Ridgepost Capital Closes $4B Stellus Capital Acquisition
Ridgepost Capital has finalized its purchase of Stellus Capital Management, a lower-middle-market direct lender overseeing roughly $4 billion in assets.
Ridgepost Capital, Inc. (NYSE: RPC) announced Monday it has closed its acquisition of Stellus Capital Management, LLC, a Dallas-based direct lender specializing in the lower-middle market with approximately $4 billion in assets under management, marking a significant expansion of Ridgepost's footprint in private credit.
The deal, which had been previously announced, adds a well-established lending platform to Ridgepost's portfolio at a moment when demand for non-bank financing among smaller companies continues to grow. Lower-middle-market firms — typically those with revenues well below the thresholds that attract large private equity sponsors — have increasingly turned to direct lenders like Stellus for flexible capital solutions.
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In a notable governance decision, Ridgepost confirmed that Stellus will retain its existing leadership structure. The current partners will continue to oversee day-to-day operations, including investment decisions and investment committee processes, a move designed to preserve continuity for portfolio companies and existing fund investors.
The arrangement reflects a broader trend in alternative asset management where acquirers prioritize keeping incumbent deal teams intact to protect relationships and performance track records. For Ridgepost, the transaction represents a direct play on the durable, fee-generating revenue streams that come with managing a multi-billion-dollar credit book.
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