Stellus Private Credit BDC Reports Results for its Fourth Fiscal Quarter and Year Ended December 31, 2025
PR Newswire
HOUSTON, March 13, 2026
HOUSTON, March 13, 2026 /PRNewswire/ — Stellus Private Credit BDC (“Stellus PBDC”, “we”, or the “Company”) today announced financial results for its fiscal quarter and year ended December 31, 2025.
Robert T. Ladd, Chief Executive Officer of Stellus PBDC, stated “We are pleased to report solid operating results in the fourth quarter in which we generated $0.34 per share of net investment income and maintained a stable net asset value. During the quarter, we funded $42 million of investments and received $18 million of repayments, bringing the total portfolio to $400 million at fair value. On January 16, 2026, we declared our 2026 first quarter monthly dividend of $0.35 per share in the aggregate.”
|
FINANCIAL HIGHLIGHTS |
||||||||||||
|
($ in millions, except data relating to per share amounts and shares outstanding) |
||||||||||||
|
Three Months Ended |
Years Ended |
|||||||||||
|
December 31, 2025 |
December 31, 2024 |
December 31, 2025 |
December 31, 2024 |
|||||||||
|
Amount |
Per Share |
Amount |
Per Share |
Amount |
Per Share |
Amount |
Per Share |
|||||
|
Net investment income |
$4.17 |
$0.34 |
$3.49 |
$0.37 |
$15.10 |
$1.33 |
$15.57 |
$1.80 |
||||
|
Net realized gain on investments |
1.42 |
0.11 |
0.01 |
— |
1.52 |
0.14 |
0.03 |
— |
||||
|
Net unrealized (depreciation) appreciation included in earnings |
(1.67) |
(0.12) |
1.39 |
0.14 |
0.40 |
0.04 |
0.88 |
0.11 |
||||
|
Provision for taxes on net unrealized appreciation on investments |
(0.07) |
(0.02) |
(0.08) |
(0.01) |
(0.08) |
(0.01) |
(0.09) |
(0.01) |
||||
|
Net increase in net assets resulting from operations |
$3.85 |
$0.31 |
$4.81 |
$0.50 |
$16.94 |
$1.50 |
$16.39 |
$1.90 |
||||
|
Distributions |
(4.47) |
(0.36) |
(4.53) |
(0.47) |
(16.51) |
(1.46) |
(16.96) |
(1.96) |
||||
|
Other weighted average share adjustments(1) |
— |
— |
— |
(0.01) |
— |
0.01 |
— |
0.01 |
||||
|
Net asset value |
$199.63 |
$15.21 |
$162.39 |
$15.16 |
$199.63 |
$15.21 |
$162.39 |
$15.16 |
||||
|
Weighted average shares outstanding |
12,424,324 |
9,561,014 |
11,316,555 |
8,643,493 |
||||||||
|
(1) Includes the impact of different share amounts as a result of calculating certain per share data based on weighted average shares
|
||||||||||||
|
PORTFOLIO ACTIVITY |
||||
|
($ in millions) |
||||
|
As of |
As of |
|||
|
December 31, 2025 |
December 31, 2024 |
|||
|
Investments at fair value |
$400.1 |
$300.7 |
||
|
Total assets |
$404.7 |
$304.8 |
||
|
Net assets |
$199.6 |
$162.4 |
||
|
Shares outstanding |
13,121,397 |
10,715,095 |
||
|
Net asset value per share |
$15.21 |
$15.16 |
||
|
Three Months Ended |
||||
|
December 31, 2025 |
December 31, 2024 |
|||
|
New investments |
$41.8 |
$52.8 |
||
|
Repayments of investments |
(18.1) |
(10.7) |
||
|
Net activity |
$23.7 |
$42.1 |
||
|
As of |
As of |
|||
|
December 31, 2025 |
December 31, 2024 |
|||
|
Number of portfolio company investments |
74 |
59 |
||
|
Number of debt investments |
71 |
55 |
||
|
Weight average yield of debt and other income producing investments(2) |
||||
|
Cash |
9.3 % |
10.2 % |
||
|
Payment-in-kind (“PIK”) |
0.1 % |
0.2 % |
||
|
Fee amortization |
0.4 % |
0.4 % |
||
|
Total |
9.8 % |
10.8 % |
||
|
Weighted average yield on total investments(3) |
||||
|
Cash |
9.0 % |
9.8 % |
||
|
PIK |
0.1 % |
0.2 % |
||
|
Fee amortization |
0.3 % |
0.3 % |
||
|
Total |
9.4 % |
10.3 % |
||
|
(2) The dollar-weighted average annualized effective yield is computed using the effective interest rate for the Company’s debt investments and other income producing investments, including cash and PIK interest, as well as the accretion of deferred fees. The individual investment yields are then weighted by the respective cost of the investments (as of the date presented) in calculating the weighted average effective yield of the portfolio. The dollar-weighted average annualized yield on the Company’s investments for a given period will generally be higher than what investors of our common stock would realize in a return over the same period because the dollar-weighted average annualized yield does not reflect the Company’s expense or any sales load that may be paid by investors. (3) The dollar weighted average yield on total investments takes the same yields as calculated in the footnote above, but weights such yields to determine the weighted average effective yield as a percentage of the Company’s total investments, including non-income producing equity positions and debt investments on non-accrual status.
|
||||
Results of Operations
Investment income for the three months ended December 31, 2025 and 2024 totaled $9.8 million and $7.8 million, respectively, most of which was interest income from portfolio investments.
