Stellus Capital Management originates debt and equity capital for lower middle-market and middle-market companies across the United States and Canada, targeting borrowers with $5 million to $50 million of EBITDA. The firm structures its credit offerings across senior secured first lien, unitranche, and split lien formats, frequently serving as sole lender within its tranches. Accompanying debt financings with equity co-investments allows the firm to align incentives and participate in portfolio upside.
The partner group brings 350+ years of collective principal investing experience and has operated together for over 20 years. This stability underpins the firm's positioning as a long-term capital partner, particularly to private equity-backed platforms seeking reliable, flexible financing through multiple market cycles. The firm's model emphasises speed and certainty in underwriting and closing, reducing execution risk for sponsors managing portfolio company refinancings or add-on acquisitions.
Stellus Capital Management serves as investment adviser to Stellus Capital Investment Corporation (NYSE: SCM), channelling capital across a diversified debt strategy that includes first lien, second lien, unitranche, and mezzanine instruments alongside corresponding equity positions. This structure provides the firm with scale and capital access while maintaining origination discipline focused on middle-market credit quality and sponsor-backed businesses.