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FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended
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Sep. 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 September 30, 2023 and March 31, 2023 (in thousands):
|  |  | Fair Value Measurements
|  |  | at September 30, 2023 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 | $ | 1,141,280 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,141,280 |
Second lien loans | 37,034 |  |  | — |  |  | — |  |  | 37,034 |
Subordinated debt | 760 |  |  | — |  |  | — |  |  | 760 |
Preferred equity | 66,440 |  |  | — |  |  | — |  |  | 66,440 |
Common equity & warrants | 54,630 |  |  | — |  |  | — |  |  | 54,630 |
Investments measured at net asset value 1 | 53,422 |  |  | — |  |  | — |  |  | — |
Total Investments | $ | 1,353,566 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,300,144 |
|  |  | Fair Value Measurements
|  |  | at March 31, 2023 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 | $ | 1,000,984 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,000,984 |
Second lien loans | 35,820 |  |  | — |  |  | — |  |  | 35,820 |
Subordinated debt | 791 |  |  | — |  |  | — |  |  | 791 |
Preferred equity | 63,393 |  |  | — |  |  | — |  |  | 63,393 |
Common equity & warrants | 54,144 |  |  | — |  |  | — |  |  | 54,144 |
Investments measured at net asset value 1 | 51,256 |  |  | — |  |  | — |  |  | — |
Total Investments | $ | 1,206,388 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,155,132 |
1 Certain 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, 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 September 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 at |  | Significant |  |  |  |
| Valuation |  | September 30, 2023 |  | Unobservable |  |  |  | Weighted
Type | Technique |  | (in thousands) |  | Inputs |  | Range |  | Average
First lien loans | Income Approach |  | $ | 1,086,345 |  |  | Discount Rate |  | 5.8% - 45.4% |  | 13.6%
|  |  |  |  | Third Party Broker Quote |  | 94.0 - 94.0 |  | 94.0
| Market Approach |  | 54,935 |  |  | Cost |  | 98.0 - 98.5 |  | 98.1
Second lien loans | Income Approach |  | 37,034 |  |  | Discount Rate |  | 13.2% - 31.4% |  | 22.1%
|  |  |  |  | Third Party Broker Quote |  | 52.5 - 52.5 |  | 52.5
Subordinated debt | Market Approach |  | 202 |  |  | Cost |  | 100.0 - 100.0 |  | 100.0
| Enterprise Value Waterfall Approach |  | 558 |  |  | EBITDA Multiple |  | 6.0x - 7.7x |  | 6.5x
|  |  |  |  | Discount Rate |  | 14.8% - 25.3% |  | 18.1%
Preferred equity | Enterprise Value Waterfall Approach |  | 64,440 |  |  | EBITDA Multiple |  | 4.8x - 15.9x |  | 9.9x
|  |  |  |  | Discount Rate |  | 12.7% - 30.9% |  | 19.0%
| Market Approach |  | 2,000 |  |  | Cost |  | 100.0 - 100.0 |  | 100.0
Common equity & warrants | Enterprise Value Waterfall Approach |  | 54,630 |  |  | EBITDA Multiple |  | 5.2x - 17.3x |  | 9.1x
|  |  |  |  | Discount Rate |  | 12.0% - 26.8% |  | 16.6%
Total Level 3 Investments |  |  | $ | 1,300,144 |  |  |  |  |  |  |
|  |  | Fair Value at |  | Significant |  |  |  |
| Valuation |  | March 31, 2023 |  | Unobservable |  |  |  | Weighted
Type | Technique |  | (in thousands) |  | Inputs |  | Range |  | Average
First lien loans | Income Approach |  | $ | 953,918 |  |  | Discount Rate |  | 6.9% - 26.2% |  | 13.0%
|  |  |  |  | Third Party Broker Quote |  | 5.1 - 96.5 |  | 93.9
| Market Approach |  | 41,923 |  |  | Cost |  | 94.1 - 98.1 |  | 97.9
| Enterprise Value Waterfall Approach |  | 5,143 |  |  | EBITDA Multiple |  | 9.4x - 9.4x |  | 9.4x
|  |  |  |  | Discount Rate |  | 27.2% - 27.2% |  | 27.2%
