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FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended
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Mar. 31, 2024
Fair Value Disclosures [Abstract] |
Schedule Investment Portfolio by Level | The following fair value hierarchy tables set forth our investment portfolio by level as of March 31, 2024 and March 31, 2023 (in thousands):
|  |  | Fair Value Measurements
|  |  | at March 31, 2024 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 | $ | 1,309,449 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,309,449 |
Second lien loans | 33,774 |  |  | — |  |  | — |  |  | 33,774 |
Subordinated debt | 1,336 |  |  | — |  |  | — |  |  | 1,336 |
Preferred equity | 71,127 |  |  | — |  |  | — |  |  | 71,127 |
Common equity & warrants | 60,875 |  |  | — |  |  | — |  |  | 60,875 |
Total Investments | $ | 1,476,561 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,476,561 |
|  |  | 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 March 31, 2023, the redemption restrictions dictated that we cannot withdraw our membership interest without unanimous approval. We were permitted to sell or transfer our membership interest provided we 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 March 31, 2024 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 |  | March 31, 2024 |  | Unobservable |  |  |  | Weighted
Type | Technique |  | (in thousands) |  | Inputs |  | Range |  | Average
First lien loans | Income Approach |  | $ | 1,211,447 |  |  | Discount Rate |  | 5.5% - 43.8% |  | 13.4%
|  |  |  |  | Third Party Broker Quote |  | 38.3 - 100.0 |  | 92.4
| Market Approach |  | 98,002 |  |  | Cost |  | 98.0 - 99.0 |  | 98.1
Second lien loans | Income Approach |  | 33,774 |  |  | Discount Rate |  | 13.4% - 33.3% |  | 15.6%
|  |  |  |  | Third Party Broker Quote |  | 28.0 - 28.0 |  | 28.0
Subordinated debt | Income Approach |  | 568 |  |  | Discount Rate |  | 18.7% - 18.7% |  | 18.7%
|  |  |  |  | Third Party Broker Quote |  | 23.3 - 23.3 |  | 23.3
| Market Approach |  | 210 |  |  | Cost |  | 94.0 - 100.0 |  | 96.1
| Enterprise Value Waterfall Approach |  | 558 |  |  | EBITDA Multiple |  | 5.7x - 7.9x |  | 6.4x
|  |  |  |  | Discount Rate |  | 13.2% - 18.6% |  | 14.8%
Preferred equity | Enterprise Value Waterfall Approach |  | 68,877 |  |  | EBITDA Multiple |  | 4.3x - 17.0x |  | 9.9x
|  |  |  |  | Discount Rate |  | 10.3% - 38.0% |  | 16.7%
| Market Approach |  | 2,250 |  |  | Cost |  | 100.0 - 100.0 |  | 100.0
Common equity & warrants | Enterprise Value Waterfall Approach |  | 60,375 |  |  | EBITDA Multiple |  | 4.7x - 15.6x |  | 8.6x
|  |  |  |  | Discount Rate |  | 10.3% - 30.2% |  | 16.0%
| Market Approach |  | 500 |  |  | Cost |  | 100.0 - 100.0 |  | 100.0
Total Level 3 Investments |  |  | $ | 1,476,561 |  |  |  |  |  |  |
|  |  | 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 years ended March 31, 2024 and 2023 (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 March 31, 2024 |  | YTD Unrealized Appreciation (Depreciation) on Investments held at period end
First lien loans | $ | 1,000,984 |  |  | $ | (25,020) |  |  | $ | 520,239 |  |  | $ | (176,763) |  |  | $ | 10,845 |  |  | $ | (13,875) |  |  | $ | (6,961) |  |  | $ | 1,309,449 |  |  | $ | (19,824) |
Second lien loans | 35,820 |  |  | 342 |  |  | 169 |  |  | (2,913) |  |  | 356 |  |  | — |  |  | — |  |  | 33,774 |  |  | 339 |
Subordinated debt | 791 |  |  | (31) |  |  | 562 |  |  | (19) |  |  | 33 |  |  | — |  |  | — |  |  | 1,336 |  |  | (31) |
Preferred equity | 63,393 |  |  | (5,442) |  |  | 10,279 |  |  | — |  |  | — |  |  | (273) |  |  | 3,170 |  |  | 71,127 |  |  | (5,340) |
Common equity & warrants | 54,144 |  |  | 517 |  |  | 6,281 |  |  | — |  |  | — |  |  | (3,858) |  |  | 3,791 |  |  | 60,875 |  |  | 285 |
Total Investments | $ | 1,155,132 |  |  | $ | (29,634) |  |  | $ | 537,530 |  |  | $ | (179,695) |  |  | $ | 11,234 |  |  | $ | (18,006) |  |  | $ | — |  |  | $ | 1,476,561 |  |  | $ | (24,571) |
| Fair Value March 31, 2022 |  | Realized & Unrealized Gains (Losses) |  | Purchases of Investments 1 |  | Repayments |  | PIK Interest Capitalized |  | Divestitures |  | Conversion/Exchange of Security |  | Fair Value March 31, 2023 |  | YTD Unrealized Appreciation (Depreciation) on Investments held at period end
First lien loans | $ | 739,872 |  |  | $ | (17,150) |  |  | $ | 415,332 |  |  | $ | (128,932) |  |  | $ | 5,577 |  |  | $ | — |  |  | $ | (13,715) |  |  | $ | 1,000,984 |  |  | $ | (13,189) |
Second lien loans | 52,645 |  |  | (7,127) |  |  | 2,990 |  |  | (12,310) |  |  | 314 |  |  | (692) |  |  | — |  |  | 35,820 |  |  | (5,923) |
Subordinated debt | 1,317 |  |  | (398) |  |  | 385 |  |  | — |  |  | 74 |  |  | — |  |  | (587) |  |  | 791 |  |  | (294) |
Preferred equity | 44,663 |  |  | (3,360) |  |  | 7,788 |  |  | — |  |  | — |  |  | — |  |  | 14,302 |  |  | 63,393 |  |  | (267) |
Common equity & warrants | 40,514 |  |  | 10,547 |  |  | 5,747 |  |  | — |  |  | — |  |  | (2,664) |  |  | — |  |  | 54,144 |  |  | 11,730 |
Total Investments | $ | 879,011 |  |  | $ | (17,488) |  |  | $ | 432,242 |  |  | $ | (141,242) |  |  | $ | 5,965 |  |  | $ | (3,356) |  |  | $ | — |  |  | $ | 1,155,132 |  |  | $ | (7,943) |
1 Includes purchases of new investments, as well as discount accretion on existing investments. Also included are distributions-in-kind of investments received in connection with the dissolution and liquidation of I-45 SLF. See Note 13 - Related Party Transactions for more information. 2 Includes $3.8 million of cost basis allocated from first lien debt to warrants.

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