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FAIR VALUE MEASUREMENTS (Tables)
6 Months Ended
Sep. 30, 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 September 30, 2022 and March 31, 2022 (in thousands):
Fair Value Measurements
at September 30, 2022 Using
Asset CategoryTotalQuoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
First lien loans$852,555 $— $— $852,555 
Second lien loans50,437 — — 50,437 
Subordinated debt459 — — 459 
Preferred equity52,770 — — 52,770 
Common equity & warrants49,813 — — 49,813 
Investments measured at net asset value1
50,897 — — — 
Total Investments$1,056,931 $— $— $1,006,034 
Fair Value Measurements
at March 31, 2022 Using
Asset Category
TotalQuoted 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 loans52,645 — — 52,645 
Subordinated debt1,317 — — 1,317 
Preferred equity44,663 — — 44,663 
Common equity & warrants40,514 — — 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 September 30, 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.
Schedule of Valuation Techniques and Significant Level 3 Inputs
The tables below present the Valuation Techniques and Significant Level 3 Inputs (ranges and weighted averages) used in the valuation of CSWC’s debt and equity securities at September 30, 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 atSignificant
ValuationSeptember 30, 2022UnobservableWeighted
TypeTechnique(in thousands)InputsRangeAverage
First lien loansIncome Approach$803,645  Discount Rate 
7.1% - 62.7%
13.3%
Third Party Broker Quote
5.6 - 98
94.8
Market Approach48,910 Cost
97.6 - 99.0
98.2
Second lien loansIncome Approach36,264  Discount Rate 
13.2% - 30.0%
17.8%
Third Party Broker Quote
88.7 - 88.7
88.7
Market Approach14,173 Cost
91.2 - 91.2
91.2
Exit Value
100.0 - 100.0
100.0
Subordinated debtMarket Approach188 Cost
100.0 - 100.0
100.0
Enterprise Value Waterfall Approach271 EBITDA Multiple
7.5x - 7.5x
7.5x
Discount Rate
21.0% - 21.0%
21.0%
Preferred equityEnterprise Value Waterfall Approach52,020  EBITDA Multiple 
3.9x - 17.1x
10.3x
Discount Rate
12.6% - 36.2%
18.8%
Market Approach750 Cost
100.0 - 100.0
100.0
Common equity & warrantsEnterprise Value Waterfall Approach48,597  EBITDA Multiple 
5.4x - 13.0x
10.1x
Discount Rate
11.5% - 36.2%
16.8%
Market Approach207 Cost
100.0 - 100.0
100.0
Income Approach1,009 Third Party Broker Quote
76.6 - 76.6
76.6
Total Level 3 Investments$1,006,034 

           
Fair Value atSignificant
ValuationMarch 31, 2022UnobservableWeighted
TypeTechnique(in thousands)InputsRangeAverage
First lien loansIncome Approach$645,034 Discount Rate
7.3% - 30.6%
10.7%
Third Party Broker Quote
5.5 - 96.5
93.2
Market Approach94,838 Cost
80.2 - 99.0
98.1
Exit Value
100.0 - 102.0
101.8
Second lien loansIncome Approach49,541 Discount Rate
10.3% - 37.8%
15.4%
Third Party Broker Quote
97.3 - 97.3
97.3
Enterprise Value Waterfall Approach3,104 EBITDA Multiple
8.3x - 8.3x
8.3x
Discount Rate
22.1% - 22.1%
22.1%
Subordinated debtIncome Approach650 Discount Rate
27.4% - 27.4%
27.4%
Market Approach172 Cost
100.0 - 100.0
100.0
Enterprise Value Waterfall Approach495 EBITDA Multiple
8.1x - 8.1x
8.1x
Discount Rate
20.5% - 20.5%
20.5
Preferred equityEnterprise Value Waterfall Approach41,563 EBITDA Multiple
6.9x - 18.8x
10.6x
Discount Rate
12.5% - 40.8%
17.8%
Market Approach3,100 Cost
100.0 - 100.0
100.0
Common equity & warrantsEnterprise Value Waterfall Approach36,667 EBITDA Multiple
4.2x - 11.4x
8.5x
Discount Rate
10.1% - 32.2%
18.1%
Market Approach1,757 Exit Value
351.4 - 351.4
351.4
Income Approach2,090 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 six months ended September 30, 2022 and 2021 (in thousands):
Fair Value March 31, 2022Realized & Unrealized Gains (Losses)
Purchases of Investments1
RepaymentsPIK Interest CapitalizedDivestituresConversion/Reclassification of SecurityFair Value September 30, 2022YTD Unrealized Appreciation (Depreciation) on Investments held at period end
First lien loans$739,872 $(8,608)$211,433 $(85,598)$1,694 $— $(6,238)$852,555 $(10,824)
Second lien loans52,645 (4,461)2,862 (142)225 (692)— 50,437 (2,945)
Subordinated debt1,317 (915)— — 57 — — 459 (914)
Preferred equity44,663 (990)2,859 — — — 6,238 52,770 (991)
Common equity & warrants40,514 9,568 1,480 — — (1,749)— 49,813 9,576 
Total Investments$879,011 $(5,406)$218,634 $(85,740)$1,976 $(2,441)$— $1,006,034 $(6,098)
Fair Value March 31, 2021Realized & Unrealized Gains (Losses)
Purchases of Investments1
RepaymentsPIK Interest CapitalizedDivestituresConversion/Reclassification of SecurityFair Value September 30, 2021YTD Unrealized Appreciation (Depreciation) on Investments held at period end
First lien loans$524,161 $(592)$167,042 $(66,868)$1,589 $— $— $625,332 $(2,203)
Second lien loans36,919 254 15,543 (1,556)654 (53)— 51,761 290 
Subordinated debt11,534 184 169 — 441 — — 12,328 183 
Preferred equity22,608 609 4,211 — — — — 27,428 610 
Common equity & warrants36,052 10,267 783 — — (5,371)— 41,731 9,288 
Total Investments$631,274 $10,722 $187,748 $(68,424)$2,684 $(5,424)$— $758,580 $8,168 

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