Stellus Capital Management provides investment strategies focused on direct credit investing, offering debt and equity capital to lower middle market businesses. Stellus manages investments for Stellus Capital Investment Corporation, a business development company, and private funds. Stellus can provide capital solutions up to $100 million for public and private entities.
Fee Structure
Stellus Capital Management manages investments for private funds and a business development company. The annual asset-based management fee for the private funds ranges between 0.5% and 2.0%, and performance-based fees range between 10% and 20% of realized net profits, calculated after investors receive their capital back plus a specific annual compounded rate of return. The business development company has a base management fee of 1.75% and an incentive payment of 20%.