Stellus Capital Investment Corporation (SCM): Business Model Canvas [Jan-2025 Mis à jour]

Dans le paysage complexe de l'investissement du marché intermédiaire, Stellus Capital Investment Corporation (SCM) apparaît comme une puissance stratégique, tissant des solutions financières complexes qui comblent l'écart entre les entreprises en croissance et les investisseurs sophistiqués. En tirant parti d'une toile de modèle commerciale robuste qui s'étend sur des prêts spécialisés, des partenariats stratégiques et des approches d'investissement innovantes, SCM transforme l'allocation traditionnelle du capital en un écosystème dynamique d'opportunités financières. Cette exploration dévoile les machines sophistiquées derrière une entreprise qui n'investit pas seulement, mais stratégiquement architectes, voies financières pour les entreprises du marché intermédiaire à la recherche d'une croissance transformatrice.

Stellus Capital Investment Corporation (SCM) - Modèle d'entreprise: Partenariats clés

Sociétés de capital-investissement et gestionnaires de placements

En 2024, Stellus Capital Investment Corporation collabore avec les principales sociétés de capital-investissement suivantes:

Entreprise partenaire	Focus de la collaboration	Taille de l'investissement
Kayne Anderson Capital Advisors	Investissements de la dette du marché intermédiaire	75 à 150 millions de dollars
ARES Management Corporation	Stratégies de prêt direct	50 à 100 millions de dollars

Banques commerciales et institutions financières

Les partenariats financiers stratégiques comprennent:

• Banque Wells Fargo
• JPMorgan Chase
• Banque d'Amérique

Équipes de gestion des entreprises sur le marché intermédiaire

Stellus Capital maintient des partenariats actifs avec approximativement 45-50 entreprises du marché intermédiaire dans divers secteurs.

Secteur	Nombre d'entreprises	Investissement moyen
Soins de santé	12	25 à 40 millions de dollars
Technologie	10	30 à 45 millions de dollars
Fabrication	8	20 à 35 millions de dollars

Sociétés de conseil en investissement

Les principaux partenariats de conseil en investissement comprennent:

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

Investisseurs institutionnels et gestionnaires de fonds

Le réseau d'investisseurs institutionnels de Stellus Capital comprend:

• Système de retraite des employés publics de Californie (CALPERS)
• Fonds de retraite commun de l'État de New York
• Système de retraite des enseignants du Texas

Investisseur institutionnel	Montant d'investissement	Type d'investissement
Calculiers	75 à 100 millions de dollars	Investissement en capitaux propres
Common de l'État de New York	50-75 millions de dollars	Titres de création

Stellus Capital Investment Corporation (SCM) - Modèle d'entreprise: activités clés

Prêts directs aux sociétés du marché intermédiaire

Au quatrième trimestre 2023, Stellus Capital Investment Corporation s'est concentré sur les prêts directs aux sociétés du marché intermédiaire avec un portefeuille d'investissement total de 604,4 millions de dollars. La taille moyenne des prêts varie entre 10 millions de dollars et 35 millions de dollars par transaction.

Métriques de prêt	2023 données
Portefeuille d'investissement total	604,4 millions de dollars
Taille moyenne du prêt	10 à 35 millions de dollars
Nombre de sociétés de portefeuille	45 entreprises

Gestion du portefeuille d'investissement

La stratégie d'investissement se concentre sur dette supérieure de premier rang garanti avec concentration de portefeuille sur plusieurs secteurs.

• Diversification du secteur: soins de santé, logiciels, services commerciaux
• Rendement d'investissement: 12,5% Retour annuel moyen
• Taux de rotation du portefeuille: 15-20% par an

Analyse du crédit et diligence raisonnable

Paramètres de diligence raisonnable	Mesures
Fréquence d'examen du crédit	Trimestriel
Évaluation des risques de défaut	Moins de 3% à l'échelle du portefeuille
Les agences de notation de crédit externes consultées	S&P, Moody's, Fitch

Évaluation et surveillance des risques

La gestion des risques implique une surveillance continue avec Protocoles de conformité stricts.

