Trinity Capital, Capital Southwest form JV
Each company committed $50M for a 50% equity stake
Capital Southwest and Trinity Capital have formed a joint venture focused on investing in first-out senior secured debt in the lower middle market.
The joint venture will be equally owned by the two business development companies, with each committing $50 million and holding a 50% equity stake, according to today’s Trinity Capital release. A board of managers with equal representation from both firms will oversee investment and operational decisions. The vehicle expects to obtain leverage through a senior-secured credit facility, with borrowings used to fund portfolio investments.
Dallas-based Capital Southwest manages approximately $2 billion in investments at fair value as of Dec. 31, 2025, according to the release. The firm focuses on providing $5 million to $50 million investments to middle-market companies across the capital structure, including first- and second-lien loans and non-control equity co-investments.
Phoenix-based Trinity Capital is an alternative asset manager that invests in private credit markets through several lending verticals, including sponsor finance, equipment finance, tech lending, asset-based lending and life sciences, according to the release. The company operates across the United States and Europe.
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