 2022	Outstanding Balance		Unamortized Debt Issuance Costs and Debt Discount/Premium		Recorded Value
SBA Debentures	$	104,000	$	(3,418)	$	100,582
Credit Facility	225,000		—		225,000
January 2026 Notes	140,000		(1,033)		138,967
October 2026 Notes	150,000		(2,922)		147,078
	$	619,000	$	(7,373)	$	611,627

March 31, 2022
SBA Debentures	$	40,000	$	(1,648)	$	38,352
Credit Facility	205,000		—		205,000
January 2026 Notes	140,000		(1,286)		138,714
October 2026 Notes	150,000		(3,478)		146,522
	$	535,000	$	(6,412)	$	528,588

Schedule of Issued and Outstanding SBA Debentures

As of December 31, 2022, the Company's issued and outstanding SBA Debentures mature as follows (amounts in thousands):


Pooling Date (1)	Maturity Date	Fixed Interest Rate	December 31, 2022
9/22/2021	9/1/2031	1.575%	$	15,000
3/23/2022	3/1/2032	3.209%	25,000
9/21/2022	9/1/2032	4.533%	40,000
(2)	(2)	(2)	24,000
			$	104,000

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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Book and Tax Basis Differences Relating to Dividends and Distributions

INCOME TAXES (Tables)

9 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]


	Nine Months Ended December 31,
	2022		2021
Additional capital	$	(5,126)	$	(6,255)
Total distributable earnings	5,126		6,255

Schedule of Distributions

The tax character of distributions paid for the years ended December 31, 2022 and 2021 was as follows (amounts in thousands):


	Twelve Months Ended December 31,
	2022		2021
Ordinary income	$	60,960	$	56,633
Distributions of long term capital gains	—		—
Distributions on tax basis	$	60,960	$	56,633

Schedule of Net Assets Resulting from Operations to Estimated RIC Taxable Income

The following reconciles net increase in net assets resulting from operations to estimated RIC taxable income for the nine months ended December 31, 2022 and 2021:


	Nine Months Ended December 31,
Reconciliation of RIC Distributable Income1	2022		2021
Net increase in net assets from operations	$	14,917	$	23,146
Net unrealized depreciation (appreciation) on investments	13,989		(4,306)
Income/gain (expense/loss) recognized for tax on pass-through entities	10		1,558
(Gain) loss recognized on dispositions	(1,473)		329
Capital loss carryover2	14,454		308
Net operating income - wholly-owned subsidiary	1,071		(9,186)
Dividend income from wholly-owned subsidiary	1,068		—
Non-deductible tax expense	466		191
Loss on extinguishment of debt	—		12,950
Non-deductible compensation	2,443		2,688
Compensation related book/tax differences	(1,471)		2,542
Other book/tax differences	1,839		3,518
Estimated distributable income before deductions for distributions	$	47,313	$	33,738

2At December 31, 2022, the Company had long-term capital loss carryforwards of $31.9 million to offset future capital gains. These capital loss carryforwards are not subject to expiration.

Schedule of Deferred Tax Assets and Liabilities

The following table sets forth the significant components of the deferred tax assets and liabilities as of December 31, 2022 and March 31, 2022 (amounts in thousands):


	December 31, 2022		March 31, 2022
Deferred tax asset:
Net operating loss carryforwards	$	—	$	—
Interest	220		185
Total deferred tax asset	220		185
Deferred tax liabilities:
Net unrealized appreciation on investments	(10,911)		(4,899)
Net basis differences in portfolio investments	(736)		(1,033)
Total deferred tax liabilities	(11,647)		(5,932)
Total net deferred tax (liabilities) assets	$	(11,427)	$	(5,747)

Schedule of Significant Components of Income Tax Provision

The following table sets forth the significant components of income tax provision as of December 31, 2022 and 2021 (amounts in thousands):


	Nine Months Ended December 31,
Components of Income Tax Provision	2022		2021
Excise tax	$	468	$	191
Tax (benefit) provision related to Taxable Subsidiary	(488)		457
Total income tax (benefit) provision	$	(20)	$	648

SHAREHOLDERS' EQUITY (Tables)

9 Months Ended

Dec. 31, 2022

Equity [Abstract]

Summary of Shares Sold

The following table summarizes certain information relating to shares sold under the Equity ATM Program:


	Three Months Ended December 31,
	2022		2021
Number of shares sold	3,264,878		616,156
Gross proceeds received (in thousands)	$	58,324	$	16,000
Net proceeds received (in thousands)1	$	57,449	$	15,760
Weighted average price per share	$	17.86	$	25.97

	Nine Months Ended December 31,
	2022		2021
Number of shares sold	6,909,446		2,834,734
Gross proceeds received (in thousands)	$	131,990	$	74,463
Net proceeds received (in thousands)1	$	130,010	$	73,347
Weighted average price per share	$	19.10	$	26.27

Summary of Share Repurchases

The following table summarizes certain information relating to shares repurchased in connection with the vesting of restricted stock awards:


	Three Months Ended December 31,
	2022		2021
Number of shares repurchased	19,917		31,492
Aggregate cost of shares repurchased (in thousands)	$	380	$	862
Weighted average price per share	$	19.09	$	27.38

	Nine Months Ended December 31,
	2022		2021
Number of shares repurchased	49,590		52,124
Aggregate cost of shares repurchased (in thousands)	$	1,021	$	1,408
Weighted average price per share	$	20.59	$	27.01

STOCK BASED COMPENSATION PLANS (Tables)

9 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Restricted Stock Outstanding

The following table summarizes the restricted stock outstanding under the 2010 Plan and the 2021 Employee Plan as of December 31, 2022:


		Weighted Average		Weighted Average
		Fair Value Per		Remaining Vesting
Restricted Stock Awards	Number of Shares	Share at grant date		Term (in Years)
Unvested at March 31, 2022	395,993	$	21.48	2.4
Granted	199,042	21.25		3.4
Vested	(148,774)	20.49		—
Forfeited	(4,925)	23.52		—
Unvested at December 31, 2022	441,336	$	21.48	2.6

The following table summarizes the restricted stock outstanding under the Non-Employee Director Plan as of December 31, 2022:


		Weighted Average		Weighted Average
		Fair Value Per		Remaining Vesting
Restricted Stock Awards	Number of Shares	Share at grant date		Term (in Years)
Unvested at March 31, 2022	—	$	—	0
Granted	12,105	20.66		0.6
Vested	—	—		—
Forfeited	—	—		—
Unvested at December 31, 2022	12,105	$	20.66	0.6

COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Summary of Unused Commitments to Extend Credit

The balances of unused commitments to extend financing as of December 31, 2022 and March 31, 2022 were as follows (amounts in thousands):