Second lien loans | Income Approach |  | 32,226 |  |  | Discount Rate |  | 18.3% - 34.3% |  | 25.1%
|  |  |  |  | Third Party Broker Quote |  | 61.3 - 61.3 |  | 61.3
| Enterprise Value Waterfall Approach |  | 3,594 |  |  | EBITDA Multiple |  | 9.4x - 9.4x |  | 9.4x
|  |  |  |  | Discount Rate |  | 27.2% - 27.2% |  | 27.2%
Subordinated debt | Market Approach |  | 205 |  |  | Cost |  | 100.0 - 100.0 |  | 100.0
| Enterprise Value Waterfall Approach |  | 586 |  |  | EBITDA Multiple |  | 6.0x - 7.7x |  | 6.6x
|  |  |  |  | Discount Rate |  | 20.2% - 25.0% |  | 21.8%
Preferred equity | Enterprise Value Waterfall Approach |  | 59,518 |  |  | EBITDA Multiple |  | 4.7x - 16.7x |  | 9.8x
|  |  |  |  | Discount Rate |  | 11.7% - 30.8% |  | 17.1%
| Market Approach |  | 3,875 |  |  | Cost |  | 100.0 - 100.0 |  | 100.0
Common equity & warrants | Enterprise Value Waterfall Approach |  | 53,064 |  |  | EBITDA Multiple |  | 5.5x - 18.6x |  | 9.5x
|  |  |  |  | Discount Rate |  | 11.4% - 36.6% |  | 18.2%
| Market Approach |  | 1,080 |  |  | Exit Value |  | 100.0 - 100.0 |  | 100.0
Total Level 3 Investments |  |  | $ | 1,155,132 |  |  |  |  |  |  |
Schedule 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, 2023 and 2022 (in thousands):
| Fair Value March 31, 2023 |  | Realized & Unrealized Gains (Losses) |  | Purchases of Investments 1 |  | Repayments |  | PIK Interest Capitalized |  | Divestitures |  | Conversion/Exchange of Security 2 |  | Fair Value September 30, 2023 |  | YTD Unrealized Appreciation (Depreciation) on Investments held at period end
First lien loans | $ | 1,000,984 |  |  | $ | (5,395) |  |  | $ | 200,986 |  |  | $ | (40,307) |  |  | $ | 2,678 |  |  | $ | (13,875) |  |  | $ | (3,791) |  |  | $ | 1,141,280 |  |  | $ | (5,740) |
Second lien loans | 35,820 |  |  | 2,184 |  |  | 126 |  |  | (1,114) |  |  | 18 |  |  | — |  |  | — |  |  | 37,034 |  |  | 2,181 |
Subordinated debt | 791 |  |  | (28) |  |  | — |  |  | (20) |  |  | 17 |  |  | — |  |  | — |  |  | 760 |  |  | (28) |
Preferred equity | 63,393 |  |  | (1,345) |  |  | 4,392 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 66,440 |  |  | (1,345) |
Common equity & warrants | 54,144 |  |  | (3,030) |  |  | 3,127 |  |  | — |  |  | — |  |  | (3,402) |  |  | 3,791 |  |  | 54,630 |  |  | (3,217) |
Total Investments | $ | 1,155,132 |  |  | $ | (7,614) |  |  | $ | 208,631 |  |  | $ | (41,441) |  |  | $ | 2,713 |  |  | $ | (17,277) |  |  | $ | — |  |  | $ | 1,300,144 |  |  | $ | (8,149) |
| Fair Value March 31, 2022 |  | Realized & Unrealized Gains (Losses) |  | Purchases of Investments 1 |  | Repayments |  | PIK Interest Capitalized |  | Divestitures |  | Conversion/Exchange of Security |  | Fair Value September 30, 2022 |  | YTD 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 loans | 52,645 |  |  | (4,461) |  |  | 2,862 |  |  | (142) |  |  | 225 |  |  | (692) |  |  | — |  |  | 50,437 |  |  | (2,945) |
Subordinated debt | 1,317 |  |  | (915) |  |  | — |  |  | — |  |  | 57 |  |  | — |  |  | — |  |  | 459 |  |  | (914) |
Preferred equity | 44,663 |  |  | (990) |  |  | 2,859 |  |  | — |  |  | — |  |  | — |  |  | 6,238 |  |  | 52,770 |  |  | (991) |
Common equity & warrants | 40,514 |  |  | 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) |
1 Includes purchases of new investments, as well as discount accretion on existing investments. 2 Represents the allocation of cost basis from first lien debt to warrants.

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- Definition Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 + Details
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