Stellus Capital Management, a company in lower middle market direct lending, closed Stellus Credit Fund IV (SCF IV). The firm met its fundraising target with approximately $1.5 billion of investable capital. SCF IV, the successor to Stellus Credit Fund III, closed on April 1, 2026, and has already invested in 44 portfolio companies.
Similar to its predecessor funds, SCF IV is focused on identifying and pursuing private credit opportunities, originated and underwritten by Stellus, across a diverse range of industries in the United States and Canada.
SCF IV received commitments from new and existing institutional and high-net-worth investors globally, including leading public and private pension plans, insurance companies, foundations, family offices, global investment banks, consultants and other institutional investors.
Stellus recently entered into a definitive agreement to be acquired by Ridgepost Capital, with the transaction 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,” Robert T. Ladd, managing partner at Stellus Capital Management, said. “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.”