Gross operating expenses for the three months ended December 31, 2025 and 2024 totaled $6.2 million and $5.0 million, respectively. For the same periods, base management fees totaled $1.4 million and $1.0 million, income incentive fees totaled $0.7 million and $0.6 million, respectively; capital gains incentive (reversals) fees of ($0.0) million and 0.1 million, which are not currently payable, respectively; fees and expenses related to the Company’s borrowings totaled $3.5 million and $2.6 million (including interest and amortization of deferred financing costs), respectively; administrative expenses totaled $0.2 million and $0.2 million, respectively and other expenses totaled $0.4 million and $0.5 million, respectively. For the three months ended December 31, 2025 and 2024, the Company’s investment advisor, Stellus Private BDC Advisor, LLC (the “Advisor”), waived $0.4 million and $0.3 million of management fees, respectively; $0.2 million of income incentive fees for both periods (waived as our shares were not listed on a national exchange), and less than $0.1 million and $0.2 million of expenses pursuant to expense support and conditional reimbursements from the Advisor, respectively, for net operating expenses of $5.6 million and $4.3 million, respectively.
For the three months ended December 31, 2025 and 2024, net investment income was $4.2 million and $3.5 million, or $0.34 and $0.37 per common share based on weighted average common shares outstanding of 12,424,324 and 9,561,014, respectively.
The Company’s investment portfolio had a net change in unrealized appreciation of ($1.7) million and $1.4 million for the three months ended December 31, 2025 and 2024, respectively.
For the three months ended December 31, 2025 and 2024, net increase in net assets resulting from operations totaled $3.9 million and $4.8 million, or $0.31 and $0.50 per common share, based on weighted average common shares outstanding of 12,424,324 and 9,561,014, respectively.
Liquidity and Capital Resources
On September 30, 2022, the Company entered into a senior secured revolving credit agreement with Zions Bancorporation, N.A., dba Amegy Bank and various other lenders (the “Credit Facility”). The Credit Facility, as amended, provides for borrowings up to a maximum of $300.0 million on a committed basis. As of December 31, 2025 and December 31, 2024, the Company had $128.6 million and $90.5 million in outstanding borrowings under the Credit Facility, respectively.
On August 1, 2024, the Company entered into a Loan Financing and Servicing Agreement (the “Loan Agreement”) by and among Stellus Private Credit BDC SPV LLC (“PBDC SPV”), as borrower, the Company, as equityholder and servicer, Deutsche Bank AG, New York Branch, as facility agent, Citibank, N.A., as collateral agent and collateral custodian, Alter Domus (US) LLC, as collateral administrator, and the lenders that are party thereto from time to time (the “SPV Facility”). The SPV Facility, as amended, provides for $75.0 million of initial commitments with an accordion feature that allows for an additional $25.0 million of total commitments from new and existing lenders on the same terms and conditions as the existing commitments. As of December 31, 2025 and December 31, 2024, the Company had $75.0 million and $50.0 million in outstanding borrowings under the SPV Facility, respectively.
For the three months ended December 31, 2025, the Company sold 412,586 common shares of beneficial interest at a weighted-average price of $15.26 per share for aggregate net proceeds of $6.3 million, which included less than $0.1 million of organizational expense allocation pursuant to subscription agreements entered into between the Company and investors during the three months ended December 31, 2025. Additionally, for the three months ended December 31, 2025, the Company called $7.5 million pursuant to capital draw down subscription agreements between the Company and its shareholders. The transaction resulted in the issuance of 491,481 common shares of beneficial interest at a price of $15.26 per share. Lastly, the Company purchased 176,879 common shares of beneficial interest were validly tendered and not withdrawn prior to the expiration of the tender offer during the three months ended December 31, 2025 at a price equal to $15.25 per Share for an aggregate purchase price of approximately $2.7 million.
Distributions
During the three months ended December 31, 2025 and 2024, the Company declared aggregate distributions of $0.36 per share and $0.50, respectively ($4.5 million in the aggregate for both periods). Tax characteristics of all distributions are reported to stockholders on Form 1099-DIV. Tax characteristics of all distributions are reported to stockholders on Form 1099-DIV. Approximately $0.3 million of the dividends declared in 2025 are expected to be characterized as long-term capital gains. None of these dividends are expected to include a return of capital.