	December 31,		March 31,
Portfolio Company	2022		2022
Revolving Loans

Acacia BuyerCo V LLC	$	2,000	$	—
Acceleration, LLC	5,000		—
Air Conditioning Specialist, Inc.	1,000		1,000
American Teleconferencing Services, Ltd. (DBA Premiere Global Services, Inc.)	148		117
ArborWorks, LLC	1,000		3,000
ATS Operating, LLC	2,500		1,500
Cadmium, LLC	—		308
Catbird NYC, LLC	4,000		4,000
Central Medical Supply LLC	1,200		1,200
Dynamic Communities, LLC	—		500
Exact Borrower, LLC	2,500		—
Fast Sandwich, LLC	—		3,100
FM Sylvan, Inc.	10,000		—
Gains Intermediate, LLC	2,500		—
GrammaTech, Inc.	2,500		2,500
GS Operating, LLC	—		1,540
Gulf Pacific Acquisition, LLC	757		—
ISI Enterprises, LLC	1,200		1,200
ITA Holdings Group, LLC	—		1,250
Klein Hersh, LLC	—		938
Lash OpCo, LLC	247		481
Lighting Retrofit International, LLC (DBA Envocore)	2,083		2,083
Lightning Intermediate II, LLC	1,852		—
Mako Steel LP	283		943
Microbe Formulas LLC	1,627		—
Muenster Milling Company, LLC	7,000		5,000
NeuroPsychiatric Hospitals, LLC	600		600
New Skinny Mixes, LLC	4,000		—
NinjaTrader, Inc.	2,500		2,500
NWN Parent Holdings, LLC	90		1,380
Opco Borrower, LLC (DBA Giving Home Health Care)	667		—
Outerbox, LLC	2,000		—


	December 31,	March 31,
Portfolio Company	2022	2022
Pipeline Technique Ltd.	3,333	—
Roof OpCo, LLC	1,833	3,056
Roseland Management, LLC	1,425	1,425
RTIC Subsidiary Holdings LLC	822	—
Shearwater Research, Inc.	2,446	2,446
SIB Holdings, LLC	205	655
South Coast Terminals LLC	1,935	1,935
Spotlight AR, LLC	2,000	2,000
Student Resource Center, LLC	—	1,333
Systec Corporation (DBA Inspire Automation)	1,500	1,150
Versicare Management LLC	2,500	—
Wall Street Prep, Inc.	1,000	1,000
Well-Foam, Inc.	4,500	4,500
Winter Services Operations, LLC	4,444	2,000
Zenfolio Inc.	—	1,000
Total Revolving Loans	87,197	57,640
Delayed Draw Term Loans
Acacia BuyerCo V LLC	10,000	—
Acceleration, LLC	5,000	—
Central Medical Supply LLC	1,400	1,400
CityVet Inc.	—	7,000
Exact Borrower, LLC	2,500	—
Flip Electronics, LLC	—	2,818
FoodPharma Subsidiary Holdings, LLC	—	5,470
Gains Intermediate, LLC	17,000	—
GS Operating, LLC	—	3,205
Gulf Pacific Acquisition, LLC	1,515	—
Infolinks Media Buyco, LLC	2,250	2,250
KMS, LLC	2,286	4,571
Lash OpCo, LLC	—	2,846
Muenster Milling Company, LLC	—	6,000
NeuroPsychiatric Hospitals, LLC	—	10,000
New Skinny Mixes, LLC	3,000	—
NinjaTrader, Inc.	4,692	4,692
Roof OpCo, LLC	—	4,644
Shearwater Research, Inc.	—	3,262
SIB Holdings, LLC	—	1,871
STATinMED, LLC	119	—
Systec Corporation (DBA Inspire Automation)	3,000	3,000
US CourtScript Holdings, Inc.	5,000	—
Versicare Management LLC	5,000	—
Winter Services Operations, LLC	4,444	4,444
Zips Car Wash, LLC - B	—	3,801


	December 31,		March 31,
Portfolio Company	2022		2022
Total Delayed Draw Term Loans	67,206		71,274
Other
Catbird NYC, LLC	125		125
Infolinks Media Buyco, LLC	412		412
I-45 SLF LLC	4,800		4,800
Total Other	5,337		5,337
Total unused commitments to extend financing	$	159,740	$	134,251

Schedule of Future Minimum Payments

The following table shows future minimum payments under the Company's operating leases as of December 31, 2022 (in thousands):


Year ending March 31,	Rent Commitment
2023	$	92
2024	406
2025	416
2026	426
2027	436
Thereafter	2,578
Total	$	4,354

SUMMARY OF PER SHARE INFORMATION (Tables)

9 Months Ended

Dec. 31, 2022

Investment Company [Abstract]

Summary of Per Share Data

The following presents a summary of per share data for the three and nine months ended December 31, 2022 and 2021 (share amounts presented in thousands).


	Three Months Ended						Nine Months Ended
	December 31,						December 31,
Per Share Data:	2022			2021			2022			2021
Investment income1	$	1.04		$	0.95		$	2.90		$	2.73
Operating expenses1	(0.44)			(0.44)			(1.26)			(1.33)
Income taxes1	0.02			—			—			(0.03)
Net investment income1	0.62			0.51			1.64			1.37
Net realized (loss) gain, net of tax1	(0.36)			0.12			(0.62)			0.23
Net unrealized appreciation (depreciation) on investments, net of tax1	(0.17)			(0.09)			(0.49)			0.19
Realized loss on extinguishment of debt1	—			—			—			(0.76)
Total increase (decrease) from investment operations	0.09			0.54			0.53			1.03
Accretive effect of share issuances and repurchases	0.17			0.24			0.43			1.17
Dividends to shareholders	(0.57)			(0.97)			(1.70)			(2.04)
Issuance of restricted stock1,2	—			—			(0.14)			(0.10)
Common stock withheld for payroll taxes upon vesting of restricted stock	—			(0.01)			(0.01)			(0.03)
Share based compensation expense	0.03			0.04			0.10			0.12
Other3	—			(0.01)			0.18			0.03
(Decrease) increase in net asset value	(0.28)			(0.17)			(0.61)			0.18
Net asset value
Beginning of period	16.53			16.36			16.86			16.01
End of period	$	16.25		$	16.19		$	16.25		$	16.19

Ratios and Supplemental Data
Ratio of operating expenses to average net assets4	2.69		%	2.71		%	7.56		%	8.09		%
Ratio of net investment income to average net assets4	3.71		%	3.08		%	9.78		%	8.31		%
Portfolio turnover	2.19		%	19.44		%	11.04		%	30.11		%
Total investment return4,5	4.31		%	4.25		%	(20.95)		%	23.51		%
Total return based on change in NAV4,6	1.75		%	4.89		%	6.47		%	13.87		%

Per share market value at the end of the period	$	17.10		$	25.28		$	17.10		$	25.28
Weighted-average basic and diluted shares outstanding	31,381			23,433			28,304			22,394
Common shares outstanding at end of period	34,559			23,926			34,559			23,926

1Based on weighted average of common shares outstanding for the period.

2Reflects impact of the different share amounts as a result of issuance or forfeiture of restricted stock during the period.

4Not annualized.

