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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.

Stellus Leadership to Remain in Place

Despite the ownership change, Stellus will continue to be managed by its existing partners. The firm’s leadership will retain authority over day-to-day operations, including investment decisions and investment committee processes — a move designed to preserve continuity and underwriting discipline.

“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.

Ladd added that the transaction will strengthen Stellus’ ability to launch new strategies and investment vehicles, responding to global investor demand for targeted exposure in private credit markets. He also emphasized the firm’s ongoing commitment to serving sponsors and borrowers seeking a steady and considered lending partner.

As private credit continues to swell in scale and influence, P10’s move to acquire Stellus Capital signals not just consolidation — but ambition. In a market where capital flows like electricity through unseen wires, the firms are positioning themselves closer to the switchboard.