Recent Portfolio Activity
The Company invested in the following portfolio companies for the three months ended December 31, 2025:
|
Activity Type |
Date |
Company Name |
Company Description |
Investment Amount |
Instrument Type |
||||||
|
Add-On Investment |
October 1, 2025 |
The Hardenbergh Group, Inc.* |
Provider of patient safety, clinical risk mitigation, and healthcare compliance solutions |
$ |
1,241,645 |
Senior Secured – First Lien |
|||||
|
New Investment |
October 17, 2025 |
Fidus Systems Inc. |
Provider of outsourced electronic product development and engineering services |
$ |
3,023,836 |
Senior Secured – First Lien |
|||||
|
$ |
2,015,890 |
Delayed Draw Term Loan Commitment |
|||||||||
|
$ |
1,446,825 |
Revolver Commitment |
|||||||||
|
$ |
216,218 |
Equity |
|||||||||
|
Add-On Investment |
October 22, 2025 |
Recharged Opco, LLC* |
Provider of residential electrical services |
$ |
775,904 |
Priority Revolver Commitment |
|||||
|
Add-On Investment |
October 27, 2025 |
Channel Partners Intermediateco, LLC* |
Provider of outsourced marketing services |
$ |
277,083 |
Revolver Commitment |
|||||
|
Add-On Investment |
November 6, 2025 |
Mobotrex Acquisition, LLC* |
Distributor and manufacturer of intelligent traffic solution equipment |
$ |
1,435,403 |
Senior Secured – First Lien |
|||||
|
$ |
1,668,789 |
Delayed Draw Term Loan Commitment |
|||||||||
|
$ |
461,751 |
Revolver Commitment |
|||||||||
|
Add-On Investment |
December 3, 2025 |
BC Partners Glengarry Co-Investment LP* |
Provider of business-to-business account based marketing services |
$ |
11,916 |
Equity |
|||||
|
New Investment |
December 3, 2025 |
Pure Upper Holdco LLC |
Environmental and ambulatory cleaning services for healthcare facilities |
$ |
4,472,417 |
Senior Secured – First Lien |
|||||
|
$ |
1,647,733 |
Delayed Draw Term Loan Commitment |
|||||||||
|
$ |
1,859,584 |
Revolver Commitment |
|||||||||
|
$ |
178,183 |
Equity |
|||||||||
|
Add-On Investment |
December 15, 2025 |
SP CS Holdings LLC* |
Provider of product testing and consumer insights |
$ |
59,038 |
Equity |
|||||
|
Add-On Investment |
December 15, 2025 |
Recharged Opco, LLC* |
Provider of residential electrical services |
$ |
274,800 |
Priority Revolver Commitment |
|||||
|
Add-On Investment |
December 17, 2025 |
Carolina Topco Holdings, LP* |
National commercial surface care and restoration company |
$ |
67,784 |
Equity |
|||||
|
New Investment |
December 18, 2025 |
Pilot Power Group Acquisition, Inc. |
Managed energy procurement and energy advisory services |
$ |
9,000,000 |
Senior Secured – First Lien |
|||||
|
$ |
275,151 |
Equity |
|||||||||
|
Add-On Investment |
December 19, 2025 |
Curion Holdings, LLC |
Provider of product testing and consumer insights |
$ |
2,053,573 |
Senior Secured – First Lien |
|||||
|
Add-On Investment |
December 22, 2025 |
Solid Surface Holdco, LLC* |
National commercial surface care and restoration company |
$ |
1,000,000 |
Senior Secured – First Lien |
|||||
|
$ |
509,581 |
Revolver Commitment |
|||||||||
|
New Investment |
December 23, 2025 |
Valor Buyco |
Provider of dispatched road services |
$ |
2,918,359 |
Senior Secured – First Lien |
|||||
|
$ |
2,646,753 |
Delayed Draw Term Loan Commitment |
|||||||||
|
$ |
1,497,245 |
Revolver Commitment |
|||||||||
|
$ |
490,441 |
Equity |
|||||||||
|
Add-On Investment |
December 31, 2025 |
FairWave Holdings, LLC* |
Specialty coffee platform |
$ |
49,707 |
Senior Secured – First Lien |
|||||
|
$ |
252,134 |
Delayed Draw Term Loan Commitment |
|||||||||
|
* Existing portfolio company |
|||||||||||
The Company realized the following portfolio companies for the three months ended December 31, 2025:
|
Activity Type |
Date |
Company Name |
Company Description |
Proceeds Received |
Realized Gain |
Instrument Type |
||||||||
|
Full Repayment |
October 1, 2025 |
Heartland Business Systems, LLC |
End-to-end information technologies solutions provider |
$ |
3,122,393 |
$ |
— |
Senior Secured – First Lien |
||||||
|
$ |
3,241,539 |
$ |
— |
Delayed Draw Term Loan |
||||||||||
|
Full Realization |
$ |
452,671 |
$ |
360,253 |
Equity |
|||||||||
|
Full Realization |
December 8, 2025 |
EHI Buyer, Inc. |
Provider of design, engineering, installation, and maintenance services for building management systems |
$ |
1,216,042 |
$ |
1,039,429 |
Equity |
||||||
Events Subsequent to December 31, 2025
The Company’s management has evaluated subsequent events through March 13, 2026. There have been no subsequent events that require recognition or disclosure except for the following described below.