ORGANIZATION AND BASIS OF PRESENTATION (Details)	9 Months Ended
ORGANIZATION AND BASIS OF PRESENTATION (Details)	Dec. 31, 2022 USD ($)
Schedule of Investments [Line Items]
Qualifying assets	86.50%
Nonqualified assets	11.20%
LMM \| Minimum
Schedule of Investments [Line Items]
Target company, annual EBITDA	$ 3,000,000
Target investment	5,000,000
LMM \| Maximum
Schedule of Investments [Line Items]
Target company, annual EBITDA	20,000,000
Target investment	35,000,000
UMM \| Minimum
Schedule of Investments [Line Items]
Target company, annual EBITDA	20,000,000
Target investment	5,000,000
UMM \| Maximum
Schedule of Investments [Line Items]
Target investment	$ 20,000,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)		3 Months Ended		9 Months Ended		12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Jul. 18, 2011	Dec. 31, 2022 USD ($) investment	Dec. 31, 2021 USD ($) investment	Dec. 31, 2022 USD ($) investment	Dec. 31, 2021 USD ($) investment	Mar. 31, 2022 USD ($)
Accounting Policies [Abstract]
FDIC uninsured amount		$ 20,400,000		$ 20,400,000		$ 10,200,000
Concentration Risk [Line Items]
Non-cash interest income percent		3.20%	3.40%	3.50%	3.60%
Number of PIK investments \| investment		3	2	3	2
Non-cash PIK interest income percent		4.60%	3.60%	4.40%	4.40%
Remaining lease term		9 years 9 months 18 days		9 years 9 months 18 days
Interest or penalties expense		$ 0	$ 0	$ 0	$ 0
Right to grant period	10 years
Percentage of Total Portfolio at Fair Value \| Credit Concentration Risk \| Investment Owned, Non-accrual Status
Concentration Risk [Line Items]
Percentage of Total Portfolio				0.30%		1.50%
Percentage of Total Portfolio at Cost \| Credit Concentration Risk \| Investment Owned, Non-accrual Status
Concentration Risk [Line Items]
Percentage of Total Portfolio				1.40%		2.60%

INVESTMENTS - Investment Portfolio, at Fair Value and Cost (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Dec. 31, 2022	Mar. 31, 2022
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 4,012	$ 4,239
Percent of net assets	27.70%	31.40%
Cost	$ 4,172	$ 4,265
Percentage of Total Portfolio at Fair Value \| Investment Type
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	100.00%	100.00%
Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	100.00%	100.00%
Percentage of Total Portfolio at Fair Value \| Geographic
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	100.00%	100.00%
Percentage of Total Portfolio at Cost \| Investment Type
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	100.00%	100.00%
Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	100.00%	100.00%
Percentage of Total Portfolio at Cost \| Geographic
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	100.00%	100.00%
First lien loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 954,000	$ 739,872
Percent of net assets	169.90%	175.80%
Cost	$ 968,597	$ 745,290
First lien loans \| Percentage of Total Portfolio at Fair Value \| Investment Type
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	83.00%	79.00%
First lien loans \| Percentage of Total Portfolio at Cost \| Investment Type
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	83.50%	79.40%
Second lien loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 35,446	$ 52,645
Percent of net assets	6.30%	12.50%
Cost	$ 44,050	$ 55,976
Second lien loans \| Percentage of Total Portfolio at Fair Value \| Investment Type
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	3.10%	5.60%
Second lien loans \| Percentage of Total Portfolio at Cost \| Investment Type
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	3.80%	6.00%
Subordinated debt
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 852	$ 1,317
Percent of net assets	0.10%	0.30%
Cost	$ 754	$ 994
Subordinated debt \| Percentage of Total Portfolio at Fair Value \| Investment Type
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	0.10%	0.10%
Subordinated debt \| Percentage of Total Portfolio at Cost \| Investment Type
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	0.10%	0.10%
Preferred equity
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 61,283	$ 44,663
Percent of net assets	10.90%	10.60%
Cost	$ 39,416	$ 25,544
Preferred equity \| Percentage of Total Portfolio at Fair Value \| Investment Type
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	5.30%	4.80%
Preferred equity \| Percentage of Total Portfolio at Cost \| Investment Type
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	3.40%	2.70%
Common equity & warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 50,840	$ 40,514
Percent of net assets	9.10%	9.60%
Cost	$ 30,895	$ 34,499
Common equity & warrants \| Percentage of Total Portfolio at Fair Value \| Investment Type
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	4.40%	4.30%
Common equity & warrants \| Percentage of Total Portfolio at Cost \| Investment Type
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	2.70%	3.70%
I-45 SLF LLC
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 47,625	$ 57,603
Percent of net assets	8.50%	13.70%
Cost	$ 76,000	$ 76,000
I-45 SLF LLC \| Percentage of Total Portfolio at Fair Value \| Investment Type
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	4.10%	6.20%
I-45 SLF LLC \| Percentage of Total Portfolio at Cost \| Investment Type
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	6.50%	8.10%
I-45 SLF LLC
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 47,625	$ 57,603
Percent of net assets	8.50%	13.70%
Cost	$ 76,000	$ 76,000
I-45 SLF LLC \| Percentage of Total Portfolio at Fair Value \| Geographic
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	4.10%	6.10%
I-45 SLF LLC \| Percentage of Total Portfolio at Cost \| Geographic
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	6.60%	8.10%
International
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 25,438	$ 14,556
Percent of net assets	4.50%	3.40%
Cost	$ 24,090	$ 14,505
International \| Percentage of Total Portfolio at Fair Value \| Geographic
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	2.20%	1.60%
International \| Percentage of Total Portfolio at Cost \| Geographic
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	2.10%	1.50%
Media & Marketing
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 142,382	$ 43,463
Percent of net assets	25.40%	10.30%
Cost	$ 132,117	$ 33,049
Media & Marketing \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	12.40%	4.60%
Media & Marketing \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	11.40%	3.50%
Business Services
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 127,741	$ 123,697
Percent of net assets	22.70%	29.40%
Cost	$ 128,237	$ 124,860
Business Services \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	11.10%	13.20%
Business Services \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	11.10%	13.30%
Healthcare Services
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 108,710	$ 88,131
Percent of net assets	19.40%	21.00%
Cost	$ 123,408	$ 96,946
Healthcare Services \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	9.50%	9.40%
Healthcare Services \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	10.60%	10.30%
Consumer Services
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 90,019	$ 71,730
Percent of net assets	15.90%	17.00%
Cost	$ 89,283	$ 71,203
Consumer Services \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	7.80%	7.70%
Consumer Services \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	7.70%	7.60%
Consumer Products & Retail
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 86,771	$ 90,457
Percent of net assets	15.40%	21.50%
Cost	$ 86,298	$ 88,375
Consumer Products & Retail \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	7.50%	9.70%
Consumer Products & Retail \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	7.40%	9.40%
Food, Agriculture & Beverage
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 72,803	$ 48,876
Percent of net assets	13.00%	11.60%
Cost	$ 74,059	$ 47,057
Food, Agriculture & Beverage \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	6.30%	5.20%
Food, Agriculture & Beverage \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	6.40%	5.00%
Healthcare Products
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 67,002	$ 32,054
Percent of net assets	11.90%	7.60%
Cost	$ 67,777	$ 33,018
Healthcare Products \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	5.80%	3.40%
Healthcare Products \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	5.80%	3.50%
Technology Products & Components
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 64,199	$ 37,047
Percent of net assets	11.40%	8.80%
Cost	$ 46,947	$ 30,440
Technology Products & Components \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	5.60%	4.00%
Technology Products & Components \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	4.10%	3.30%
I-45 SLF LLC
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 47,625	$ 57,603
Percent of net assets	8.50%	13.70%
Cost	$ 76,000	$ 76,000
I-45 SLF LLC \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	4.10%	6.20%
I-45 SLF LLC \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	6.60%	8.10%
Financial Services
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 40,418	$ 39,305
Percent of net assets	7.20%	9.30%
Cost	$ 31,019	$ 31,229
Financial Services \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	3.50%	4.20%
Financial Services \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	2.70%	3.30%
Software & IT Services
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 38,572	$ 33,414
Percent of net assets	6.90%	7.90%
Cost	$ 39,844	$ 34,866
Software & IT Services \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	3.40%	3.60%
Software & IT Services \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	3.40%	3.70%
Distribution
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 34,100	$ 54,798
Percent of net assets	6.10%	13.00%
Cost	$ 35,904	$ 54,035
Distribution \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	3.00%	5.90%
Distribution \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	3.10%	5.80%
Education
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 26,426	$ 32,072
Percent of net assets	4.70%	7.60%
Cost	$ 26,046	$ 32,119
Education \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	2.30%	3.40%
Education \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	2.20%	3.40%
Industrial Services
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 26,233	$ 11,614
Percent of net assets	4.70%	2.80%
Cost	$ 25,900	$ 11,451
Industrial Services \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	2.30%	1.20%
Industrial Services \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	2.20%	1.20%
Industrial Products
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 22,387	$ 13,891
Percent of net assets	4.00%	3.30%
Cost	$ 18,839	$ 13,901
Industrial Products \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	2.00%	1.50%
Industrial Products \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	1.60%	1.50%
Energy Services (Midstream)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 22,355	$ 13,465
Percent of net assets	4.00%	3.20%
Cost	$ 23,014	$ 13,582
Energy Services (Midstream) \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	1.90%	1.40%
Energy Services (Midstream) \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	2.00%	1.50%
Environmental Services
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 19,592	$ 20,641
Percent of net assets	3.50%	4.90%
Cost	$ 24,920	$ 23,108
Environmental Services \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	1.70%	2.20%
Environmental Services \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	2.20%	2.50%
Telecommunications
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 17,776	$ 18,736
Percent of net assets	3.20%	4.50%
Cost	$ 21,829	$ 22,341
Telecommunications \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	1.50%	2.00%
Telecommunications \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	1.90%	2.40%
Energy Services (Upstream)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 17,775	$ 17,910
Percent of net assets	3.20%	4.30%
Cost	$ 17,426	$ 17,500
Energy Services (Upstream) \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	1.50%	1.90%
Energy Services (Upstream) \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	1.50%	1.90%
Aerospace & Defense
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 6,800	$ 6,800
Percent of net assets	1.20%	1.60%
Cost	$ 6,691	$ 6,672
Aerospace & Defense \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	0.60%	0.70%
Aerospace & Defense \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio	0.60%	0.70%
Commodities & Mining
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value		$ 10,877
Percent of net assets		2.60%
Cost		$ 11,135
Commodities & Mining \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio		1.20%
Commodities & Mining \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio		1.20%
Restaurants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value		$ 5,367
Percent of net assets		1.30%
Cost		$ 4,556
Restaurants \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio		0.60%
Restaurants \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio		0.50%
Paper & Forest Products
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value		$ 2,208
Percent of net assets		0.50%
Cost		$ 2,984
Paper & Forest Products \| Percentage of Total Portfolio at Fair Value \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio		0.20%
Paper & Forest Products \| Percentage of Total Portfolio at Cost \| Industry
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of Total Portfolio		0.30%
First lien last out loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 51,000	$ 38,600
Split lien term loans included in first lien loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	37,200	36,400
Split lien term loans included in second lien loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	20,600	33,900
Unsecured convertible Note
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments at fair value	$ 500	$ 700

