Stellus Capital Investment Corp
NYSE:SCM
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Stellus Capital Investment Corp
NYSE:SCM
|
US |
|
Abrdn PLC
LSE:ABDN
|
UK |
Stellus Capital Investment Corp
Stellus Capital Investment Corp., a traded business development company invests in companies located in the US with an EBITDA of $5 to $50 million. The company is headquartered in Houston, Texas and currently employs 0 full-time employees. The company went IPO on 2012-08-11. The firm originate and invest primarily in private middle-market through first lien, unitranche, second lien and unsecured debt financing, often with corresponding equity co-investments. Its investment objective is to maximize the total return to the Company's stockholders in the form of current income and capital appreciation. Its investment activities are managed by the Company’s investment adviser, Stellus Capital Management, an investment advisory firm led by Robert T. Ladd and its other senior investment professionals. Its source investments primarily through the network of relationships that the senior investment professionals of Stellus Capital Management have developed with financial sponsor firms, financial institutions, middle-market companies, management teams and other professional intermediaries.
Stellus Capital Investment Corp., a traded business development company invests in companies located in the US with an EBITDA of $5 to $50 million. The company is headquartered in Houston, Texas and currently employs 0 full-time employees. The company went IPO on 2012-08-11. The firm originate and invest primarily in private middle-market through first lien, unitranche, second lien and unsecured debt financing, often with corresponding equity co-investments. Its investment objective is to maximize the total return to the Company's stockholders in the form of current income and capital appreciation. Its investment activities are managed by the Company’s investment adviser, Stellus Capital Management, an investment advisory firm led by Robert T. Ladd and its other senior investment professionals. Its source investments primarily through the network of relationships that the senior investment professionals of Stellus Capital Management have developed with financial sponsor firms, financial institutions, middle-market companies, management teams and other professional intermediaries.
Dividend: Board declared a $0.34 per share quarterly dividend for Q1 2026 payable monthly and expects to keep it at $0.34 for Q2 (subject to Board approval).
Portfolio size: Portfolio fair value ended the quarter at $1.01 billion across 115 companies (later cited at ~ $996 million), with Q1 expected to finish at the current level or slightly lower.
Asset quality: 81% of the portfolio is rated a 1 or 2 (on or ahead of plan); 5 companies are on nonaccrual representing 7.5% of cost and 4.1% of fair value.
Software / AI exposure: No exposure to large-scale SaaS; five software-related loans represent 6.8% of the loan portfolio (largest position 1.8%) and are judged to be on or ahead of plan.
Capital actions: Board authorized up to $20 million share repurchase; adviser Stellus Capital Management agreed to be acquired by Ridgepost Capital (transaction expected mid-2026).
Financial results: GAAP net investment income was $0.29 per share for Q4; total realized income was $0.48 per share (including $5.5 million of realized gains).
SBA / leverage: Repaid $50 million of 2026 notes early; repaid $39 million of debentures on March 1 bringing total repaid to $65 million; target leverage unchanged (~1:1 regulatory, ~2:1 including SBIC debentures).
Outlook / opportunities: Management expects increased deal flow once adviser integration with Ridgepost closes and sees meaningful dry powder in lower middle market PE supporting future lending demand.
