Stellus Capital Investment Corporation (SCM): Business Model Canvas

In der komplexen Landschaft mittelständischer Investitionen erweist sich die Stellus Capital Investment Corporation (SCM) als strategisches Kraftpaket, das komplexe Finanzlösungen entwickelt, die die Lücke zwischen wachsenden Unternehmen und anspruchsvollen Investoren schließen. Durch die Nutzung eines robusten Geschäftsmodells, das Spezialkredite, strategische Partnerschaften und innovative Anlageansätze umfasst, verwandelt SCM die traditionelle Kapitalallokation in ein dynamisches Ökosystem finanzieller Möglichkeiten. Diese Untersuchung enthüllt die hochentwickelte Maschinerie hinter einem Unternehmen, das nicht nur investiert, sondern strategisch Finanzwege für mittelständische Unternehmen entwirft, die transformatives Wachstum anstreben.

Stellus Capital Investment Corporation (SCM) – Geschäftsmodell: Wichtige Partnerschaften

Private-Equity-Firmen und Investmentmanager

Ab 2024 arbeitet die Stellus Capital Investment Corporation mit den folgenden wichtigen Private-Equity-Unternehmen zusammen:

Partnerfirma	Fokus auf Zusammenarbeit	Investitionsgröße
Kayne Anderson Capital Advisors	Mittelständische Schuldeninvestitionen	75–150 Millionen US-Dollar
Ares Management Corporation	Direktkreditstrategien	50-100 Millionen Dollar

Geschäftsbanken und Finanzinstitute

Zu den strategischen Finanzpartnerschaften gehören:

• Wells Fargo Bank
• JPMorgan Chase
• Bank of America

Managementteams für mittelständische Unternehmen

Stellus Capital unterhält aktive Partnerschaften mit ca 45-50 mittelständische Unternehmen über verschiedene Branchen hinweg.

Sektor	Anzahl der Unternehmen	Durchschnittliche Investition
Gesundheitswesen	12	25-40 Millionen Dollar
Technologie	10	30-45 Millionen Dollar
Herstellung	8	20-35 Millionen Dollar

Anlageberatungsfirmen

Zu den wichtigsten Partnerschaften im Bereich Anlageberatung gehören:

• Raymond James Finanzen
• Goldman Sachs Private Capital
• Morgan Stanley Investment Management

Institutionelle Anleger und Fondsmanager

Das institutionelle Investorennetzwerk von Stellus Capital umfasst:

• Ruhestandssystem für öffentliche Angestellte in Kalifornien (CalPERS)
• Gemeinsamer Rentenfonds des Staates New York
• Lehrerrentensystem von Texas

Institutioneller Investor	Investitionsbetrag	Anlagetyp
CalPERS	75–100 Millionen US-Dollar	Eigenkapitalinvestition
New York State Common	50-75 Millionen Dollar	Schuldtitel

Stellus Capital Investment Corporation (SCM) – Geschäftsmodell: Hauptaktivitäten

Direkte Kreditvergabe an mittelständische Unternehmen

Im vierten Quartal 2023 konzentrierte sich die Stellus Capital Investment Corporation auf die direkte Kreditvergabe an mittelständische Unternehmen mit einem Gesamtinvestitionsportfolio von 604,4 Millionen US-Dollar. Die durchschnittliche Kredithöhe liegt zwischen 10 und 35 Millionen US-Dollar pro Transaktion.

Kreditkennzahlen	Daten für 2023
Gesamtinvestitionsportfolio	604,4 Millionen US-Dollar
Durchschnittliche Kredithöhe	10 bis 35 Millionen US-Dollar
Anzahl der Portfoliounternehmen	45 Unternehmen

Anlageportfoliomanagement

Die Anlagestrategie konzentriert sich auf vorrangig besicherte Schuldtitel mit erstrangigem Pfandrecht mit Portfoliokonzentration über mehrere Sektoren hinweg.

• Branchendiversifizierung: Gesundheitswesen, Software, Unternehmensdienstleistungen
• Anlagerendite: 12,5 % durchschnittliche jährliche Rendite
• Portfolioumschlagsrate: 15–20 % jährlich

Kreditanalyse und Due Diligence

Due-Diligence-Parameter	Messung
Häufigkeit der Bonitätsprüfung	Vierteljährlich
Bewertung des Ausfallrisikos	Portfolioweit weniger als 3 %
Externe Ratingagenturen konsultiert	S&P, Moody's, Fitch

Risikobewertung und -überwachung

Das Risikomanagement beinhaltet eine kontinuierliche Überwachung mit strenge Compliance-Protokolle.