FAIR VALUE MEASUREMENTS - Narrative (Details)	Dec. 31, 2022	Mar. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percent of investment assets	4.10%	6.20%
Privately held debt and equity instruments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percent of investment assets	100.00%	100.00%

FAIR VALUE MEASUREMENTS - Schedule Investment Portfolio by Level (Details) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2022	Mar. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	$ 4,012	$ 4,239
Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	1,102,421
Total Investments		879,011
Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	1,150,046	936,614
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	0	0
Recurring \| Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	0	0
Recurring \| Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	1,102,421	879,011
Recurring \| Net Asset Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments measured at net asset value	$ 47,625	57,603
Prior notice period to sell or transfer membership interest	60 days
Recurring \| First lien loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	$ 954,000	739,872
Recurring \| First lien loans \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	0	0
Recurring \| First lien loans \| Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	0	0
Recurring \| First lien loans \| Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	954,000	739,872
Recurring \| Second lien loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	35,446	52,645
Recurring \| Second lien loans \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	0	0
Recurring \| Second lien loans \| Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	0	0
Recurring \| Second lien loans \| Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	35,446	52,645
Recurring \| Subordinated debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	852	1,317
Recurring \| Subordinated debt \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	0	0
Recurring \| Subordinated debt \| Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	0	0
Recurring \| Subordinated debt \| Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	852	1,317
Recurring \| Preferred equity
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	61,283	44,663
Recurring \| Preferred equity \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	0	0
Recurring \| Preferred equity \| Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	0	0
Recurring \| Preferred equity \| Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	61,283	44,663
Recurring \| Common equity & warrants
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	50,840	40,514
Recurring \| Common equity & warrants \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	0	0
Recurring \| Common equity & warrants \| Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	0	0
Recurring \| Common equity & warrants \| Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Investments	$ 50,840	$ 40,514