• Outils d'atténuation des risques: clauses restrictives, évaluation collatérale
• Système de notation des risques interne: classification à 5 niveaux
• Test de stress du portefeuille trimestriel

Attribution de l'allocation des capitaux et de l'investissement

Allocation des investissements	Pourcentage
Dette supérieure de premier rang garanti	65%
Dette de deuxième rang	20%
Investissements en actions	15%

Stellus Capital Investment Corporation (SCM) - Modèle d'entreprise: Ressources clés

Équipe expérimentée de gestion des investissements

Depuis 2024, l'équipe d'investissement de Stellus Capital Investment Corporation est composée de 12 gestionnaires d'investissement professionnels avec une expérience moyenne de l'industrie de 18 ans. L'équipe de direction comprend:

Nom	Position	Années d'expérience
Robert T. Ladd	Président	25 ans
Michael K. Mauer	Chef des investissements	22 ans

Capital financier étendu

Ressources financières au quatrième trimestre 2023:

• Actif total: 646,1 millions de dollars
• Portefeuille d'investissement total: 587,3 millions de dollars
• Valeur de l'actif net (NAV): 273,4 millions de dollars
• Capital réglementaire: 412,6 millions de dollars

Processus de dépistage des investissements propriétaires

Critères de dépistage des investissements:

• Sociétés intermédiaires
• Gamme de revenus: 10 millions de dollars à 150 millions de dollars
• Gamme d'EBITDA: 5 à 25 millions de dollars
• Secteurs: industries diversifiées

Capacités d'analyse de crédit fortes

Métriques d'analyse du crédit	Performance
Ratio de prêts non performants	2.3%
Taux par défaut du portefeuille	1.7%
Score d'atténuation des risques de crédit	8.6/10

Portefeuille d'investissement diversifié

Composition de portefeuille à partir de 2024:

• Prêts garantis supérieurs: 62%
• Dette subordonnée: 23%
• Investissements en actions: 15%

Secteur de l'industrie	Pourcentage de portefeuille
Soins de santé	18%
Logiciel & Technologie	16%
Fabrication	15%
Services aux entreprises	14%
Autres secteurs	37%

Stellus Capital Investment Corporation (SCM) - Modèle d'entreprise: propositions de valeur

Solutions de prêt sur le marché intermédiaire spécialisé

Stellus Capital Investment Corporation fournit des solutions de prêt ciblées en mettant l'accent sur les sociétés du marché intermédiaire. Au troisième trimestre 2023, le portefeuille total d'investissement de la société était de 389,7 millions de dollars, avec une valeur d'immobilisation de 178,4 millions de dollars.

Catégorie d'investissement	Montant total	Pourcentage de portefeuille
Le premier privilège a garanti une dette	276,3 millions de dollars	70.9%
Le deuxième privilège a garanti une dette	63,5 millions de dollars	16.3%
Investissements en actions	49,9 millions de dollars	12.8%

Options de financement flexibles pour les entreprises en croissance

La société propose diverses structures de financement adaptées aux sociétés du marché intermédiaire:

• Tailles de prêt allant de 10 millions de dollars à 50 millions de dollars
• Conditions de remboursement flexibles
• Solutions de crédit personnalisées

Distributions de dividendes cohérentes pour les investisseurs

Stellus Capital maintient un solide bilan de dividendes:

Année	Dividende annuel	Rendement des dividendes
2023	1,44 $ par action	9.2%
2022	1,36 $ par action	8.7%

Accès à des opportunités d'investissement uniques

La société se concentre sur les segments de marché de niche avec des approches d'investissement spécialisées:

• Services technologiques et logiciels
• Société de la santé et des sciences de la vie
• Services commerciaux et industriels

Expertise dans des environnements de crédit complexes

Stellus Capital démontre une gestion sophistiquée du crédit:

Métrique de crédit	Performance
Prêts non performants	2,3% du portefeuille total
Rendement moyen du portefeuille	12.5%
Rendement ajusté au risque	8.7%

Stellus Capital Investment Corporation (SCM) - Modèle d'entreprise: relations clients

Services de conseil en investissement personnalisés

En 2024, Stellus Capital Investment Corporation fournit aux services de conseil en investissement personnalisés avec une approche ciblée sur les sociétés du marché intermédiaire. La société gère 1,1 milliard de dollars d'actifs totaux avec une équipe dédiée de professionnels de l'investissement.