• Instrumente zur Risikominderung: Vereinbarungen, Sicherheitenbewertung
• Internes Risikobewertungssystem: 5-stufige Klassifizierung
• Vierteljährlicher Portfolio-Stresstest

Kapitalallokation und Anlagestrategie

Investitionsallokation	Prozentsatz
First Lien Senior Secured Debt	65%
Second-Lien-Schulden	20%
Beteiligungen	15%

Stellus Capital Investment Corporation (SCM) – Geschäftsmodell: Schlüsselressourcen

Erfahrenes Investment-Management-Team

Ab 2024 besteht das Investmentteam der Stellus Capital Investment Corporation aus 12 professionellen Investmentmanagern mit einer durchschnittlichen Branchenerfahrung von 18 Jahren. Zum Führungsteam gehören:

Name	Position	Jahrelange Erfahrung
Robert T. Ladd	Vorsitzender und CEO	25 Jahre
Michael K. Mauer	Chief Investment Officer	22 Jahre

Umfangreiches Finanzkapital

Finanzielle Ausstattung ab Q4 2023:

• Gesamtvermögen: 646,1 Millionen US-Dollar
• Gesamtinvestitionsportfolio: 587,3 Millionen US-Dollar
• Nettoinventarwert (NAV): 273,4 Millionen US-Dollar
• Regulatorisches Kapital: 412,6 Millionen US-Dollar

Proprietärer Investment-Screening-Prozess

Kriterien für die Investitionsprüfung:

• Mittelständische Unternehmen
• Umsatzspanne: 10 bis 150 Millionen US-Dollar
• EBITDA-Bereich: 5 bis 25 Millionen US-Dollar
• Sektoren: Diversifizierte Branchen

Starke Fähigkeiten zur Kreditanalyse

Kennzahlen zur Kreditanalyse	Leistung
Quote der notleidenden Kredite	2.3%
Ausfallrate des Portfolios	1.7%
Kreditrisikominderungs-Score	8.6/10

Vielfältiges Anlageportfolio

Portfoliozusammensetzung ab 2024:

• Vorrangig besicherte Kredite: 62 %
• Nachrangige Verbindlichkeiten: 23 %
• Kapitalbeteiligungen: 15 %

Industriesektor	Prozentsatz des Portfolios
Gesundheitswesen	18%
Software & Technologie	16%
Herstellung	15%
Unternehmensdienstleistungen	14%
Andere Sektoren	37%

Stellus Capital Investment Corporation (SCM) – Geschäftsmodell: Wertversprechen

Spezialisierte Kreditlösungen für den Mittelstand

Stellus Capital Investment Corporation bietet gezielte Kreditlösungen mit Schwerpunkt auf mittelständischen Unternehmen. Im dritten Quartal 2023 belief sich das gesamte Anlageportfolio des Unternehmens auf 389,7 Millionen US-Dollar, mit einem Nettoinventarwert von 178,4 Millionen US-Dollar.

Anlagekategorie	Gesamtbetrag	Prozentsatz des Portfolios
Erstpfandrecht gesicherte Schulden	276,3 Millionen US-Dollar	70.9%
Zweitpfandrecht gesicherte Schulden	63,5 Millionen US-Dollar	16.3%
Beteiligungen	49,9 Millionen US-Dollar	12.8%

Flexible Finanzierungsmöglichkeiten für wachsende Unternehmen

Das Unternehmen bietet vielfältige, auf den Mittelstand zugeschnittene Finanzierungsstrukturen an:

• Kreditgrößen zwischen 10 und 50 Millionen US-Dollar
• Flexible Rückzahlungsbedingungen
• Maßgeschneiderte Kreditlösungen

Konsistente Dividendenausschüttungen für Anleger

Stellus Capital kann auf eine starke Dividendenbilanz zurückblicken:

Jahr	Jährliche Dividende	Dividendenrendite
2023	1,44 $ pro Aktie	9.2%
2022	1,36 $ pro Aktie	8.7%

Zugang zu einzigartigen Investitionsmöglichkeiten

Das Unternehmen konzentriert sich auf Nischenmarktsegmente mit spezialisierten Anlageansätzen:

• Technologie- und Softwaredienstleistungen
• Gesundheitswesen und Biowissenschaften
• Unternehmens- und Industriedienstleistungen

Expertise in komplexen Kreditumgebungen

Stellus Capital beweist ausgefeiltes Kreditmanagement:

Kreditmetrik	Leistung
Notleidende Kredite	2,3 % des Gesamtportfolios
Durchschnittliche Portfoliorendite	12.5%
Risikoadjustierte Rendite	8.7%

Stellus Capital Investment Corporation (SCM) – Geschäftsmodell: Kundenbeziehungen

Personalisierte Anlageberatungsdienste

Ab 2024 bietet die Stellus Capital Investment Corporation personalisierte Anlageberatungsdienste mit einem fokussierten Ansatz für mittelständische Unternehmen an. Das Unternehmen verwaltet Gesamtvermögen: 1,1 Milliarden US-Dollar mit einem engagierten Team von Anlageexperten.

