Capital Southwest (NASDAQ:CSWC) is a mid-sized business development company, or BDC, with a NAV base of ~ $720 million and a market cap of roughly $1 billion, which indicates a notable premium above the underlying value. If we look at the investment strategy of CSWC and the corresponding investment criteria, we will notice the same standards that are in place for most BDCs, except the ones that focus on VC-type businesses.