FAIR VALUE MEASUREMENTS - Summary of Changes in Fair Value of Investments Measured Using Level 3 Inputs (Details) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	$ 879,011	$ 631,274
Realized & Unrealized Gains (Losses)	(14,686)	13,849
Purchases of Investments	346,275	409,043
Repayments	(108,714)	(226,606)
PIK Interest Capitalized	3,891	3,550
Divestitures	(3,356)	(11,934)
Conversion/Reclassification of Security	0	0
Fair value. ending balance	1,102,421	819,176
YTD Unrealized Appreciation (Depreciation) on Investments held at period end	(5,039)	6,798
First lien loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	739,872	524,161
Realized & Unrealized Gains (Losses)	(14,263)	(998)
Purchases of Investments	335,069	378,164
Repayments	(96,475)	(219,454)
PIK Interest Capitalized	3,512	1,994
Divestitures	0	0
Conversion/Reclassification of Security	(13,715)	(4,683)
Fair value. ending balance	954,000	679,184
YTD Unrealized Appreciation (Depreciation) on Investments held at period end	(10,201)	(2,515)
Second lien loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	52,645	36,919
Realized & Unrealized Gains (Losses)	(7,512)	(1,791)
Purchases of Investments	2,930	18,841
Repayments	(12,239)	(7,152)
PIK Interest Capitalized	314	1,079
Divestitures	(692)	(53)
Conversion/Reclassification of Security	0	5,208
Fair value. ending balance	35,446	53,051
YTD Unrealized Appreciation (Depreciation) on Investments held at period end	(6,307)	(2,165)
Subordinated debt
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	1,317	11,534
Realized & Unrealized Gains (Losses)	(328)	165
Purchases of Investments	385	270
Repayments	0	0
PIK Interest Capitalized	65	477
Divestitures	0	0
Conversion/Reclassification of Security	(587)	0
Fair value. ending balance	852	12,446
YTD Unrealized Appreciation (Depreciation) on Investments held at period end	(224)	165
Preferred equity
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	44,663	22,608
Realized & Unrealized Gains (Losses)	(1,253)	7,796
Purchases of Investments	3,571	7,511
Repayments	0	0
PIK Interest Capitalized	0	0
Divestitures	0	0
Conversion/Reclassification of Security	14,302	(525)
Fair value. ending balance	61,283	37,390
YTD Unrealized Appreciation (Depreciation) on Investments held at period end	1,840	7,271
Common equity & warrants
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	40,514	36,052
Realized & Unrealized Gains (Losses)	8,670	8,677
Purchases of Investments	4,320	4,257
Repayments	0	0
PIK Interest Capitalized	0	0
Divestitures	(2,664)	(11,881)
Conversion/Reclassification of Security	0	0
Fair value. ending balance	50,840	37,105
YTD Unrealized Appreciation (Depreciation) on Investments held at period end	$ 9,853	$ 4,042

BORROWINGS - Narrative (Details)						1 Months Ended	3 Months Ended				4 Months Ended	6 Months Ended	9 Months Ended
BORROWINGS - Narrative (Details)	May 11, 2022 USD ($)	Sep. 24, 2021 USD ($)	Aug. 09, 2021 USD ($) lender	Aug. 08, 2021 USD ($) lender	Apr. 20, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	Sep. 24, 2021 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Nov. 22, 2022 USD ($)	Nov. 16, 2022 USD ($) lender	May 10, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jan. 28, 2022 USD ($)	Nov. 30, 2021 USD ($)	Aug. 31, 2021 USD ($)	May 25, 2021 USD ($)	Feb. 28, 2021 USD ($)	Aug. 31, 2020 USD ($)	Oct. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Apr. 25, 2019
Debt Instrument [Line Items]
Asset coverage ratio																											166.00%
Recorded Value							$ 611,627,000						$ 611,627,000					$ 528,588,000
Realized loss on extinguishment of debt							0	$ 0	$ 0	$ (17,087,000)			0	$ (17,087,000)
Outstanding Balance							619,000,000						619,000,000					535,000,000
January 2026 Notes
Debt Instrument [Line Items]
Aggregate principal amount							140,000,000						140,000,000					140,000,000
October 2026 Notes
Debt Instrument [Line Items]
Aggregate principal amount							150,000,000						150,000,000					150,000,000
SBA Debentures
Debt Instrument [Line Items]
Aggregate principal amount							104,000,000						104,000,000					40,000,000
Notes \| January 2026 Notes
Debt Instrument [Line Items]
Recorded Value							138,967,000						138,967,000					138,714,000
Interest expense							1,700,000		1,600,000				5,000,000	5,000,000
Aggregate principal amount						$ 75,000,000																	$ 65,000,000
Fixed Interest Rate						4.50%
Average borrowings							$ 140,000,000		140,000,000				$ 140,000,000	140,000,000
Weighted average interest rate							4.46%						4.46%
Issuance price percent received																							102.11%
Yield-to-maturity																							4.00%
Redemption price, percentage						100.00%
Outstanding Balance							$ 140,000,000						$ 140,000,000					140,000,000
Notes \| January 2026 Notes \| Significant Unobservable Inputs (Level 3)
Debt Instrument [Line Items]
Fair value							121,900,000						121,900,000
Notes \| October 2026 Notes
Debt Instrument [Line Items]
Recorded Value							147,078,000						147,078,000					146,522,000
Interest expense							1,400,000		1,300,000				4,300,000	1,700,000
Aggregate principal amount																				$ 50,000,000	$ 100,000,000
Fixed Interest Rate																				3.375%	3.375%
Average borrowings							$ 150,000,000		128,800,000		$ 120,900,000		$ 150,000,000
Issuance price percent received																				99.993%	99.418%
Yield-to-maturity							3.50%						3.50%							3.375%	3.50%
Redemption price, percentage						100.00%
Outstanding Balance							$ 150,000,000						$ 150,000,000					150,000,000
Notes \| October 2026 Notes \| Significant Unobservable Inputs (Level 3)
Debt Instrument [Line Items]
Fair value							130,000,000						130,000,000
Notes \| October 2024 Notes
Debt Instrument [Line Items]
Interest expense									$ 0					$ 3,600,000
Aggregate principal amount																								$ 50,000,000	$ 10,000,000	$ 65,000,000
Fixed Interest Rate																										5.375%
Repurchased face amount		$ 125,000,000										$ 125,000,000
Percentage of principal amount redeemed		100.00%
Unamortized debt issuance costs										1,800,000
Realized loss on extinguishment of debt										$ 15,200,000
Average borrowings												$ 125,000,000
Weighted average interest rate									5.375%		5.375%			5.375%
Unsecured Debt \| SBA Debentures
Debt Instrument [Line Items]
Recorded Value							100,582,000						100,582,000					38,352,000
Interest expense							$ 900,000		$ 100,000				$ 1,900,000	$ 200,000
Weighted-average interest rate							3.70%		1.43%				2.98%	1.24%
Average borrowings							$ 83,900,000		$ 21,000,000				$ 54,100,000	$ 10,100,000
Outstanding Balance							104,000,000						104,000,000					$ 40,000,000
Unsecured Debt \| SBA Debentures \| SBIC I
Debt Instrument [Line Items]
Debt instrument term					10 years
Regulatory maximum borrowing capacity					$ 175,000,000
Regulatory capital					$ 87,500,000		65,000,000						65,000,000
Leverage commitment amount							130,000,000						130,000,000		$ 50,000,000				$ 40,000,000			$ 40,000,000
Available leverage commitment							65,000,000						65,000,000
Unused commitments							26,000,000						26,000,000
Unsecured Debt \| SBA Debentures \| Significant Unobservable Inputs (Level 3)
Debt Instrument [Line Items]
Fair value							97,400,000						97,400,000
Credit Facility \| Line of Credit
Debt Instrument [Line Items]
LIBOR floor			0.00%	0.00%
Maximum borrowing capacity	$ 380,000,000		$ 335,000,000	$ 340,000,000												$ 400,000,000	$ 335,000,000
Number of lenders \| lender			10	11												11
Covenants increase the minimum obligors			$ 200,000,000	$ 180,000,000
Accordion feature, higher borrowing capacity option	$ 400,000,000
Accordion feature increase limit																$ 20,000,000
Minimum senior coverage ratio	2
Maximum asset coverage ratio	1.50
Interest coverage ratio	2.25
Outstanding advances exceed percentage	90.00%
Minimum liquidity	0.10
Recorded Value							225,000,000						225,000,000
Amortization of deferred loan costs							$ 3,900,000						$ 8,800,000
Interest expense									$ 1,600,000					$ 4,500,000
Weighted-average interest rate							6.02%		2.37%				4.63%	2.52%
Average outstanding amount							$ 228,000,000		$ 200,200,000				$ 208,600,000	$ 165,800,000
Outstanding Balance							$ 225,000,000						$ 225,000,000
Credit Facility \| Line of Credit \| Minimum
Debt Instrument [Line Items]
Commitment fee percentage	0.50%
Credit Facility \| Line of Credit \| Maximum
Debt Instrument [Line Items]
Commitment fee percentage	1.00%
Credit Facility \| Line of Credit \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate			2.15%	2.50%