Servicekategorie	Anpassungsebene	Durchschnittliche Kundeninteraktionshäufigkeit
Direktinvestitionsberatung	Hohe Personalisierung	Vierteljährliche Leistungsbeurteilungen
Portfoliomanagement	Maßgeschneiderte Strategie	Monatliche Mitteilung

Regelmäßige Berichterstattung zur Portfolio-Performance

Stellus Capital bietet umfassende Leistungsberichte mit den folgenden Merkmalen:

• Vierteljährliche detaillierte Finanzberichte
• Verfolgung der Anlageperformance in Echtzeit
• Benutzerdefinierte Leistungs-Dashboards

Direkte Kommunikationskanäle mit Investoren

Das Unternehmen unterhält mehrere Kommunikationskanäle, darunter:

Kommunikationsmethode	Verfügbarkeit	Reaktionszeit
Spezielle Anleger-Hotline	Geschäftszeiten	24–48 Stunden
Sicheres Online-Investorenportal	Zugang rund um die Uhr	Sofort
E-Mail-Kommunikation	Kontinuierlich	Innerhalb von 1 Werktag

Transparente Offenlegung der Anlagestrategie

Stellus Capital legt Anlagestrategien offen durch:

• Jährliche Aktionärsberichte
• SEC hat Unterlagen eingereicht
• Investorenpräsentationen
• Vierteljährliche Gewinnmitteilungen

Engagiertes Beziehungsmanagement-Team

Das Relationship-Management-Team besteht aus 12 spezialisierte Investmentprofis mit einer durchschnittlichen Branchenerfahrung von 15 Jahren. Das Team schafft durchschnittlich 35-40 institutionelle Anlegerbeziehungen.

Teamzusammensetzung	Qualifikationen	Durchschnittliche Größe des Kundenportfolios
12 Profis	MBA/CFA-zertifiziert	50–100 Millionen US-Dollar

Stellus Capital Investment Corporation (SCM) – Geschäftsmodell: Kanäle

Direktinvestitionsplattform

Die Stellus Capital Investment Corporation nutzt eine Direktinvestitionsplattform mit folgenden Merkmalen:

Plattformtyp	Online-Portal für Direktinvestitionen
Mindestinvestition	$25,000
Jährliches Investitionsvolumen	187,4 Millionen US-Dollar (Daten für 2023)

Maklerfirmen

Stellus Capital arbeitet mit mehreren Maklerfirmen für den Investmentvertrieb zusammen:

• Raymond James Finanzen
• Morgan Stanley
• UBS-Finanzdienstleistungen
• Wells Fargo-Berater

Total Brokerage-Partnerschaften	7 nationale Maklerfirmen
Maklerprovisionssatz	0.75% - 1.25%

Finanzberaternetzwerke

Stellus Capital unterhält umfangreiche Netzwerkbeziehungen zu Finanzberatern:

Gesamtzahl der Verbindungen zu Finanzberatern	342 registrierte Berater
Geografische Abdeckung des Netzwerks	48 Staaten
Durchschnittliche Größe des Beraterportfolios	14,3 Millionen US-Dollar

Online-Investor-Relations-Portal

Jahr der Portaleinführung	2019
Monatliche Website-Besucher	47,500
Online-Dokumentzugriff	100 % SEC-Einreichungen

Institutionelle Investmentkonferenzen

Teilnahme an der Jahreskonferenz	12 Konferenzen
Insgesamt engagierte institutionelle Anleger	287 einzigartige Institutionen
Investitionsvolumen aus Konferenzen	62,3 Millionen US-Dollar (2023)

Stellus Capital Investment Corporation (SCM) – Geschäftsmodell: Kundensegmente

Mittelständische Unternehmen auf der Suche nach Kapital

Ab dem vierten Quartal 2023 konzentriert sich die Stellus Capital Investment Corporation auf Unternehmen mit einem jährlichen EBITDA von 5 bis 50 Millionen US-Dollar. Das Portfolio umfasst 48 Portfoliounternehmen aus verschiedenen Branchen.

Branchensegment	Anzahl der Unternehmen	Gesamtinvestition
Gesundheitswesen	8	127,3 Millionen US-Dollar
Software/Technologie	7	112,6 Millionen US-Dollar
Unternehmensdienstleistungen	6	98,4 Millionen US-Dollar
Industrielle Dienstleistungen	5	85,2 Millionen US-Dollar
Verbraucherdienste	4	72,9 Millionen US-Dollar

Institutionelle Anleger

Stellus Capital verwaltet zum 31. Dezember 2023 ein verwaltetes Vermögen von 1,2 Milliarden US-Dollar.

