US direct lender Stellus Capital Management has announced the final close of Stellus Credit Fund IV (SCF IV), having hit its fundraising target, at approximately $1.5bn (£1.1bn) of investable capital.
The fundraising includes target leverage, capital commitments to SCF IV and investor-specific vehicles, and $225m of discretionary capital from an existing investor.
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The fund received commitments from both new and existing institutional and high-net-worth investors globally, such as public and private pension plans, insurance companies, foundations, family offices and global investment banks.
SCF IV closed on 1 April this year and has already invested in 44 portfolio companies.
Like its predecessor funds, including Stellus Credit Fund III, SCF IV is focused on identifying private credit opportunities, originated and underwritten by Stellus, across a range of industries in the US and Canada.
The $4bn direct lender, which specialises in senior secured, sponsor-backed loans in the lower middle market, recently entered into a definitive agreement to be acquired by private market solutions provider Ridgepost Capital, formerly P10.
Following the transaction, which is expected to close in mid-2026, Stellus will continue to be managed by its current partners, who will retain control of day-to-day operations, including investment decisions and investment committee processes.
“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,” said Robert T. Ladd, managing partner at Stellus Capital Management. “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.”
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