Investment Portfolio
The Company invested in the following portfolio companies subsequent to December 31, 2025:
|
Activity Type |
Date |
Company Name |
Company Description |
Investment Amount |
Instrument Type |
||||||
|
Add-On Investment |
January 2, 2026 |
Bart & Associates, LLC* |
Provider of content, information, tech-enabled services, and hosts competitions for the U.S. equine industry |
$ |
1,000,000 |
Senior Secured – First Lien |
|||||
|
$ |
32,595 |
Equity |
|||||||||
|
New Investment |
January 9, 2026 |
Silver Parent, LLC |
Senior-care focused placement platform |
$ |
4,611,400 |
Senior Secured – First Lien |
|||||
|
$ |
1,006,422 |
Revolver Commitment |
|||||||||
|
$ |
387,436 |
Equity |
|||||||||
|
Add-On Investment |
January 15, 2026 |
GRC Java Holdings, LLC* |
Specialty coffee platform |
$ |
17,332 |
Equity |
|||||
|
Add-On Investment |
January 21, 2026 |
evolv Holdco, LLC* |
Digital transformation consulting firm |
$ |
4,530 |
Equity |
|||||
|
Add-On Investment |
February 2, 2026 |
BI Investors, LLC* |
Provider of center-based applied behavioral analysis therapy |
$ |
4,467 |
Equity |
|||||
|
Add-On Investment |
February 3, 2026 |
Green Topco Holdings, LLC* |
Cyber-security focused value-added reseller and associated service provider |
$ |
11,896 |
Equity |
|||||
|
Add-On Investment |
February 6, 2026 |
SP MWM Holdco LLC* |
Provider of test and measurement services and equipment |
$ |
113,721 |
Equity |
|||||
|
Add-On Investment |
February 9, 2026 |
Michelli, LLC* |
Provider of test and measurement services and equipment |
$ |
4,000,000 |
Delayed Draw Term Loan Commitment |
|||||
|
New Investment |
March 3, 2026 |
Precision Strategies, LLC |
Strategic communications and marketing agency |
$ |
4,524,350 |
Senior Secured – First Lien |
|||||
|
$ |
1,177,716 |
Revolver Commitment |
|||||||||
|
New Investment |
March 6, 2026 |
Synergy Health Partners |
Provider of orthopedic and musculoskeletal care |
$ |
7,274,448 |
Senior Secured – First Lien |
|||||
|
$ |
1,866,885 |
Delayed Draw Term Loan Commitment |
|||||||||
|
$ |
962,920 |
Revolver Commitment |
|||||||||
|
$ |
300,126 |
Equity |
|||||||||
|
* Existing portfolio company |
|||||||||||
The Company realized the following portfolio companies subsequent to December 31, 2025:
|
Activity Type |
Date |
Company Name |
Company Description |
Proceeds Received |
Instrument Type |
||||||
|
Full Repayment |
January 30, 2026 |
Luxium Solutions, LLC |
Manufacturer and distributor of high- performance advanced materials and assemblies |
$ |
3,315,849 |
Senior Secured – First Lien |
|||||
|
$ |
480,795 |
Delayed Draw Term Loan |
|||||||||
|
Full Repayment |
February 3, 2026 |
Arctiq, Inc. |
Cyber-security focused value-added reseller and associated service provider |
$ |
9,780,648 |
Senior Secured – First Lien |
|||||
|
$ |
1,601,662 |
Delayed Draw Term Loan |
|||||||||
Credit Facilities
As of March 13, 2026, the outstanding balances under the Credit Facility and SPV Facility were $137.2 million and $75.0 million, respectively.
Sale of Unregistered Securities
Since December 31, 2025, the Company sold 185,211 common shares of beneficial interest at a price of $15.21 per share for aggregate proceeds of $2.8 million, which included less than $0.1 million of organizational expense allocation pursuant to subscription agreements entered into between the Company and investors.
Share Repurchases
Since December 31, 2025, 357,092 common shares of beneficial interest were validly tendered and not withdrawn prior to the expiration of the tender offer. The Company purchased all common shares of beneficial interest validly tendered and not withdrawn at a price equal to $15.21 per share for an aggregate purchase price of $5.4 million.