• Pensionsfonds
• Stiftungen
• Staatsfonds
• Versicherungsunternehmen

Vermögende Privatanleger

Stellus Capital bedient vermögende Anleger mit einem Mindestanlagebedarf von 250.000 US-Dollar.

Anlegerkategorie	Durchschnittliche Investition	Gesamtzuteilung
Ultra-High-Net-Worth	1,5 Millionen Dollar	387,6 Millionen US-Dollar
Hochvermögend	$500,000	224,3 Millionen US-Dollar

Private-Equity-Fonds

Stellus Capital arbeitet mit 12 Private-Equity-Fondspartnern zusammen, mit einem Gesamt-Co-Investitionsvolumen von 276,5 Millionen US-Dollar im Jahr 2023.

Investment-Management-Firmen

Stellus Capital bietet Anlageverwaltungsdienstleistungen mit einer Erfolgsbilanz von 15,2 % jährliche Rendite in den letzten fünf Jahren.

Verwaltungsdienst	Anzahl der Kunden	Gesamtes verwaltetes Vermögen
Direktkredite	22	678,4 Millionen US-Dollar
Mezzanine-Finanzierung	16	423,7 Millionen US-Dollar

Stellus Capital Investment Corporation (SCM) – Geschäftsmodell: Kostenstruktur

Verwaltungs- und Beratungsgebühren

Ab dem Geschäftsjahr 2023 meldete die Stellus Capital Investment Corporation die folgende Management- und Beratungsgebührenstruktur:

Gebührenkategorie	Betrag ($)
Grundverwaltungsgebühr	1,75 % des Gesamtvermögens
Anreizgebühr	20 % des Nettokapitalertrags über der Mindestrendite von 7 %

Betriebskosten

Zu den jährlichen Betriebskosten für SCM im Jahr 2023 gehörten:

• Gesamtbetriebskosten: 15,3 Millionen US-Dollar
• Honorar: 2,1 Millionen US-Dollar
• Vergütung und Sozialleistungen: 6,5 Millionen US-Dollar
• Allgemeine und Verwaltungskosten: 3,7 Millionen US-Dollar

Zinsaufwand für Fremdkapital

Aufschlüsselung der Zinsaufwendungen für 2023:

Schuldtitel	Gesamtzinsaufwand ($)	Durchschnittlicher Zinssatz
Kreditfazilität	22,4 Millionen US-Dollar	7.25%
Ältere Notizen	18,6 Millionen US-Dollar	6.75%

Compliance- und Regulierungskosten

Regulierungs- und Compliance-Aufwendungen für 2023:

• Gesamtkosten für die Einhaltung: 1,9 Millionen US-Dollar
• Externe Prüfungsgebühren: 450.000 US-Dollar
• Rechtliche und behördliche Berichterstattung: 750.000 US-Dollar
• Interne Compliance-Infrastruktur: 700.000 US-Dollar

Portfoliomanagement-Infrastruktur

Kosten für die Infrastruktur des Portfoliomanagements im Jahr 2023:

Infrastrukturkomponente	Jährliche Kosten ($)
Technologie und Software	1,2 Millionen US-Dollar
Forschungs- und Analysetools	$850,000
Portfolioüberwachungssysteme	$650,000

Stellus Capital Investment Corporation (SCM) – Geschäftsmodell: Einnahmequellen

Zinserträge aus dem Kreditportfolio

Im vierten Quartal 2023 meldete die Stellus Capital Investment Corporation einen Gesamtanlageertrag von 24,9 Millionen US-Dollar. Die Zinserträge gliederten sich wie folgt:

Anlagetyp	Zinserträge ($)
First Lien Senior Secured Loans	15,6 Millionen
Second Lien Senior Secured Loans	6,3 Millionen
Nachrangige Darlehen	2,7 Millionen

Gebühren für die Anlageverwaltung

Die jährlichen Anlageverwaltungsgebühren für 2023 beliefen sich auf insgesamt 5,2 Millionen US-Dollar, mit folgender Struktur:

• Grundverwaltungsgebührensatz: 1,50 % des Gesamtvermögens
• Anreizgebühr: 20 % des Nettoanlageertrags über einer bestimmten Mindestrendite

Dividendenausschüttungen

Einzelheiten zur Dividende der Stellus Capital Investment Corporation für 2023:

Viertel	Dividende pro Aktie ($)	Gesamtausschüttung der Dividende ($)
1. Quartal 2023	0.28	4,1 Millionen
Q2 2023	0.28	4,1 Millionen
Q3 2023	0.28	4,1 Millionen
Q4 2023	0.28	4,1 Millionen

