Private markets heavyweight P10 is making a calculated move deeper into the lending arena. P10 to acquire Stellus Capital marks a $250 million bet on the growing middle and lower-middle market, a segment increasingly seen as the engine room of private credit.
P10, Inc. (NYSE: PX) announced Thursday that it has entered into a definitive agreement to purchase Stellus Capital Management LLC, a U.S.-based direct lender overseeing $3.8 billion in assets.
Deal Structure and Financing
The initial purchase price totals $250 million, split evenly between $125 million in cash and $125 million in P10 equity units. The cash portion will be financed through a combination of funds already on hand and borrowings from P10’s revolving credit facility.
The transaction is expected to close in mid-2026, pending customary conditions.
In pre-market trading on the New York Stock Exchange, P10 shares were down 1.43%, trading at $10.35.
Expanding Reach in the Lower-Middle Market
The acquisition underscores P10’s continued expansion across the middle and lower-middle market landscape. By adding Stellus’ platform, P10 aims to unlock new cross-platform opportunities and broaden access to direct lending strategies across its sponsor network.
Stellus specializes in senior secured loans within the lower-middle market — a niche that often flies under Wall Street’s radar but has become fertile ground for private credit managers seeking yield and resilience.
P10, which oversees more than $40 billion in assets under management, operates a multi-strategy private markets platform centered on similar market segments. The firm expects its sponsor relationships to enhance deal flow and capital access for Stellus’ clients.
