Stellus Capital Management Closes Stellus Credit Fund IV
Firm Hits Fundraising Target with Approximately $1.5 Billion of Investable Capital1
HOUSTON, May 19, 2026 /PRNewswire/ -- Stellus Capital Management, LLC ("Stellus" or the "Firm"), a leader in lower middle market direct lending, today announced the final close of Stellus Credit Fund IV ("SCF IV" or the "Fund"). The Firm met its fundraising target with approximately $1.5 billion of investable capital. SCF IV, the successor to Stellus Credit Fund III, closed on April 1, 2026, and has already invested in 44 portfolio companies.
Similar to its predecessor funds, SCF IV is focused on identifying and pursuing private credit opportunities, originated and underwritten by Stellus, across a diverse range of industries in the United States and Canada.
SCF IV received commitments from new and existing institutional and high-net-worth investors globally, including leading public and private pension plans, insurance companies, foundations, family offices, global investment banks, consultants, and other institutional investors.
Stellus recently announced it has entered into a definitive agreement to be acquired by Ridgepost Capital, Inc. ((formerly P10, Inc., NYSE:RPC), with the transaction expected to close in mid-2026. Stellus will continue to be managed by its current partners, who will retain control of day-to-day operations, including investment decisions and investment committee processes.
"The response to SCF IV from both new and returning investors speaks to the strength of what our team has built over 22 years in lower middle market direct lending. As we look ahead to joining the Ridgepost platform, we remain as focused as ever on the disciplined, relationship-driven approach that has defined Stellus since our founding – and we are excited to put this capital to work on behalf of our investors."
– Robert T. Ladd, Managing Partner, Stellus Capital Management
About Stellus Capital Management
Stellus is one of the longest tenured direct lenders specializing in senior secured, sponsor-backed loans in the lower middle market. Formed within the D.E. Shaw Group in 2004, Stellus spun out in 2012 and today manages ~$4 billion across various investment vehicles including closed-end institutional funds, a public BDC (NYSE:SCM), and a perpetual non-traded private BDC. Stellus is a single strategy firm, and its founding partners have been investing together in the lower middle market for 22+ years with a track record of over $10.5 billion deployed across more than 375 transactions and over 200 unique private equity sponsors since inception. Stellus is headquartered in Houston, TX with offices in the Washington, D.C. area and Charlotte, NC. Learn more at www.stelluscapital.com.
1 Includes target leverage, capital commitments to SCF IV and investor-specific vehicles, and $225 million of discretionary capital from an existing investor.
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SOURCE Stellus Capital Management, LLC