DALLAS, May 20, 2008 (PRIME NEWSWIRE) -- Capital Southwest Corporation (Nasdaq:CSWC) announced today that the Securities and Exchange Commission has ruled in favor of the company's request to exclude an activist shareholder's proposal from its proxy statement. This proposal called for the company to engage an investment banking firm to evaluate alternatives including the liquidation of certain or all of the company's assets and the distribution of proceeds to shareholders. Capital Southwest sought and received a ruling from the SEC allowing the company to exclude the proposal.
Gary Martin, CEO of Capital Southwest, stated, "We genuinely appreciate and carefully weigh all input we get from shareholders as we execute our disciplined approach to investing for long-term growth, even when suggested actions are out of step with the majority of our shareholder base. This particular proposal urged a portfolio liquidation, undermining our distinctive desire to provide 'Patient Capital to Exceptional Businesses.'"
Capital Southwest's Chief Compliance Officer Jeff Peterson commented, "As of March 31, 2008, over half of our company's net asset value comprised four companies that were not publicly traded. For these companies, the valuation methodology and techniques and the resulting values determined by our directors were reviewed by a nationally recognized valuation firm and an independent registered public accounting firm. We continue our mission of employing the best industry practices to determine fair value across the portfolio, and we are proud that Capital Southwest has previously been recognized by Audit Integrity as one of America's 100 Most Trustworthy Companies for fair dealing with stakeholders."
About Capital Southwest
Capital Southwest is a Dallas-based investment company that provides patient equity capital to exceptional businesses. As a public company (Nasdaq:CSWC), Capital Southwest has the flexibility to hold investments indefinitely, which has provided its managers a stable ownership platform since its founding in 1961.