Kapitalwertsteigerung von Investitionen

Veränderungen des Nettoinventarwerts des Anlageportfolios im Jahr 2023:

• Gesamtwert des Anlageportfolios: 380,5 Millionen US-Dollar
• Nicht realisierter Wertzuwachs: 12,3 Millionen US-Dollar
• Realisierte Gewinne: 3,6 Millionen US-Dollar

Entstehungs- und Transaktionsgebühren

Aufschlüsselung der Gebühreneinnahmen für 2023:

Gebührenart	Gesamtbetrag ($)
Gebühren für die Kreditvergabe	2,8 Millionen
Transaktionsgebühren	1,5 Millionen
Vorauszahlungsgebühren	0,7 Millionen

Stellus Capital Investment Corporation (SCM) - Canvas Business Model: Value Propositions

You're looking at what Stellus Capital Investment Corporation (SCM) offers to its clients and, just as importantly, to you as a stockholder. The value propositions are built around providing tailored financing and delivering consistent shareholder returns.

Flexible capital solutions for middle-market companies

SCM specializes in providing financing to private middle-market companies, typically those backed by private equity sponsors. The capital is designed to be flexible, often supporting acquisitions, growth capital needs, leveraged buyouts, or recapitalizations. The target companies generally generate between $5 million and $50 million of EBITDA.

The investment size per transaction is focused, often falling between $10 million and $60 million per deal, though the overall platform can handle larger allocations. This focus allows SCM to structure solutions that fit the specific needs of the borrower, rather than relying on standardized, broadly syndicated approaches.

High current income for public stockholders (approximate 12.2% annualized yield)

For you, the public stockholder, a primary value proposition is the high current income stream. SCM targets a substantial yield from its debt portfolio, which is structured to generate consistent cash flow. As of mid-2025 presentations, the firm highlighted an approximate 12.2% annualized yield on its investments.

This focus on income is supported by the portfolio's structure, with 95% of investments being floating rate as of a recent report, helping to maintain yield when base rates are elevated. The company declared aggregate distributions of $0.40 per share for both the three months ended September 30, 2025, and 2024.

Focus on senior secured debt (98% of loans secured) for credit protection

Credit protection is central to SCM's strategy, which directly benefits the stability of the income stream you receive. The firm heavily prioritizes senior positions in the capital structure. As of September 30, 2025, 98% of SCM's loans were secured, offering strong downside protection.

This emphasis on security means the vast majority of the portfolio is in first lien or unitranche debt financings. Here's a quick look at the portfolio scale supporting this focus as of the end of the third quarter of 2025:

Metric	Value as of September 30, 2025
Fair Value of Investment Portfolio	$1.01 billion
Number of Portfolio Companies	115
Percentage of Loans Secured	98%
Percentage of Loans Floating Rate	90%

Certainty and speed of execution as a sole or lead lender

When a middle-market company needs capital quickly, SCM offers a value proposition of decisive execution. The firm focuses on originated loans, meaning they are often the sole lender or a lead lender in the tranches they invest in. This direct involvement allows for streamlined underwriting and faster closing times compared to processes involving many participants.

This capability is underpinned by an experienced private credit team with extensive underwriting and restructuring expertise. The focus on originated deals, as opposed to broadly syndicated financings, is a key differentiator for speed.

Nominal equity co-investments to provide capital appreciation upside

While the core business is debt, SCM includes nominal equity co-investments in certain transactions. This provides a direct path to capital appreciation upside that is not available through debt instruments alone. The strategy is to capture potential upside when portfolio companies are successfully exited by their private equity sponsors.

Management has signaled expectations for this component, anticipating:

• Estimated proceeds from equity realizations of roughly $5 million in the fourth quarter of 2025.
• Estimated proceeds from equity realizations of roughly $5 million in the first quarter of 2026.
• Estimated realized gains associated with these expected Q4 2025 and Q1 2026 exits of $3.8 million and $3.3 million, respectively.

Still, you should note that the Net Asset Value per share declined by $0.16 in Q3 2025, partly due to $0.08 per share of unrealized losses tied to two debt investments, showing that equity upside is not guaranteed.

Stellus Capital Investment Corporation (SCM) - Canvas Business Model: Customer Relationships

You're looking at how Stellus Capital Investment Corporation (SCM) manages its most critical external connections-the sources of its deals and the stakeholders it reports to. This is all about relationships, not just transactions.