Distributions Declared
On January 16, 2026 the Board declared a regular monthly dividend for each of January, February and March 2026 as follows:
|
Record |
Payment |
Amount per |
|||||
|
Declared |
Date |
Date |
Share |
||||
|
1/16/2026 |
1/20/2026 |
1/30/2026 |
$ |
0.1167 |
|||
|
1/16/2026 |
2/2/2026 |
2/27/2026 |
$ |
0.1167 |
|||
|
1/16/2026 |
3/2/2026 |
3/31/2026 |
$ |
0.1167 |
|||
Acquisition of Stellus Capital Management
On February 5, 2026, the Company announced that Stellus Capital Management, the majority owner of the Advisor, entered into a definitive agreement with P10 Intermediate Holdings, LLC, an affiliate of Ridgepost Capital, Inc. (formerly known as P10, Inc.) (“Ridgepost”), pursuant to which Ridgepost will acquire all of the outstanding equity interests in Stellus Capital Management (the “Transaction”).
Pursuant to the terms of the Transaction, Stellus Capital Management and the Advisor will continue to be managed by their current partners, who will retain control of Stellus Capital Management and the Advisor’s day-to-day operations, including investment decisions and investment committee processes. The Advisor will continue to serve as the external investment adviser to the Company. Consummation of the Transaction will result in a change of control of the Advisor, and this will result in an assignment of the current investment advisory agreement between the Company and the Advisor under the 1940 Act. As a result, the current investment advisory agreement will terminate upon consummation of the Transaction. Our Board and shareholders will therefore be asked to approve a new investment advisory agreement with the Advisor (the “New Advisory Agreement”), the terms of which are expected to remain the same as the current investment advisory agreement, other than the initial term of the investment advisory agreement. Closing of the Transaction is expected to occur in the middle of 2026 and is subject to customary conditions for a transaction of this nature. If approved, the New Advisory Agreement will take effect following the closing of the Transaction.
About Stellus Private Credit BDC
The Company is an externally-managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private lower middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) with a focus on investing through first lien (including unitranche) loans, often with a corresponding equity investment. The Company’s investment activities are managed by its investment adviser, Stellus Private BDC Advisor, LLC.
Forward-Looking Statements
Statements included herein may contain “forward-looking statements” which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission including the final prospectus that will be filed with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Contacts
Stellus Private Credit BDC
W. Todd Huskinson, Chief Financial Officer
(713) 292-5414
thuskinson@stelluscapital.com
|
STELLUS PRIVATE CREDIT BDC
|
||||||
|
December 31, 2025 |
December 31, 2024 |
|||||
|
ASSETS |
||||||
|
Non-controlled, non-affiliated investments, at fair value (amortized cost of $396,791,982 and $297,791,269, respectively) |
$ |
400,131,924 |
$ |
300,732,065 |
||
|
Cash and cash equivalents |
2,586,895 |
2,144,116 |
||||
|
Other receivable |
— |
4,340 |
||||
|
Interest receivable |
1,765,379 |
1,367,849 |
||||
|
Expense reimbursement receivable from the Advisor (Note 2) |
2,580 |
161,473 |
||||
|
Deferred offering costs |
60,993 |
127,983 |
||||
|
Related party receivable |
— |
2,004 |
||||
|
Prepaid expenses |
13,632 |
164,350 |
||||
|
Receivable for sales and repayments of investments |
165,651 |
86,896 |
||||
|
Total Assets |
$ |
404,727,054 |
$ |
304,791,076 |
||
|
LIABILITIES |
||||||
|
Credit Facilities payable |
$ |
200,281,671 |
$ |
138,692,860 |
||
|
Unearned revenue |
1,207,706 |
921,629 |
||||
|
Management fees payable |
908,154 |
648,149 |
||||
|
Income incentive fee payable |
544,620 |
452,186 |
||||
|
Capital gains incentive fee payable |
527,603 |
306,229 |