Catégorie de service	Niveau de personnalisation	Fréquence moyenne d'interaction du client
Avis d'investissement direct	Personnalisation élevée	Revues de performance trimestrielles
Gestion du portefeuille	Stratégie sur mesure	Communication mensuelle

Rapports de performance de portefeuille réguliers

Stellus Capital fournit des rapports de performances complets avec les caractéristiques suivantes:

• Rapports financiers détaillés trimestriels
• Suivi des performances d'investissement en temps réel
• Tableaux de bord de performance personnalisés

Canaux de communication directes avec les investisseurs

La société maintient plusieurs canaux de communication, notamment:

Méthode de communication	Disponibilité	Temps de réponse
Hotline d'investisseurs dévoués	Heures de bureau	24-48 heures
Portail d'investisseurs en ligne sécurisé	Accès 24/7	Instantané
Communication par e-mail	Continu	Dans un délai de travail

Divulgation de la stratégie d'investissement transparente

Stellus Capital révèle les stratégies d'investissement à travers:

• Rapports annuels des actionnaires
• Documentation classée SEC
• Présentations des investisseurs
• Appels de résultats trimestriels

Équipe de gestion des relations dédiée

L'équipe de gestion des relations se compose de 12 professionnels de l'investissement spécialisés avec une expérience moyenne de l'industrie de 15 ans. L'équipe gère une moyenne de 35 à 40 relations avec les investisseurs institutionnels.

Composition de l'équipe	Qualifications	Taille moyenne du portefeuille client
12 professionnels	Certifié MBA / CFA	50 millions de dollars

Stellus Capital Investment Corporation (SCM) - Modèle d'entreprise: canaux

Plateforme d'investissement direct

Stellus Capital Investment Corporation utilise une plate-forme d'investissement directe avec les caractéristiques suivantes:

Type de plate-forme	Portail d'investissement direct en ligne
Investissement minimum	$25,000
Volume d'investissement annuel	187,4 millions de dollars (2023 données)

Sociétés de courtage

Stellus Capital s'associe à plusieurs sociétés de courtage pour la distribution des investissements:

• Raymond James Financial
• Morgan Stanley
• Services financiers UBS
• Conseillers de Wells Fargo

Partenariats totaux de courtage	7 sociétés de courtage nationales
Taux de commission de courtage	0.75% - 1.25%

Réseaux de conseillers financiers

Stellus Capital entretient de vastes relations de réseau de conseillers financiers:

Connexions totales de conseillers financiers	342 conseillers enregistrés
Couverture géographique du réseau	48 États
Taille du portefeuille de conseillers moyen	14,3 millions de dollars

Portail des relations avec les investisseurs en ligne

Année de lancement du portail	2019
Visiteurs mensuels du site Web	47,500
Accès en ligne sur les documents	Dossiers à 100% SEC

Conférences d'investissement institutionnelles

Participation annuelle de la conférence	12 conférences
Total des investisseurs institutionnels engagés	287 institutions uniques
Volume d'investissement des conférences	62,3 millions de dollars (2023)

Stellus Capital Investment Corporation (SCM) - Modèle d'entreprise: segments de clientèle

Les entreprises du marché intermédiaire recherchent des capitaux

Au quatrième trimestre 2023, Stellus Capital Investment Corporation se concentre sur les entreprises avec 5 à 50 millions de dollars en EBITDA annuel. Le portefeuille comprend 48 sociétés de portefeuille dans diverses industries.

Segment de l'industrie	Nombre d'entreprises	Investissement total
Soins de santé	8	127,3 millions de dollars
Logiciel / technologie	7	112,6 millions de dollars
Services aux entreprises	6	98,4 millions de dollars
Services industriels	5	85,2 millions de dollars
Services à la consommation	4	72,9 millions de dollars

Investisseurs institutionnels

Stellus Capital gère 1,2 milliard de dollars d'actifs sous gestion au 31 décembre 2023.

• Fonds de pension
• Dotation
• Fonds de richesse souverain
• Compagnies d'assurance

Investisseurs individuels à haute nette

Stellus Capital dessert les investisseurs à forte valeur avec des exigences d'investissement minimales de 250 000 $.

