Stellus Capital Management, a U.S. direct lender with $3.8 billion of AUM specializing in senior secured loans in the lower-middle market, entered into a definitive agreement to be acquired by P10, a private markets solutions provider that similarly serves the lower-middle market. Stellus 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.
“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,” Robert Ladd, managing partner of Stellus, said. “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.”
Luke Sarsfield, chairman and CEO of P10, said, “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. 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.”
The transaction is expected to close in mid-2026, subject to BDC shareholder approvals and other customary closing conditions.
Goldman Sachs is acting as exclusive financial advisor and Eversheds Sutherland (U.S.) and Winston & Strawn are serving as legal advisors to Stellus. Kirkland & Ellis and Troutman Pepper Locke are serving as legal advisors to P10.