BORROWINGS - Schedule of Borrowings Outstanding (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Mar. 31, 2022
Debt Instrument [Line Items]
Outstanding Balance	$ 619,000	$ 535,000
Unamortized Debt Issuance Costs and Debt Discount/Premium	(7,373)	(6,412)
Recorded Value	611,627	528,588
Line of Credit \| Credit Facility
Debt Instrument [Line Items]
Outstanding Balance	225,000
Unamortized Debt Issuance Costs and Debt Discount/Premium	0
Recorded Value	225,000
SBA Debentures \| Unsecured Debt
Debt Instrument [Line Items]
Outstanding Balance	104,000	40,000
Unamortized Debt Issuance Costs and Debt Discount/Premium	(3,418)	(1,648)
Recorded Value	100,582	38,352
Credit Facility \| Line of Credit
Debt Instrument [Line Items]
Outstanding Balance		205,000
Unamortized Debt Issuance Costs and Debt Discount/Premium		0
Recorded Value		205,000
January 2026 Notes \| Notes
Debt Instrument [Line Items]
Outstanding Balance	140,000	140,000
Unamortized Debt Issuance Costs and Debt Discount/Premium	(1,033)	(1,286)
Recorded Value	138,967	138,714
October 2026 Notes \| Notes
Debt Instrument [Line Items]
Outstanding Balance	150,000	150,000
Unamortized Debt Issuance Costs and Debt Discount/Premium	(2,922)	(3,478)
Recorded Value	$ 147,078	$ 146,522

BORROWINGS - Schedule of Issued and Outstanding SBA Debentures (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2022 USD ($) poolingDate	Dec. 31, 2021	Dec. 31, 2022 USD ($) poolingDate	Dec. 31, 2021	Mar. 31, 2022 USD ($)
Debt Instrument [Line Items]
Outstanding Balance	$ 619,000		$ 619,000		$ 535,000
Unsecured Debt \| SBA Debentures
Debt Instrument [Line Items]
Outstanding Balance	$ 104,000		$ 104,000		$ 40,000
Number of pooling date \| poolingDate	2		2
Weighted-average interest rate	3.70%	1.43%	2.98%	1.24%
Unsecured Debt \| Debentures due September 2031
Debt Instrument [Line Items]
Fixed Interest Rate	1.575%		1.575%
Outstanding Balance	$ 15,000		$ 15,000
Unsecured Debt \| Debentures due March 2032
Debt Instrument [Line Items]
Fixed Interest Rate	3.209%		3.209%
Outstanding Balance	$ 25,000		$ 25,000
Unsecured Debt \| Debentures due January 2032
Debt Instrument [Line Items]
Fixed Interest Rate	4.533%		4.533%
Outstanding Balance	$ 40,000		$ 40,000
Secured Debt \| Debentures not pooled
Debt Instrument [Line Items]
Outstanding Balance	$ 24,000		$ 24,000
Weighted-average interest rate			5.14%

INCOME TAXES - Book and Tax Basis Differences Relating to Dividends and Distributions (Details) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Additional capital
Investment Company, Summary Of Dividends And Distributions, Tax Differences [Line Items]
Total distributable earnings	$ (5,126)	$ (6,255)
Total distributable earnings
Investment Company, Summary Of Dividends And Distributions, Tax Differences [Line Items]
Total distributable earnings	$ 5,126	$ 6,255

INCOME TAXES - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended					9 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Income Tax Contingency [Line Items]
Dividends	$ 2,400	$ 14,300	$ 16,600	$ 11,800
Dividends cash paid (in usd per share)			$ 0.63	$ 0.48
Dividends declared (in usd per share)	$ 0.57	$ 0.50
Cost of investments	$ 1,150,600			$ 852,400		$ 1,150,600
Gross unrealized appreciation	66,900			67,800		66,900
Gross unrealized depreciation	(66,700)			(61,700)		(66,700)
Net unrealized appreciation (depreciation)	200			6,100		200
Deferred tax liability	11,427			$ 5,747		11,427
Excise tax	200				$ 100	468	$ 191
RIC
Income Tax Contingency [Line Items]
Cost of investments	1,116,800					1,116,800
Gross unrealized appreciation	9,700					9,700
Gross unrealized depreciation	(64,300)					(64,300)
Net unrealized appreciation (depreciation)	(54,600)					(54,600)
Taxable Subsidiary
Income Tax Contingency [Line Items]
Cost of investments	33,800					33,800
Gross unrealized appreciation	57,200					57,200
Gross unrealized depreciation	(2,400)					(2,400)
Net unrealized appreciation (depreciation)	$ 54,800					$ 54,800
Regular Dividends
Income Tax Contingency [Line Items]
Dividends cash paid (in usd per share)			0.48
Dividends declared (in usd per share)	$ 0.52
Special Dividend
Income Tax Contingency [Line Items]
Dividends cash paid (in usd per share)			$ 0.15
Supplemental dividend
Income Tax Contingency [Line Items]
Dividends declared (in usd per share)	$ 0.05

INCOME TAXES - Schedule of Distributions (Details) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Distributions on tax basis	$ 60,960	$ 56,633

INCOME TAXES - Net Assets Resulting From Operations To Estimated RIC Taxable Income (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Net increase (decrease) in net assets from operations	$ 2,949	$ 9,458	$ 2,510	$ 12,560	$ (4,556)	$ 15,142	$ 14,917	$ 23,146
Net unrealized depreciation (appreciation) on investments							13,989	(4,306)
Income/gain (expense/loss) recognized for tax on pass-through entities							10	1,558
(Gain) loss recognized on dispositions							(1,473)	329
Capital loss carryover							14,454	308
Net operating income - wholly-owned subsidiary							1,071	(9,186)
Dividend income from wholly-owned subsidiary							1,068	0
Non-deductible tax expense							466	191
Loss on extinguishment of debt							0	12,950
Non-deductible compensation							2,443	2,688
Compensation related book/tax differences							(1,471)	2,542
Other book/tax differences							1,839	3,518
Estimated distributable income before deductions for distributions							47,313	$ 33,738
Capital loss carryover	$ 31,900						$ 31,900

INCOME TAXES - Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Mar. 31, 2022
Deferred tax asset:
Net operating loss carryforwards	$ 0	$ 0
Interest	220	185
Total deferred tax asset	220	185
Deferred tax liabilities:
Net unrealized appreciation on investments	(10,911)	(4,899)
Net basis differences in portfolio investments	(736)	(1,033)
Total deferred tax liabilities	(11,647)	(5,932)
Total net deferred tax (liabilities) assets	$ (11,427)	$ (5,747)