||||
|
Interest payable |
865,205 |
613,821 |
||||
|
Administrative services payable |
189,715 |
109,027 |
||||
|
Income tax payable |
126,348 |
51,427 |
||||
|
Deferred tax liability |
338,611 |
259,455 |
||||
|
Other accrued expenses and liabilities |
110,706 |
348,413 |
||||
|
Total Liabilities |
$ |
205,100,339 |
$ |
142,403,196 |
||
|
Commitments and contingencies (Note 7) |
||||||
|
Net Assets |
$ |
199,626,715 |
$ |
162,387,880 |
||
|
NET ASSETS |
||||||
|
Common shares of beneficial interest, par value $0.01 per share (unlimited shares authorized; 13,121,397 and 10,715,095 issued and outstanding, respectively) |
$ |
131,214 |
$ |
107,151 |
||
|
Paid-in capital |
195,935,870 |
159,483,435 |
||||
|
Total distributable earnings |
3,559,631 |
2,797,294 |
||||
|
Net Assets |
$ |
199,626,715 |
$ |
162,387,880 |
||
|
Total Liabilities and Net Assets |
$ |
404,727,054 |
$ |
304,791,076 |
||
|
Net Asset Value Per Share |
$ |
15.21 |
$ |
15.16 |
||
|
STELLUS PRIVATE CREDIT BDC
|
|||||||||
|
Year Ended |
|||||||||
|
December 31, 2025 |
December 31, 2024 |
December 31, 2023 |
|||||||
|
INVESTMENT INCOME |
|||||||||
|
Interest income |
$ |
35,162,306 |
$ |
28,560,141 |
$ |
22,760,669 |
|||
|
Other income |
799,084 |
478,544 |
601,776 |
||||||
|
Total Investment Income |
$ |
35,961,390 |
$ |
29,038,685 |
$ |
23,362,445 |
|||
|
OPERATING EXPENSES |
|||||||||
|
Management fees |
$ |
4,878,073 |
$ |
3,469,835 |
$ |
2,833,601 |
|||
|
Income incentive fees |
2,553,477 |
2,602,793 |
2,097,153 |
||||||
|
Capital gains incentive fee |
221,374 |
44,545 |
261,684 |
||||||
|
Professional fees |
686,503 |
747,853 |
670,800 |
||||||
|
Organization costs |
— |
— |
1,000 |
||||||
|
Amortization of deferred offering costs |
224,668 |
225,050 |
165,937 |
||||||
|
Administrative services expenses |
728,246 |
523,823 |
417,573 |
||||||
|
Trustees’ fees |
160,000 |
160,000 |
160,000 |
||||||
|
Insurance expense |
86,318 |
81,685 |
81,438 |
||||||
|
Valuation fees |
93,513 |
64,498 |
40,324 |
||||||
|
Interest expense and other fees |
13,448,925 |
9,505,536 |
8,225,528 |
||||||
|
Income tax expense |
98,295 |
32,183 |
44,925 |
||||||
|
Other general and administrative expenses |
292,033 |
262,575 |
142,294 |
||||||
|
Total Operating Expenses |
$ |
23,471,425 |
$ |
17,720,376 |
$ |
15,142,257 |
|||
|
Expenses reimbursed/fees waived by Advisor (Note 2) |
$ |
(2,609,520) |
$ |
(4,253,904) |
$ |
(4,101,044) |
|||
|
Net Operating Expenses |
$ |
20,861,905 |
$ |
13,466,472 |
$ |
11,041,213 |
|||
|
Net Investment Income |
$ |
15,099,485 |
$ |
15,572,213 |
$ |
12,321,232 |
|||
|
Net realized gain on non-controlled, non-affiliated investments |
$ |
1,467,178 |
$ |
— |
$ |
841,075 |
|||
|
Net realized gain on foreign currency translation |
52,488 |
30,648 |
24,343 |
||||||
|
Provision for taxes on realized gain on investments |
— |
— |
(142,988) |
||||||
|
Net change in unrealized appreciation on non-controlled, non-affiliated investments |
378,831 |
906,234 |
2,566,523 |
||||||
|
Net change in unrealized appreciation (depreciation) on foreign currency translations |
20,315 |
(25,757) |
11,719 |
||||||
|
Provision for taxes on net unrealized gain on investments |
(79,156) |
(91,591) |
(167,865) |
||||||
|
Net Increase in Net Assets Resulting from Operations |
$ |
16,939,141 |
$ |
16,391,747 |
$ |
15,454,039 |
|||
|
Net Investment Income Per Share – basic and diluted |
$ |
1.33 |
$ |
1.80 |
$ |
1.96 |
|||
|
Net Increase in Net Assets Resulting from Operations Per Share – basic and diluted |
$ |
1.50 |
$ |
1.90 |
$ |
2.46 |
|||
|
Weighted Average Common Shares of Beneficial Interest Outstanding – basic and diluted |
11,316,555 |
8,643,493 |
6,273,882 |
||||||
|
Distributions Per Share – basic and diluted |
$ |
1.46 |
$ |
1.96 |
$ |
1.88 |
|||
|
STELLUS PRIVATE CREDIT BDC
|
||||||||||||||
|
Common Shares of |
||||||||||||||
|
Beneficial Interest |
Total |
|||||||||||||
|
Number of |
Par |
Paid-in |
distributable |
|||||||||||
|
shares |
value |
capital |
(loss) gain |
Net Assets |