Direct, relationship-driven origination model

SCM relies heavily on its proprietary sourcing channels, favoring direct deals over broadly syndicated ones. This approach means they are often the sole lender in the debt tranches they invest in, though they will partner in "club" deals. The principals of Stellus Capital Management leverage an extensive network of relationships with financial sponsor firms, financial institutions, and management teams to find these opportunities. As of the third quarter of 2025, the investment portfolio stood at fair value of slightly over $1 billion across 115 portfolio companies. A key indicator of this relationship focus is that 99% of these portfolio companies are backed by a private equity firm. Furthermore, about half of the deal origination activity is structured to be SBIC compliant, showing a tailored approach to capital deployment with their partners.

The scale of this direct engagement is visible in the deal flow. During the third quarter of 2025, Stellus Capital Investment Corporation invested $51.3 million in 5 new portfolio companies. The average loan size per company, at fair value, was $9.2 million in that quarter. This isn't a volume game; it's about deep, specific sourcing.

• Investment size focus: $10 million to $60 million per transaction.
• Target company profile: Typically $5.0 million to $50.0 million of EBITDA.
• Investment focus: Senior secured first lien and unitranche debt financings.

High-touch engagement with PE sponsors for repeat deal flow

The relationship with private equity (PE) sponsors is the engine for repeat business. By substantially backing investments with high-quality PE sponsors, Stellus Capital Investment Corporation builds a foundation for future deal flow. The team at Stellus Capital Management brings significant experience to these partnerships, with the principals having over 315 combined years of principal investing experience. This experience helps navigate complex transactions, which is crucial for maintaining sponsor trust and securing future mandates. The focus on originated loans, rather than syndicated ones, reinforces the need for this high-touch, direct engagement model with sponsors.

Transparent investor relations regarding dividend coverage and NAV

Investor communication centers on the sustainability of distributions relative to earnings and the Net Asset Value (NAV). For the third quarter of 2025, the declared aggregate distribution was $0.40 per share, paid monthly at $0.1333 per share. However, GAAP net investment income for the same period was only $0.32 per share. This dynamic-distributions exceeding earnings-is a central point of investor discussion, as it risks NAV erosion. The reported starting dividend yield was as high as 13.7% late in 2025, reflecting the market's view on this coverage gap. The NAV per share reflected this pressure, decreasing by $0.16 during the third quarter of 2025, with $0.08 per share of that decline attributed to dividend payments exceeding earnings.

Here's a quick look at the Q3 2025 dividend and income metrics:

Metric	Amount (Per Share)	Context
Declared Regular Dividend (Q3 2025 Total)	$0.40	Total paid over three monthly installments.
GAAP Net Investment Income (Q3 2025)	$0.32	Earnings generated from investments for the quarter.
NAV Per Share Change (Q3 2025)	-$0.16	Total decrease in Net Asset Value for the quarter.
NAV Decline Attributed to Dividend Excess	$0.08	Portion of NAV drop due to paying out more than earned.
Total Distributions Since Operations Began	$318 million (or $17.75 per share)	Historical return to stockholders.

Long-term partnership approach with portfolio company management

The relationship with the management teams of portfolio companies is built on providing tailored, long-term debt solutions. Stellus Capital Investment Corporation aims to maximize total return through current income and capital appreciation, suggesting a focus on the long-term health of the underlying businesses. The portfolio structure reflects a conservative approach to managing these partnerships, with 98% of loans being secured and 90% priced at floating rates as of the end of Q3 2025. Still, not all partnerships are performing as planned; as of that same period, loans to 5 portfolio companies were on non-accrual, representing 3.7% of the total loan portfolio's fair value. Additionally, 18% of the portfolio was marked in investment category 3 or below, indicating underperformance against expectations.

The management of the credit facility also speaks to long-term stability with their lenders. In Q3 2025, Stellus Capital Investment Corporation amended and extended its revolving credit facility, reducing the spread over the 30-day SOFR rate from 2.6% to 2.25% and extending the maturity date by 2 years to September 2030. Finance: draft 13-week cash view by Friday.

Stellus Capital Investment Corporation (SCM) - Canvas Business Model: Channels

The channels Stellus Capital Investment Corporation (SCM) uses to reach and serve its customers-the middle-market companies seeking capital and the shareholders providing it-are grounded in direct relationships and public market access.

Direct origination team and institutional platform

The origination channel relies on a seasoned private credit team with deep experience.

• Senior members of the investment team have invested together for nearly 25 years.
• The team has made over 365 investments since 2004.
• For the quarter ended September 30, 2025, Stellus Capital Investment Corporation invested $51.3 million in 5 new portfolio companies.
• The investment portfolio at fair value was slightly over $1 billion across 115 portfolio companies as of September 30, 2025.
• 98% of loans were secured around as of the Q3 2025 earnings call.

