Stellus Capital Management to Be Acquired by Alternative Asset Manager P10
Stellus Private Credit BDC, a private placement business development company focused on middle-market debt strategies, announced that the majority owner of its adviser, Stellus Capital Management, has entered into a definitive agreement to be acquired by P10 Inc. (NYSE: PX), a private markets solutions provider that similarly serves the lower-middle market.
Stellus Capital Management is a private credit and direct lending firm specializing in providing senior secured loans to lower middle market companies. According to the company, it will continue to be managed by its current partners who will retain control of its day-to-day operations, including investment decisions and investment committee processes.
Stellus Private Credit BDC is registered under the Investment Company Act of 1940 and invests primarily in senior secured loans to U.S. lower middle-market companies. As of Sept. 30, 2025, the BDC reported total assets of $384.8 million and net assets of $188.8 million, with a net asset value of $15.26 per share, up from $15.16 at year-end 2024.
The BDC’s investment portfolio totaled approximately $376.4 million at fair value at quarter-end and was diversified across more than 100 portfolio companies. First-lien senior secured debt represented the majority of the portfolio, and qualifying assets accounted for approximately 93.8% of total assets, according to the filing.
For the nine months ended Sept. 30, 2025, Stellus Private Credit BDC generated net investment income of $10.9 million, or $1.00 per share, and paid total distributions of $1.10 per share. The BDC had approximately 12.37 million shares outstanding at quarter-end.
P10, which has more than $40 billion in assets under management, operates a multi-strategy platform focused on the middle and lower-middle market. Stellus Capital noted that it views P10 as the preferred strategic partner based on its operating model and complementary expertise and relationships. P10’s sponsor network is expected to broaden access to direct lending opportunities for Stellus’ clients, while preserving the firm’s core investing philosophy and approach.
“Luke Sarsfield and the P10 team have established a highly scaled and diversified private markets platform with a clear focus on the middle and lower-middle market, and we see strong alignment in our respective approaches,” said Robert Ladd, managing partner of Stellus Capital.
“This transaction will enhance our ability to develop additional strategies and investment vehicles that meet the evolving needs of global investors seeking access to opportunities in our markets and those of sponsors and borrowers seeking a reliable, thoughtful lending partner. We look forward to working closely with the P10 team to support disciplined growth and long-term value creation for our clients,” added Ladd.
“This acquisition is a continuation of P10’s long-term strategy to partner with leading specialized investment managers operating in the middle and lower-middle market and adds a best-in-class direct lending franchise to our platform,” said Luke Sarsfield, chairman and chief executive officer of P10.
The transaction is expected to close in mid-2026, subject to BDC shareholder approvals and other customary closing conditions.
“Rob and his team have built a firm with a strong history of growth, proven track record of vehicle launches, and robust credit and investment performance across economic cycles. Further, Stellus’ sponsor borrower base is a natural fit within P10’s middle and lower-middle market GP sponsor ecosystem, creating the potential for new opportunities across the firm. With our shared philosophy of investment excellence, client outcomes, and long-term value creation, we look forward to Stellus joining our leading alternatives platform,” said Sarsfield.
Stellus Capital was founded in 2012 following a spin-out from the D. E. Shaw group’s direct capital unit. It manages several investment vehicles, including Stellus Private Credit BDC.
With a track record spanning more than 20 years, the Stellus Capital team has invested over $10.3 billion in 375+ portfolio companies and has approximately $3.8 billion in AUM, including $2.6 billion in fee-paying assets under management.
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