INCOME TAXES - Schedule of Significant Components of Income Tax Provision (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Investment Company, Summary Of Dividends And Distributions, Tax Differences [Line Items]
Excise tax	$ 200	$ 100	$ 468	$ 191
Total income tax (benefit) provision			$ (20)	$ 648

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

SHAREHOLDERS' EQUITY - Narrative (Details)				3 Months Ended		9 Months Ended		46 Months Ended
SHAREHOLDERS' EQUITY - Narrative (Details)	Nov. 17, 2022 USD ($) $ / shares shares	Feb. 04, 2020 USD ($) sales_agent	Jul. 18, 2011	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Aug. 31, 2022 USD ($)	Aug. 02, 2022 USD ($)	Aug. 01, 2022 USD ($)	Jul. 28, 2021 USD ($)	May 26, 2021 USD ($)	Mar. 04, 2019 USD ($)
Subsidiary or Equity Method Investee [Line Items]
Right to grant period			10 years
Stock repurchase program, authorized amount									$ 20,000,000			$ 20,000,000
Public Equity Offering
Subsidiary or Equity Method Investee [Line Items]
Number of shares sold (in shares) \| shares	2,534,436
Par value, common stock (in usd per share) \| $ / shares	$ 18.15
Gross proceeds received	$ 46,000,000
Net proceeds received	$ 44,100,000
Equity ATM Program
Subsidiary or Equity Method Investee [Line Items]
Number of shares sold (in shares) \| shares				3,264,878	616,156	6,909,446	2,834,734	15,087,106
Gross proceeds received				$ 58,324,000	$ 16,000,000	$ 131,990,000	$ 74,463,000	$ 315,500,000
Net proceeds received				$ 57,449,000	$ 15,760,000	$ 130,010,000	$ 73,347,000	$ 310,300,000
Maximum consideration threshold		$ 100,000,000								$ 650,000,000	$ 250,000,000		$ 250,000,000	$ 50,000,000
Number of additional sales agents \| sales_agent		2
Gross sales commission percentage													1.50%	2.00%
Weighted average price per share (in usd per share) \| $ / shares				$ 17.86	$ 25.97	$ 19.10	$ 26.27	$ 20.91
Available under the Equity ATM Program				$ 334,500,000		$ 334,500,000		$ 334,500,000
2010 Plan \| Restricted Stock
Subsidiary or Equity Method Investee [Line Items]
Right to grant period			10 years

SHAREHOLDERS' EQUITY - Summary of Shares Sold (Details) - Equity ATM Program - USD ($)	3 Months Ended		9 Months Ended		46 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022
Subsidiary, Sale of Stock [Line Items]
Number of shares sold (in shares)	3,264,878	616,156	6,909,446	2,834,734	15,087,106
Gross proceeds received	$ 58,324,000	$ 16,000,000	$ 131,990,000	$ 74,463,000	$ 315,500,000
Net proceeds received	$ 57,449,000	$ 15,760,000	$ 130,010,000	$ 73,347,000	$ 310,300,000
Weighted average price per share (in usd per share)	$ 17.86	$ 25.97	$ 19.10	$ 26.27	$ 20.91
Remaining receivable	$ 2,700,000	$ 0	$ 2,700,000	$ 0	$ 2,700,000

SHAREHOLDERS' EQUITY - Shares Repurchased In Connection With The Vesting Of Restricted Stock Awards (Details) - Shares repurchased for restricted stock awards vested - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Equity, Class of Treasury Stock [Line Items]
Number of shares repurchased (in shares)	19,917	31,492	49,590	52,124
Aggregate cost of shares repurchased (in thousands)	$ 380	$ 862	$ 1,021	$ 1,408
Weighted average price per share (in usd per share)	$ 19.09	$ 27.38	$ 20.59	$ 27.01

STOCK BASED COMPENSATION PLANS - Narrative (Details)		3 Months Ended			9 Months Ended
STOCK BASED COMPENSATION PLANS - Narrative (Details)	Jul. 18, 2011	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($)	Jun. 30, 2021 USD ($) employee	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($)	Jul. 18, 2021 shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Right to grant period	10 years
Share-based compensation expense		$ 992,000	$ 849,000		$ 2,873,000	$ 2,848,000
Employee affected \| employee				1
Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted-average vesting period					2 years 7 months 6 days
Share-based compensation expense		1,000,000	$ 800,000		$ 2,900,000	$ 2,800,000
Incremental compensation cost				$ 600,000
Non-vested restricted stock awards		$ 8,000,000			$ 8,000,000
Restricted Stock \| 2010 Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period					4 years
Right to grant period	10 years
Restricted Stock \| 2021 Employee Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Available for issuance (in shares) \| shares							1,200,000
Remaining number of shares authorized (in shares) \| shares		1,002,633			1,002,633
Restricted Stock \| Non-Employee Director Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period					1 year
Available for issuance (in shares) \| shares		120,000			120,000
Remaining number of shares authorized (in shares) \| shares		107,895			107,895
Term of service					1 year
Grant market value		$ 50,000			$ 50,000
Weighted-average vesting period					1 year
Share-based compensation expense		$ 62,900			$ 98,400

STOCK BASED COMPENSATION PLANS - Summary of Restricted Stock Outstanding (Details) - Restricted Stock - $ / shares	9 Months Ended	12 Months Ended
	Dec. 31, 2022	Mar. 31, 2022
2010 Plan and 2021 Employee Plan
Number of Shares
Beginning balance (in shares)	395,993
Granted (in shares)	199,042
Vested (in shares)	(148,774)
Forfeited (in shares)	(4,925)
Ending balance (in shares)	441,336	395,993
Weighted Average Fair Value Per Share at grant date
Beginning balance (in dollars per share)	$ 21.48
Granted (in dollars per share)	21.25
Vested (in dollars per share)	20.49
Forfeited (in dollars per share)	23.52
Ending balance (in dollars per share)	$ 21.48	$ 21.48
Weighted Average Remaining Vesting Term (in Years)
Weighted-average vesting term	2 years 7 months 6 days	2 years 4 months 24 days
Granted	3 years 4 months 24 days
Non-Employee Director Plan
Number of Shares
Beginning balance (in shares)	0
Granted (in shares)	12,105
Vested (in shares)	0
Forfeited (in shares)	0
Ending balance (in shares)	12,105	0
Weighted Average Fair Value Per Share at grant date
Beginning balance (in dollars per share)	$ 0
Granted (in dollars per share)	20.66
Vested (in dollars per share)	0
Forfeited (in dollars per share)	0
Ending balance (in dollars per share)	$ 20.66	$ 0
Weighted Average Remaining Vesting Term (in Years)
Weighted-average vesting term	7 months 6 days
Granted	7 months 6 days

OTHER EMPLOYEE COMPENSATION (Details) - USD ($)	3 Months Ended		9 Months Ended
OTHER EMPLOYEE COMPENSATION (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Retirement Benefits [Abstract]
Employer matching contribution (up to)			4.50%
Matching contributions cost	$ 28,600	$ 25,900	$ 158,100	$ 133,900

