Stellus Capital Investment Corp: management transactions · United States · SEC (Form 4)

About Stellus Capital Investment Corp

Stellus Capital Investment Corporation (NYSE: SCM) is a U.S.-listed business development company (BDC) based in Houston, Texas. It is externally managed, meaning the operating and investment decisions are run through Stellus Capital Management rather than by an internal management team. Stellus Capital Management traces its origins to a January 2012 spin-out from the D. E. Shaw group’s direct capital business, which gives SCM a long-standing heritage in private credit and lower middle market lending. SCM’s core business is straightforward in concept but sophisticated in execution: it provides debt and equity-related financing to privately held middle-market companies in the United States. The company’s stated target borrower profile is typically businesses with EBITDA in the $5 million to $50 million range. Its investment toolkit includes first lien senior secured loans, second lien loans, unitranche structures, mezzanine debt, and, when appropriate, equity co-investments. That mix is designed to generate current income while preserving some upside from capital appreciation, which is central to the BDC model. From a market position standpoint, Stellus operates in the highly competitive U.S. direct lending and private credit arena. The firm emphasizes experience, sourcing reach, and a broad industry coverage set rather than trying to be a pure sector specialist. Its platform has historically been active across business services, consumer and retail, healthcare, industrials, and media/technology, reflecting a diversified approach to deal origination. For borrowers, Stellus offers an alternative to traditional bank lending; for investors, it offers exposure to privately originated credit with potentially attractive income characteristics. The company reports that its portfolio is built around privately negotiated credit investments, and management said the total portfolio stood at roughly $1.01 billion at fair value as of December 31, 2025. That scale suggests a meaningful but still focused footprint within the broader U.S. BDC universe. Recent company communications also highlighted a share repurchase program announced in 2026, which is relevant for capital allocation and may support per-share value if shares trade at a discount to net asset value. Another important recent development is strategic: in February 2026, Stellus Capital Management announced an agreement to be acquired by an affiliate of Ridgepost Capital / P10, with closing expected in mid-2026 subject to customary approvals. If completed, that transaction would change control of the external adviser and could lead to governance and contractual adjustments for SCM’s advisory arrangement. For investors, this is a material event to monitor alongside credit performance, portfolio yield, leverage, and the sensitivity of earnings to interest-rate conditions. In short, SCM is a U.S. NYSE-listed income-oriented credit vehicle with a seasoned management heritage, a middle-market lending focus, and a diversified private credit strategy tailored to the U.S. economy.