Stellus Capital Management announced the final close of Stellus Credit Fund IV (SCF IV), with the firm reaching its fundraising target and securing approximately $1.5 billion of investable capital. SCF IV is the successor to Stellus Credit Fund III and officially closed on April 1, 2026. The fund has already invested in 44 portfolio companies.
SCF IV is focused on sourcing and underwriting private credit opportunities across a broad range of industries throughout the United States and Canada. Similar to Stellus’ prior funds, the strategy centers on lower middle market direct lending opportunities originated internally by the firm.
The fund attracted commitments from both new and existing institutional and high-net-worth investors globally. Investors included public and private pension plans, insurance companies, foundations, family offices, investment banks, consultants, and other institutional allocators.
The announcement comes shortly after Stellus revealed that it entered into a definitive agreement to be acquired by Ridgepost Capital. The transaction is expected to close in mid-2026. Stellus said the firm will continue to be managed by its current partners, who will retain control over day-to-day operations, investment decisions, and investment committee processes following the transaction.
Founded within the D.E. Shaw Group in 2004, Stellus spun out as an independent firm in 2012. Today, the firm manages approximately $4 billion across multiple investment vehicles, including institutional funds, a public BDC, and a perpetual non-traded private BDC. Since inception, Stellus’ founding partners have deployed more than $10.5 billion across over 375 transactions and worked with more than 200 private equity sponsors.
KEY QUOTES:
“The response to SCF IV from both new and returning investors speaks to the strength of what our team has built over 22 years in lower middle market direct lending. As we look ahead to joining the Ridgepost platform, we remain as focused as ever on the disciplined, relationship-driven approach that has defined Stellus since our founding – and we are excited to put this capital to work on behalf of our investors.”
Robert T. Ladd, Managing Partner, Stellus Capital Management
