Private markets solutions provider P10 is set to acquire US direct lender Stellus Capital Management, the companies have announced.
Stellus, a direct lender with $3.8bn (£2.8bn) of assets specialising in senior secured loans in the lower-middle market, has entered into a definitive agreement to be acquired by P10, which similarly serves the lower-middle market.
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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.
P10, which has more than $40bn in assets under management, operates a multi-strategy platform focused on the middle and lower-middle market. P10’s sponsor network is expected to broaden access to direct lending opportunities for the Stellus’ clients.
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“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,” said Robert Ladd, managing partner of Stellus.
“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.”
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