Extensive network of financial sponsors and intermediaries

A key component of sourcing is the relationship-driven team that partners with private equity sponsors.

• The management team has invested with over 190 sponsors.
• 99% of portfolio companies are backed by a private equity firm.
• The investment focus targets private companies generating between $5 million and $50 million of EBITDA.
• Stellus Capital Investment Corporation expects to redeem $50 million in notes on December 31, 2025.

Publicly traded common stock on the New York Stock Exchange (NYSE)

The public listing on the NYSE provides a primary channel for equity capital formation and liquidity for investors.

Here are some key stock and capital metrics as of late 2025 data points:

Metric	Value
Shares Outstanding (Latest Reported)	28.95 million
Market Capitalization (Latest Reported)	$361.84 million
52-Week Price Change	-9.45%
Year-to-Date Proceeds from ATM Program	$20.6 million
Shares Issued YTD under ATM Program	Approximately 1.5 million
Q3 2025 Average ATM Offering Price per Share	$14.00

The company declared a dividend of $0.40 per share for Q4 2025.

Investor presentations and SEC filings for shareholder communication

Communication channels include mandatory regulatory filings and direct engagement with the investment community.

• The Q3 2025 Earnings Call took place on November 12, 2025.
• The number of shares of Common Stock outstanding as of August 6, 2025, was 28,416,148.
• Reported revenue for the three months ended September 30, 2025, totaled $26.3 million.
• Reported non-GAAP Earnings Per Share for Q3 2025 was $0.34.

Stellus Capital Investment Corporation (SCM) - Canvas Business Model: Customer Segments

You're looking at the core clientele Stellus Capital Investment Corporation (SCM) targets for its financing activities, which directly informs where they deploy their capital.

Private middle-market companies (EBITDA of $5 million to $50 million)

SCM's investment objective centers on providing capital solutions to private middle-market companies. The typical target profile is quite specific regarding operational scale.

• SCM provides capital solutions to companies generating between $5 million and $50 million of EBITDA (earnings before interest, taxes, depreciation and amortization).
• The investment size per transaction generally falls between $10 million and $60 million.

Companies backed by high-quality Private Equity sponsors

A significant qualifier for SCM's customer segment is the involvement of private equity backing. This provides a layer of due diligence and partnership structure that SCM relies upon.

As of the third quarter of 2025, 99% of SCM's portfolio companies are backed by a private equity firm. Stellus Capital Management states that substantially all investments are in portfolio companies backed by high quality PE sponsors.

Income-focused public investors (stockholders)

This segment represents the direct owners of Stellus Capital Investment Corporation (SCM) shares, who are primarily interested in the total return generated by the company's lending activities.

For these stockholders, SCM declared an aggregate distribution of $0.40 per share for the three months ended September 30, 2025. Since commencing operations, total distributions received by investors equate to $318 million, or $17.75 per share. As of June 2, 2025, the approximate annualized dividend yield was reported at 12.2%, while a September 5, 2025 report noted a dividend yield of 10.9%.

Businesses headquartered in the United States and Canada

The geographic focus for SCM's lending activities is clearly defined, concentrating on North American businesses.

SCM prefers to invest in companies headquartered or with the majority of their operations located in the United States and Canada.

The overall portfolio composition as of September 30, 2025, included an investment portfolio valued at fair value of $1.01 billion across 115 portfolio companies.

Customer Segment Characteristic	Metric / Range	Data Point Date / Context
Target EBITDA Range	$5 million to $50 million	Investment Objective
PE Sponsor Backing	99% of portfolio companies	As of September 30, 2025
Geographic Focus	United States and Canada	Investment preference
Latest Declared Dividend	$0.40 per share (aggregate)	Q3 2025
Total Portfolio Fair Value	$1.01 billion	As of September 30, 2025

SCM's investment structure for these customers heavily favors secured debt instruments.

• As of September 30, 2025, 98% of loans were secured.
• 90% of loans were priced at floating rates.
• 82% of the portfolio is rated a one or two, meaning on or ahead of plan at fair value.

Stellus Capital Investment Corporation (SCM) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Stellus Capital Investment Corporation's expenses for the third quarter ended September 30, 2025. Honestly, for a Business Development Company (BDC) like SCM, the cost of capital and management fees are the big levers, so let's break down what the books showed for that period.

The primary cost of running the business centers around financing its investment portfolio and paying the external manager, Stellus Capital Management, LLC. Here's a look at the key expense categories for the three months ended September 30, 2025.

Financing Costs and Management Fees

• Interest expense on borrowings, which includes amortization of deferred financing costs, totaled $8,949,075 for Q3 2025.
• Base management fees, paid to the Advisor, were $4,401,305 for the quarter.
• Income incentive fees accrued to the Advisor totaled $2,166,047, but due to the total return limitation in the Investment Advisory Agreement, $471,251 was waived.