||||||||||
|
Balances at December 31, 2022 |
5,483,433 |
$ |
54,834 |
$ |
80,950,845 |
$ |
(742,722) |
$ |
80,262,957 |
|||||
|
Net investment income |
— |
— |
— |
12,321,232 |
12,321,232 |
|||||||||
|
Net realized gain on non-controlled, non-affiliated investments |
— |
— |
— |
841,075 |
841,075 |
|||||||||
|
Net realized gain on foreign currency translation |
— |
— |
— |
24,343 |
24,343 |
|||||||||
|
Provision for taxes on realized gain on investments |
— |
— |
— |
(142,988) |
(142,988) |
|||||||||
|
Net change in unrealized appreciation on non-controlled, non-affiliated investments |
— |
— |
— |
2,566,523 |
2,566,523 |
|||||||||
|
Net change in unrealized appreciation on foreign currency translations |
— |
— |
— |
11,719 |
11,719 |
|||||||||
|
Provision for taxes on net unrealized gain on investments |
— |
— |
— |
(167,865) |
(167,865) |
|||||||||
|
Return of capital and other tax related adjustments |
— |
— |
(197,724) |
197,724 |
— |
|||||||||
|
Distributions from net investment income |
— |
— |
— |
(11,768,088) |
(11,768,088) |
|||||||||
|
Issuance of common shares of beneficial interest |
1,618,703 |
16,187 |
24,056,927 |
— |
24,073,114 |
|||||||||
|
Balances at December 31, 2023 |
7,102,136 |
$ |
71,021 |
$ |
104,810,048 |
$ |
3,140,953 |
$ |
108,022,022 |
|||||
|
Net investment income |
— |
— |
— |
15,572,213 |
15,572,213 |
|||||||||
|
Net realized gain on foreign currency translation |
— |
— |
— |
30,648 |
30,648 |
|||||||||
|
Net change in unrealized appreciation on non-controlled, non-affiliated investments |
— |
— |
— |
906,234 |
906,234 |
|||||||||
|
Net change in unrealized depreciation on foreign currency translations |
— |
— |
— |
(25,757) |
(25,757) |
|||||||||
|
Provision for taxes on net unrealized gain on investments |
— |
— |
— |
(91,591) |
(91,591) |
|||||||||
|
Return of capital and other tax related adjustments |
— |
— |
(221,350) |
221,350 |
— |
|||||||||
|
Distributions from net investment income |
— |
— |
— |
(16,701,939) |
(16,701,939) |
|||||||||
|
Distributions from net realized capital gains |
— |
— |
— |
(254,817) |
(254,817) |
|||||||||
|
Issuance of common shares of beneficial interest |
4,119,031 |
41,191 |
62,556,970 |
— |
62,598,161 |
|||||||||
|
Redemption of common shares of beneficial interest |
(506,072) |
(5,061) |
(7,662,233) |
— |
(7,667,294) |
|||||||||
|
Balances at December 31, 2024 |
10,715,095 |
$ |
107,151 |
$ |
159,483,435 |
$ |
2,797,294 |
$ |
162,387,880 |
|||||
|
Net investment income |
— |
— |
— |
15,099,485 |
15,099,485 |
|||||||||
|
Net realized gain on non-controlled, non-affiliated investments |
— |
— |
— |
1,467,178 |
1,467,178 |
|||||||||
|
Net realized gain on foreign currency translation |
— |
— |
— |
52,488 |
52,488 |
|||||||||
|
Net change in unrealized appreciation on non-controlled, non-affiliated investments |
— |
— |
— |
378,831 |
378,831 |
|||||||||
|
Net change in unrealized appreciation on foreign currency translations |
— |
— |
— |
20,315 |
20,315 |
|||||||||
|
Provision for taxes on net unrealized gain on investments |
— |
— |
— |
(79,156) |
(79,156) |
|||||||||
|
Return of capital and other tax related adjustments |
— |
— |
(337,006) |
337,006 |
— |
|||||||||
|
Distributions from net investment income |
— |
— |
— |
(16,240,877) |
(16,240,877) |
|||||||||
|
Distributions from net realized capital gains |
— |
— |
— |
(272,933) |
(272,933) |
|||||||||
|
Issuance of common shares of beneficial interest |
2,747,060 |
27,471 |
41,986,208 |
— |
42,013,679 |
|||||||||
|
Redemption of common shares of beneficial interest |
(340,758) |
(3,408) |
(5,196,767) |
— |
(5,200,175) |
|||||||||
|
Balances at December 31, 2025 |
13,121,397 |
$ |
131,214 |
$ |
195,935,870 |
$ |
3,559,631 |
$ |
199,626,715 |
|||||
|
STELLUS PRIVATE CREDIT BDC
|
|||||||||
|
For the years ended |
|||||||||
|
December 31, 2025 |
December 31, 2024 |
December 31, 2023 |
|||||||
|
Cash Flows from Operating Activities |
|||||||||
|
Net increase in net assets resulting from operations |
$ |
16,939,141 |
