stelcapital.net

Navigating Lower Middle Market
Capital Solutions

Flexible capital for the middle market

EXPERIENCED

Stel's partner team has been working together for 19+ years and we have extensive principal investment experience, having deployed $850+ million in lower middle market credit and equity investments across multiple cycles and sectors, and delivering low loss ratios and strong returns for our investment partners.

STEADFASTSTEADFAST

The Stel team began investing in lower middle market companies 19+ years ago, when only a handful of players existed. Since then, many firms have entered and left the market. Stel remains focused on building long-lasting relationships and becoming a long-term partner to the businesses we support.

INCISIVE

Stel has extensive experience across credit, private equity, restructuring, and operations. Our deep experience in the lower middle market enables us to quickly evaluate new opportunities and remain a committed partner throughout the investment cycle, even through fluctuations in company performance or macroeconomic cycles.

EFFICIENT

Timeliness and reliability are key attributes for any capital partner. Our small and seasoned team avoids bureaucracy and facilitates an efficient underwriting process. As a result, we deliver quick and thoughtful feedback, certainty to close, and constructive engagement throughout the life of an investment.

Who are we?

Stel is a business development company (BDC) listed on the New York Stock Exchange. We provide innovative financing solutions to help you generate stable returns.

What do we offer?

We specialize in providing non-dilutive or limited-dilutive debt capital solutions to meet specific corporate financing needs.

Our approach

We use a relationship-driven approach, working closely with business owners and management to provide fast and flexible financing decisions, filling the gaps in traditional bank financing.

Investor Value

As a BDC, we are required to distribute substantially all of our taxable earnings to our shareholders with the intent of providing investors with a substantial, regular dividend income.

Companies with mid- to low-cap market capitalizations often face difficulties in obtaining financing. A precisely matched capital solution is crucial to resolving this problem.

Capital demand
matching

Loan execution
progress

Investment Type & Size

Investment size between $20 and $100 million per transaction.
Senior secured first lien, unitranche, split lien debt financings, and corresponding equity investments.
Underwriting capabilities up to $100 million.

Investment Focus

Private companies generating between $5 and $50 million of EBITDA.
Numerous industry sectors including: aerospace & defense, business services, consumer products & services, distribution, education, financial services, food & beverage, healthcare, industrial services, manufacturing, media & entertainment, software & technology, and telecommunications.
Capital is often used for acquisitions, growth capital, leveraged buyouts, and recapitalizations.

Origination Focus

Focus on originated loans, as opposed to broadly syndicated financings. Stellus is typically the sole lender in the tranches in which it invests. However, we are open to partnering with a small number of lenders in “club” deals.
Companies headquartered (or with a majority of their operations) in the United States and Canada.

Chris Miller

Capital Strategy Mentor

Maria

Executive Assistant

Call Anytime

EXPERIENCED

STEADFASTSTEADFAST

INCISIVE

EFFICIENT