Stellus Capital Management closed its latest offering with $1.8 billion of investable capital including target leverage, capital commitments to the fund, investor-specific vehicles and a newly launched private Business Development Company.
Stellus Credit Fund III (SCF III), like predecessor funds, is pursuing private credit opportunities that are originated and underwritten by Stellus across a diverse range of industries in the United States and Canada. Stellus drills down in direct lending investments in industries such as business services, consumer and retail, healthcare, industrials and media and technology.
The new evergreen BDC vehicle serves accredited investors directly and through their RIAs, investing parallel with other Stellus funds in the same middle market, direct lending strategy that the $2.6 billion firm has implemented over the last 18 years. Recently, iCapital announced a partnership with middle market direct lending specialist Stellus. The deal allows Stellus to offer its strategy while leveraging iCapital’s technology that allow firms to digitize the subscription, administration, operational and reporting processes.
“The overwhelming interest in SCF III and Stellus Private Credit BDC is a testament to our long-term track record of success and investors’ confidence in our understanding of this increasingly important marketplace,” said Robert Ladd, managing partner of Stellus. “With significant dry powder, we’re excited about the opportunity to utilize our robust origination capabilities, taking advantage of a strong private credit pipeline to provide investors with attractive risk-adjusted returns relative to other asset classes.”
SCF III has already invested in 36 portfolio companies, officials said. The fund is the successor to Stellus Credit Fund II, which closed in September 2018 at $478 million.