$ |
16,391,747 |
$ |
15,454,039 |
|||
|
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities: |
|||||||||
|
Purchases of investments |
(135,656,548) |
(119,805,183) |
(89,322,601) |
||||||
|
Proceeds from sales and repayments of investments |
39,379,107 |
30,250,267 |
42,260,585 |
||||||
|
Net change in unrealized appreciation on investments |
(378,831) |
(906,234) |
(2,566,523) |
||||||
|
Net change in unrealized (appreciation) depreciation foreign currency translations |
(20,315) |
25,757 |
(11,719) |
||||||
|
Increase in investments due to PIK |
(313,010) |
(1,059,816) |
(129,990) |
||||||
|
Amortization of premium and accretion of discount, net |
(1,021,839) |
(678,569) |
(502,109) |
||||||
|
Deferred tax provision |
79,156 |
91,590 |
167,865 |
||||||
|
Amortization of loan structure fees |
682,848 |
306,387 |
586,127 |
||||||
|
Amortization of deferred offering costs |
224,668 |
225,050 |
165,937 |
||||||
|
Net realized gain on investments |
(1,467,178) |
— |
(841,075) |
||||||
|
Changes in other assets and liabilities |
|||||||||
|
(Increase) decrease in interest receivable |
(397,530) |
127,732 |
(465,307) |
||||||
|
Decrease (increase) in other receivable |
4,340 |
(4,340) |
— |
||||||
|
Decrease (increase) in related party receivable |
2,004 |
160,451 |
(152,835) |
||||||
|
Decrease (increase) in expense reimbursements receivable from the Advisor |
158,893 |
(34,934) |
39,099 |
||||||
|
Decrease (increase) in prepaid expenses |
150,718 |
(37,331) |
5,985 |
||||||
|
Increase (decrease) in administrative services payable |
80,688 |
(15,931) |
58,894 |
||||||
|
Increase (decrease) in interest payable |
251,384 |
246,728 |
(196,148) |
||||||
|
Increase in income management fees payable |
260,005 |
648,149 |
— |
||||||
|
Increase in income incentive fees payable |
92,434 |
12,332 |
111,658 |
||||||
|
Increase in capital gains incentive fees payable |
221,374 |
44,545 |
261,684 |
||||||
|
Increase in unearned revenue |
286,077 |
24,091 |
357,904 |
||||||
|
Increase (decrease) in income tax payable |
74,921 |
(131,062) |
175,018 |
||||||
|
(Decrease) increase in other accrued expenses and liabilities |
(237,707) |
171,164 |
57,975 |
||||||
|
Net Cash Used in Operating Activities |
$ |
(80,605,200) |
$ |
(73,947,410) |
$ |
(34,485,537) |
|||
|
Cash Flows from Financing Activities |
|||||||||
|
Proceeds from issuance of common shares of beneficial interest |
$ |
42,013,679 |
$ |
62,598,161 |
$ |
24,073,114 |
|||
|
Offering costs paid for common shares of beneficial interest issued |
(157,678) |
(280,158) |
(184,418) |
||||||
|
Purchase of common shares of beneficial interest in tender offer |
(5,200,175) |
(7,667,294) |
— |
||||||
|
Stockholder distributions paid |
(16,513,810) |
(20,507,824) |
(10,026,553) |
||||||
|
Borrowings under Credit Facilities |
163,200,000 |
184,300,000 |
169,750,000 |
||||||
|
Repayments of Credit Facilities |
(100,000,000) |
(141,850,000) |
(152,365,000) |
||||||
|
Financing costs paid on Credit Facilities |
(2,294,037) |
(1,095,044) |
(387,744) |
||||||
|
Short-term loan borrowings |
— |
— |
4,500,000 |
||||||
|
Short-term loan repayments |
— |
— |
(15,750,000) |
||||||
|
Net Cash Provided by Financing Activities |
$ |
81,047,979 |
$ |
75,497,841 |
$ |
19,609,399 |
|||
|
Net Increase (Decrease) in Cash and Cash Equivalents |
$ |
442,779 |
$ |
1,550,431 |
$ |
(14,876,138) |
|||
|
Cash and Cash Equivalents Balance at Beginning of Period |
2,144,116 |
593,685 |
15,469,823 |
||||||
|
Cash and Cash Equivalents Balance at End of Period |
$ |
2,586,895 |
$ |
2,144,116 |
$ |
593,685 |
|||
|
Supplemental and Non-Cash Activities |
|||||||||
|
Cash paid for interest expense |
$ |
12,514,693 |
$ |
7,835,549 |
$ |
1,270,834 |
|||
|
Income and excise tax paid |
23,374 |
163,245 |
12,895 |
||||||
|
Value of common shares of beneficial interest issued pursuant to Dividend Reinvestment Plan |
1,329,809 |
623,113 |
43,894 |
||||||
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SOURCE Stellus Private Credit BDC