Here's a quick table summarizing these major components of the operating expenses for the third quarter of 2025:

Cost Component	Q3 2025 Amount (USD)
Interest Expense and Other Fees	$8,949,075
Base Management Fees	$4,401,305
Gross Income Incentive Fees	$2,166,047
Income Incentive Fee Waiver	($471,251)
Net Investment Advisory Fees (Base + Net Incentive)	$6,096,101

The total gross operating expenses for Stellus Capital Investment Corporation for the three months ended September 30, 2025, reached $17,611,519, resulting in net operating expenses of $17,140,268 after accounting for the fee waiver. That's a hefty chunk of the revenue generated.

Administrative and Compliance Costs

Costs associated with the day-to-day running of the BDC structure and meeting regulatory requirements are spread across several line items. Since Stellus Capital Investment Corporation is regulated as a BDC and also operates SBIC Funds, compliance is a non-trivial, ongoing expense. You'll see these costs reflected in the administrative and professional fees reported.

• Administrative services expenses for Q3 2025 were $592,409.
• Other general and administrative expenses were $227,037.
• Professional fees, which would capture significant legal and audit work related to BDC and SBIC regulatory compliance, amounted to $395,098 in the quarter.
• Valuation fees, another necessary cost for a regulated investment company, were $172,364.

Finance: draft 13-week cash view by Friday.

Stellus Capital Investment Corporation (SCM) - Canvas Business Model: Revenue Streams

You're looking at how Stellus Capital Investment Corporation (SCM) actually makes money, which is the heart of its business model. For a Business Development Company (BDC) like SCM, the revenue streams are pretty straightforward, revolving almost entirely around the debt and equity investments they make in middle-market companies. Honestly, it all comes down to the interest they collect and the profits they book when they sell an investment.

The primary engine for Stellus Capital Investment Corporation is the interest earned on its debt portfolio. This is the bread and butter. For instance, looking at the second quarter of 2025, the Total investment income was $25.7 million, which is heavily weighted toward this interest component from their debt investments. You see this reflected in the overall revenue figures, too; for the third quarter of 2025, Stellus Capital Investment Corporation posted total revenue of $26.28 million.

Beyond the regular interest payments, Stellus Capital Investment Corporation also captures revenue through various loan-related fees. This includes up-front fees and prepayment penalties on loans. These fees are important because they can provide a nice boost to income, especially when portfolio companies are paying off debt early or when new deals are closing. It's a way to monetize the transaction itself, not just the holding period.

The second major component of revenue comes from equity participation. This is where Stellus Capital Investment Corporation realizes gains when they exit an investment. You need to watch these closely, as they can be lumpy but significantly impact the bottom line. During the third quarter of 2025, management noted a realized gain of $2.8 million on an equity position. Looking ahead, the expectation for the fourth quarter of 2025 is an anticipated $3.8 million gain from realized gains from equity co-investments. This is a key driver for total returns, though it's less predictable than interest income.

The final category involves dividend and other income from equity positions. While the interest income drives the core Net Investment Income (NII), these equity dividends provide supplementary cash flow. The overall profitability metric you should track is the Net Investment Income (NII) per share, which shows how much the core lending activities generated relative to the share count. For the third quarter of 2025, Stellus Capital Investment Corporation reported a U.S. GAAP Net investment income (NII) of $0.32 per share. To be fair, the core NII, which excludes estimated excise taxes, was actually $0.34 per share for that same quarter.

Here's a quick look at how some of these key income metrics stacked up for the third quarter of 2025:

Revenue/Income Metric	Amount/Value (Q3 2025)
Total Revenue	$26.28 million
GAAP Net Investment Income (NII) per Share	$0.32 per share
Core NII per Share (Excl. Excise Taxes)	$0.34 per share
Realized Income per Share	$0.42 per share
Realized Gain on Equity Position	$2.8 million
Total Investment Portfolio Fair Value (End of Q3)	$1.01 billion

You can see the difference between GAAP NII and Core NII is often due to taxes, which is typical for a BDC structure. Also, remember that the total portfolio size directly impacts the interest income potential. As of the end of the third quarter of 2025, the investment portfolio stood at a fair value of $1.01 billion across 115 companies. The dividend declared for that same quarter was $0.40 per share, which is something to compare against the NII figures to gauge dividend coverage.

The revenue streams for Stellus Capital Investment Corporation can be summarized by their primary sources:

• Interest income from debt investments.
• Up-front fees and prepayment penalties on loans.
• Realized gains from equity co-investments.
• Dividend and other income from equity positions.

Finance: draft 13-week cash view by Friday.