COMMITMENTS AND CONTINGENCIES - Unused Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Mar. 31, 2022
Other Commitments [Line Items]
Total unused commitments to extend financing	$ 159,740	$ 134,251
Revolving Loans
Other Commitments [Line Items]
Total unused commitments to extend financing	87,197	57,640
Delayed Draw Term Loans
Other Commitments [Line Items]
Total unused commitments to extend financing	67,206	71,274
Other
Other Commitments [Line Items]
Total unused commitments to extend financing	$ 5,337	$ 5,337

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Gain Contingencies [Line Items]
Lease expense	$ 63,100	$ 58,100	$ 189,200	$ 174,400
Operating lease asset	1,900,000		1,900,000
Operating lease liability	$ 2,900,000		$ 2,900,000
Remaining lease term	9 years 9 months 18 days		9 years 9 months 18 days
Discount rate	6.89%		6.89%
Letters of credit issued and outstanding
Gain Contingencies [Line Items]
Expiring letters of credit	$ 900,000		$ 900,000
February 2023 \| Letters of credit issued and outstanding
Gain Contingencies [Line Items]
Expiring letters of credit	400,000		400,000
April 2023 \| Letters of credit issued and outstanding
Gain Contingencies [Line Items]
Expiring letters of credit	200,000		200,000
August 2023 \| Letters of credit issued and outstanding
Gain Contingencies [Line Items]
Expiring letters of credit	$ 300,000		$ 300,000

COMMITMENTS AND CONTINGENCIES - Future Minimum Payments (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2023	$ 92
2024	406
2025	416
2026	426
2027	436
Thereafter	2,578
Total	$ 4,354

RELATED PARTY TRANSACTIONS (Details) - USD ($)	3 Months Ended		9 Months Ended
RELATED PARTY TRANSACTIONS (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Mar. 31, 2022
Related Party Transaction [Line Items]
Management fees from our portfolio companies.	$ 0	$ 0	$ 0	$ 0
Corporate Joint Venture
Related Party Transaction [Line Items]
Management fees from our portfolio companies.	25,000		75,000
Dividends receivable	$ 1,900,000		$ 1,900,000		$ 1,700,000

Amount of revenue, fees and commissions earned from transactions between (a) a parent company and its subsidiaries; (b) subsidiaries of a common parent; (c) an entity and trusts for the benefit of employees, for example, but not limited to, pension and profit-sharing trusts that are managed by or under the trusteeship of the entity's management; (d) an entity and its principal, owners, management, or members of their immediate families; and (e) affiliates.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 946
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07.1(c))
-URI https://asc.fasb.org/extlink&oid=120401555&loc=SL114874292-224272

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(B))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(C))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.1(e))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

SUMMARY OF PER SHARE INFORMATION (Details) - $ / shares	3 Months Ended						9 Months Ended
SUMMARY OF PER SHARE INFORMATION (Details) - $ / shares	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2022	Dec. 31, 2021	Mar. 31, 2022
Per Share Data:
Investment income (in usd per share)	$ 1.04			$ 0.95			$ 2.90	$ 2.73
Operating expenses (in usd per share)	(0.44)			(0.44)			(1.26)	(1.33)
Income taxes (in usd per share)	0.02			0			0	(0.03)
Net investment income (in usd per share)	0.62			0.51			1.64	1.37
Net realized gain (loss), net of tax (in usd per share)	(0.36)			0.12			(0.62)	0.23
Net unrealized (depreciation) appreciation on investments, net of tax (in usd per share)	(0.17)			(0.09)			(0.49)	0.19
Realized loss on extinguishment of debt (in usd per share)	0			0			0	(0.76)
Total increase from investment operations (in usd per share)	0.09			0.54			0.53	1.03
Accretive effect of share issuances and repurchases (in usd per share)	0.17			0.24			0.43	1.17
Dividends to shareholders (in usd per share)	(0.57)	$ (0.50)	$ (0.63)	(0.97)	$ (0.54)	$ (0.53)	(1.70)	(2.04)
Common stock withheld for payroll taxes upon vesting of restricted stock (in usd per share)	0			(0.01)			(0.01)	(0.03)
Share based compensation expense (in usd per share)	0.03			0.04			0.10	0.12
Other (in usd per share)	0			(0.01)			0.18	0.03
(Decrease) increase in net asset value (in usd per share)	(0.28)			(0.17)			(0.61)	0.18
Net asset value
Beginning of period (in usd per share)	16.53		$ 16.86	16.36		$ 16.01	16.86	16.01
End of period (in usd per share)	$ 16.25	$ 16.53		$ 16.19	$ 16.36		$ 16.25	$ 16.19
Ratios and Supplemental Data
Ratio of operating expenses to average net assets	2.69%			2.71%			7.56%	8.09%
Ratio of net investment income to average net assets	3.71%			3.08%			9.78%	8.31%
Total investment return	4.31%			4.25%			(20.95%)	23.51%
Weighted-average common and fully diluted shares outstanding (in shares)	31,381,360			23,432,522			28,304,309	22,393,935
Weighted average shares outstanding – basic (in share)	31,381,360			23,432,522			28,304,309	22,393,935
Common shares outstanding at end of period (in shares)	34,559,034			23,926,000			34,559,034	23,926,000	24,958,520

SIGNIFICANT SUBSIDIARIES - I-45 SLF LLC Loan Portfolio (Details) - USD ($)
$ in Thousands

Dec. 31, 2022

Mar. 31, 2022

Investments at fair value

Shares (in shares)

1,051

Investment interest rate

9.50%

19.00%

^[1],[2]

Principal

$ 4,188

$ 4,282

Cost

4,172

4,265

4,012

4,239

Total unused commitments to extend financing

$ 400

$ 800

[1]

Investment is on non-accrual status as of March 31, 2022, meaning the Company has ceased to recognize interest income on the investment.

[2]

SUBSEQUENT EVENTS (Details) - Subsequent Event	Jan. 25, 2023 $ / shares
Subsequent Event [Line Items]
Dividends (in usd per share)	$ 0.58
Regular Dividends
Subsequent Event [Line Items]
Dividends (in usd per share)	0.53
Supplemental dividend
Subsequent Event [Line Items]
Dividends (in usd per share)	$ 0.05

Consolidated Schedule of Investments in and Advances to Affiliates (Unaudited) (Details) - USD ($)
$ in Thousands

9 Months Ended

Dec. 31, 2022

Mar. 31, 2022

^[1],[2],[3]

Principal Amount - Debt Investments

Shares (in shares)

2,000,000

$ 148,865

Amount of Interest or Dividends Credited in Income

15,543

Investments in and Advances to Affiliates, at Fair Value [Roll Forward]

Fair Value, beginning balance

189,482

Gross Additions

83,675

Gross Reductions

(37,784)

Amount of Realized Gain/(Loss)

(10,625)

Amount of Unrealized Gain/(Loss)

(3,791)

Fair Value, ending balance

$ 220,957

I-45 SLF LLC

Ownership percent

80.00%

^[4]

ITA Holdings Group, LLC