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Financial Services >> CEO Interviews >> March 19, 2026

CSWC CEO: Why Capital Southwest Trades at a 34% Premium While 29 BDC Competitors Cut Dividends

Key Takeaway: In this exclusive interview, Capital Southwest (CSWC) CEO Michael Sarner reveals how the firm maintains a 34% market premium and 100% dividend coverage while 29 BDC competitors recently cut payouts. Sarner discusses CSWC’s disciplined focus on the lower middle market, a conservative 0.89x leverage ratio, and the strategic advantages of an internal management structure that perfectly aligns executive incentives with shareholder value. Learn how the firm is navigating 2026 macro risks, from AI disruption to shifting interest rates. Profile
Sarner, Michael S.
Michael S. Sarner joined Capital Southwest in 2015 and currently serves as Chief Executive Officer, bringing over 30 years of experience in finance, treasury, and BDCs. Leveraging his extensive background in financial services, Mr. Sarner has built best-in-class teams and innovative solutions to support the company’s growth. Under his leadership, his team has raised over $2 billion in debt and equity financing and secured Investment Company Ratings from Moody’s Investor Services and Fitch Ratings. As CEO, Mr. Sarner is responsible for the firm’s strategic direction. He serves as Chair of the Investment Committee and is a member of the CSWC board of directors. Before joining Capital Southwest, he spent 15 years at American Capital, Ltd., holding various financial leadership roles, including Senior Vice President of Treasury. Mr. Sarner received a Bachelor in Business Administration/Accounting from James Madison University and a Master in Finance from George Washington University’s School of Business and Public Management. He is a Certified Public Accountant. Mr. Sarner lives in Dallas with his wife and three sons. Profile
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TWST: Would you give me a little bit of the background of Capital Southwest? When it was started, why it was started, and what was going on at the time?

Mr.

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