Stellus Capital
Stellus Capital Management is a Houston, Texas-based registered investment adviser that manages Stellus Capital Investment Corporation (NYSE: SCM), a publicly traded business development company focused on providing middle-market lending solutions. Founded in 2012, Stellus focuses on originating and managing senior secured loans, unitranche facilities, and mezzanine debt to private equity-backed and non-sponsored middle-market companies across multiple industries. The BDC structure provides individual investors with daily liquidity and transparent access to Stellus's middle-market private credit investment expertise.
Stellus Capital's investment strategy centers on providing flexible, relationship-driven financing solutions to lower and core middle-market businesses with EBITDA typically between $5 million and $50 million. The firm's credit approach emphasizes senior secured and unitranche structures that provide strong downside protection through structural seniority, collateral security, and covenant protections, while generating attractive floating-rate current income for investors. Stellus's industry-agnostic investment approach across sectors including healthcare, technology, business services, and industrials provides portfolio diversification and consistent deal flow across market conditions.
Stellus Capital Management has built a focused and credible presence in the BDC market as a direct lender to the lower and core middle market, serving retail investors who seek access to private credit returns through the transparency and liquidity of a publicly listed vehicle. The firm's consistent dividend track record, credit discipline, and relationship-focused approach to lending have built investor confidence in its ability to generate sustainable income across economic cycles. Stellus's Houston-based location provides proximity to a dynamic energy and business community that contributes meaningfully to its deal sourcing pipeline alongside its national lending presence.