Dallas-based Capital Southwest Corp. announced that CFO Michael Sarner has been appointed president and chief executive officer, succeeding Bowen Diehl who will continue to serve the company in an advisory capacity for at least another year.

Sarner also will serve on the company’s board.

“On behalf of the board, we want to both acknowledge and celebrate Bowen’s long career at Capital Southwest,” board chair David Brooks said in a statement. “We greatly appreciate the leadership he has provided to Capital Southwest over the past decade, and we wish him the very best. Succession planning has always been a priority for the company, and Michael, Bowen and the board are all in agreement that it is time to transition the leadership of Capital Southwest. Michael and Bowen have both been fully immersed in the strategy and operations of the Company, which will make this a smooth transition.”

Also, Chris Rehberger has been promoted from executive vice president of finance and treasurer to CFO, treasurer & secretary of the company, and Tabitha Geiger has been promoted from deputy compliance officer to chief compliance officer.

“I couldn’t be more optimistic about the future of Capital Southwest under Michael’s leadership. He has worked tirelessly by my side over the past decade building a best-in-class BDC and, together with the rest of our leadership team, I am confident the firm has the right team to continue executing Capital Southwest’s strategy going forward,” Diehl said in a statement. “I am very proud of what we have built here together, and I am grateful for having had the opportunity over the past ten years to lead Capital Southwest’s transformation into a BDC with one of the most robust business models in the industry.”

Diehl noted the importance of a smooth transition.

“While stepping down is clearly bittersweet, succession planning is an important part of a company’s evolution, and I very much look forward to supporting Capital Southwest in any way that Michael and the team find helpful, in the short term as an advisor, and in the long term as a fellow shareholder,” he said.

‘Renewed vision for the future’

Sarner joined Capital Southwest in 2015 and brings more than 30 years of financial, treasury, and BDC experience to his new role.

The company said he has been instrumental in planning and executing on both the corporate and capitalization strategy for Capital Southwest, raising more than $2 billion in both debt and equity. In addition to serving as CFO, Sarner also served as the company’s chief compliance officer and secretary.

Sarner also has served on the investment committee for all of his time with Capital Southwest. Previously, he spent 15 years at American Capital in a variety of financial roles, including EVP and treasurer.

“I’m honored to be entrusted with Capital Southwest’s future,” Sarner said. “The company is well-positioned for growth with a strong and cohesive leadership team – including Chris with whom I’ve worked closely for the past two decades. I look forward to fostering the growth of the entire Capital Southwest team, as well as providing leadership for the Company with a renewed vision for the future.”

Financial and compliance leadership

Rehberger joined Capital Southwest in 2015 and has 20 years’ experience in corporate finance roles within the BDC space.

He also spent 10 years in corporate finance roles at American Capital working alongside Sarner.

Geiger has nearly a decade of experience and previously, she spent eight years in compliance consulting with IQ-EQ, where she was responsible for implementing and overseeing compliance programs for private equity, venture capital, and hedge fund managers.

Capital Southwest Corp. is an internally managed business development company with roughly $1.7 billion in investments.

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