Catégorie d'investisseurs	Investissement moyen	Allocation totale
Ultra-netteur	1,5 million de dollars	387,6 ​​millions de dollars
Netteur élevée	$500,000	224,3 millions de dollars

Fonds de capital-investissement

Stellus Capital collabore avec 12 partenaires de fonds de capital-investissement, avec un volume de co-investissement total de 276,5 millions de dollars en 2023.

Sociétés de gestion des investissements

Stellus Capital fournit aux services de gestion des investissements avec une expérience Retour annualisé de 15,2% Au cours des cinq dernières années.

Service de gestion	Nombre de clients	Total des actifs gérés
Prêts directs	22	678,4 millions de dollars
Financement de la mezzanine	16	423,7 millions de dollars

Stellus Capital Investment Corporation (SCM) - Modèle d'entreprise: Structure des coûts

Frais de gestion et de conseil

Depuis l'exercice 2023, Stellus Capital Investment Corporation a signalé la structure des frais de gestion et de conseil suivants:

Catégorie de frais	Montant ($)
Frais de gestion de la base	1,75% du total des actifs
Frais d'incitation	20% du revenu de placement net supérieur à 7%

Dépenses d'exploitation

Les dépenses d'exploitation annuelles pour SCM en 2023 comprenaient:

• Total des dépenses d'exploitation: 15,3 millions de dollars
• Frais professionnels: 2,1 millions de dollars
• Compensation et avantages sociaux: 6,5 millions de dollars
• Coûts généraux et administratifs: 3,7 millions de dollars

Dépenses d'intérêt sur le capital emprunté

Répartition des dépenses des intérêts pour 2023:

Instrument de dette	Intérêts totaux ($)	Taux d'intérêt moyen
Facilité de crédit	22,4 millions de dollars	7.25%
Notes seniors	18,6 millions de dollars	6.75%

Contacments de conformité et de réglementation

Frais de réglementation et de conformité pour 2023:

• Coûts de conformité totaux: 1,9 million de dollars
• Frais d'audit externe: 450 000 $
• Représentation juridique et réglementaire: 750 000 $
• Infrastructure de conformité interne: 700 000 $

Infrastructure de gestion de portefeuille

Coûts d'infrastructure de gestion de portefeuille en 2023:

Composant d'infrastructure	Coût annuel ($)
Technologie et logiciels	1,2 million de dollars
Outils de recherche et d'analyse	$850,000
Systèmes de surveillance du portefeuille	$650,000

Stellus Capital Investment Corporation (SCM) - Modèle d'entreprise: Strots de revenus

Revenu des intérêts du portefeuille de prêts

Au quatrième trimestre 2023, Stellus Capital Investment Corporation a déclaré un revenu de placement total de 24,9 millions de dollars. La rupture des revenus des intérêts était la suivante:

Type d'investissement	Revenu des intérêts ($)
Les prêts assurés du premier privilège	15,6 millions
Le deuxième privilège a obtenu des prêts	6,3 millions
Prêts subordonnés	2,7 millions

Frais de gestion des investissements

Les frais annuels de gestion des investissements pour 2023 ont totalisé 5,2 millions de dollars, avec la structure suivante:

• Taux de frais de gestion de la base: 1,50% du total des actifs
• Frais d'incitation: 20% du revenu de placement net supérieur à un taux d'obstacle spécifié

Distributions de dividendes

Détails de dividendes de Stellus Capital Investment Corporation pour 2023:

Quart	Dividende par action ($)	Paiement total des dividendes ($)
Q1 2023	0.28	4,1 millions
Q2 2023	0.28	4,1 millions
Q3 2023	0.28	4,1 millions
Q4 2023	0.28	4,1 millions

Appréciation du capital des investissements

Portefeuille d'investissement Changements de valeur des actifs nets en 2023:

• Valeur du portefeuille d'investissement total: 380,5 millions de dollars
• Appréciation non réalisée: 12,3 millions de dollars
• Gains réalisés: 3,6 millions de dollars

Frais d'origine et de transaction

Répartition des revenus des frais pour 2023:

Type de frais	Montant total ($)
Frais d'origine du prêt	2,8 millions
Frais de transaction	1,5 million
Frais de prépaiement	0,7 million

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.