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FAIR VALUE MEASUREMENTS (Tables)
3 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule Investment Portfolio by Level
The following fair value hierarchy tables set forth our investment portfolio by level as of June 30, 2023 and March 31, 2023 (in thousands):
Fair Value Measurements
at June 30, 2023 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$1,075,200 $— $— $1,075,200 
Second lien loans34,935 — — 34,935 
Subordinated debt780 — — 780 
Preferred equity67,659 — — 67,659 
Common equity & warrants54,882 — — 54,882 
Investments measured at net asset value1
51,862 — — — 
Total Investments$1,285,318 $— $— $1,233,456 
Fair Value Measurements
at March 31, 2023 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$1,000,984 $— $— $1,000,984 
Second lien loans35,820 — — 35,820 
Subordinated debt791 — — 791 
Preferred equity63,393 — — 63,393 
Common equity & warrants54,144 — — 54,144 
Investments measured at net asset value1
51,256 — — — 
Total Investments$1,206,388 $— $— $1,155,132 

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 June 30, 2023 and March 31, 2023, 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 June 30, 2023 and March 31, 2023. 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
ValuationJune 30, 2023UnobservableWeighted
TypeTechnique(in thousands)InputsRangeAverage
First lien loansIncome Approach$993,603  Discount Rate 
6.3% - 36.5%
13.5%
Third Party Broker Quote
94.5 - 94.5
94.5
Market Approach81,597 Cost
92.3 - 98.1
97.7
Exit Value
100.0 - 100.0
100.0
Second lien loansIncome Approach34,935  Discount Rate 
13.1% - 44.1%
27.4%
Third Party Broker Quote
52.5 - 52.5
52.5
Subordinated debtMarket Approach194 Cost
100.0 - 100.0
100.0
Enterprise Value Waterfall Approach586 EBITDA Multiple
6.0x - 7.9x
6.7x
Discount Rate
17.6% - 25.1%
20.2%
Preferred equityEnterprise Value Waterfall Approach66,353  EBITDA Multiple 
4.8x - 16.6x
9.7x
Discount Rate
12.1% - 31.0%
18.1%
Market Approach1,306 Cost
100.0 - 100.0
100.0
Common equity & warrantsEnterprise Value Waterfall Approach51,778  EBITDA Multiple 
5.5x - 18.6x
9.4x
Discount Rate
10.8% - 30.6%
16.6%
Market Approach3,104 Cost
100.0 - 100.0
100.0
Total Level 3 Investments$1,233,456 

           
Fair Value atSignificant
ValuationMarch 31, 2023UnobservableWeighted
TypeTechnique(in thousands)InputsRangeAverage
First lien loansIncome Approach$953,918 Discount Rate
6.9% - 26.2%
13.0%
Third Party Broker Quote
5.1 - 96.5
93.9
Market Approach41,923 Cost
94.1 - 98.1
97.9
Enterprise Value Waterfall Approach5,143 EBITDA Multiple
9.4x - 9.4x
9.4x
Discount Rate
27.2% - 27.2%
27.2%
Second lien loansIncome Approach32,226 Discount Rate
18.3% - 34.3%
25.1%
Third Party Broker Quote
61.3 - 61.3
61.3
Enterprise Value Waterfall Approach3,594 EBITDA Multiple
9.4x - 9.4x
9.4x
Discount Rate
27.2% - 27.2%
27.2%
Subordinated debtMarket Approach205 Cost
100.0 - 100.0
100.0
Enterprise Value Waterfall Approach586 EBITDA Multiple
6.0x - 7.7x
6.6x
Discount Rate
20.2% - 25.0%
21.8%
Preferred equityEnterprise Value Waterfall Approach59,518 EBITDA Multiple
4.7x - 16.7x
9.8x
Discount Rate
11.7% - 30.8%
17.1%
Market Approach3,875 Cost
100.0 - 100.0
100.0
Common equity & warrantsEnterprise Value Waterfall Approach53,064 EBITDA Multiple
5.5x - 18.6x
9.5x
Discount Rate
11.4% - 36.6%
18.2%
Market Approach1,080 Exit Value
100.0 - 100.0
100.0
Total Level 3 Investments$1,155,132 
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 three months ended June 30, 2023 and 2022 (in thousands):
Fair Value March 31, 2023Realized & Unrealized Gains (Losses)
Purchases of Investments1
RepaymentsPIK Interest CapitalizedDivestitures
Conversion/Exchange of Security2
Fair Value June 30, 2023YTD Unrealized Appreciation (Depreciation) on Investments held at period end
First lien loans$1,000,984 $558 $100,244 $(24,785)$1,990 $— $(3,791)$1,075,200 $446 
Second lien loans35,820 (876)62 (71)— — — 34,935 (876)
Subordinated debt791 — — (20)— — 780 — 
Preferred equity63,393 2,422 1,844 — — — — 67,659 2,422 
Common equity & warrants54,144 (2,779)3,128 — — (3,402)3,791 54,882 (2,965)
Total Investments$1,155,132 $(675)$105,278 $(24,876)$1,999 $(3,402)$— $1,233,456 $(973)
Fair Value March 31, 2022Realized & Unrealized Gains (Losses)
Purchases of Investments1
RepaymentsPIK Interest CapitalizedDivestituresConversion/Exchange of SecurityFair Value June 30, 2022YTD Unrealized Appreciation (Depreciation) on Investments held at period end
First lien loans$739,872 $(1,546)$132,425 $(55,937)$623 $— $— $815,437 $(613)
Second lien loans52,645 (4,145)62 (71)139 — — 48,630 (4,145)
Subordinated debt1,317 — — — 48 — — 1,365 — 
Preferred equity44,663 (778)2,109 — — — — 45,994 (778)
Common equity & warrants40,514 3,540 1,208 — — (1,749)— 43,513 3,549 
Total Investments$879,011 $(2,929)$135,804 $(56,008)$810 $(1,749)$— $954,939 $(1,987)

1Includes purchases of new investments, as well as discount accretion on existing investments.
2Represents the allocation of cost basis from first lien debt to warrants.