P10, Inc. (NYSE: PX) has agreed to acquire Houston‑based direct lender Stellus Capital Management for a total consideration of $250 million in cash and $125 million in P10 Intermediate Holdings units, with an additional earnout of up to $60 million tied to fee‑related revenue in 2027 and 2029. The transaction, which is expected to close in mid‑2026, values Stellus at $310 million when the earnout is included.
The deal expands P10’s direct‑lending platform by adding a portfolio of senior‑secured loans that have generated $10.3 billion in deployed capital across 375 companies. Stellus’s focus on the lower‑middle market aligns with P10’s strategy to build a comprehensive private‑markets operating system and to deepen its presence in the segment that is often described as under‑penetrated but high‑growth.
P10 will finance the cash portion of the transaction using its existing cash reserves and a revolving credit facility, while the unit consideration provides a capital‑efficient way to align Stellus partners with P10’s long‑term interests. The earnout structure, capped at $60 million, incentivizes Stellus to continue generating fee‑related revenue in the coming years and ties the upside to P10’s broader fee‑growth trajectory.
Luke Sarsfield, P10’s Chairman and CEO, said the acquisition “enhances P10’s platform by adding a premier direct‑lending franchise” and highlighted Stellus’s track record of growth and performance. Robert Ladd, Managing Partner of Stellus, noted that the transaction “creates a natural fit within P10’s middle‑ and lower‑middle‑market GP sponsor ecosystem, opening new opportunities across the firm.”
Prior to the deal, P10 reported $67.7 million in revenue for Q1 2025, a 2% year‑over‑year increase, and $85 million for Q4 2024, a 35% jump. The company’s assets under management stood at $40 billion as of September 30 2025, and the acquisition is expected to add roughly 10% to that base, bringing the total closer to $44 billion.
The transaction is projected to be modestly accretive to P10’s adjusted net income per share and fee‑related earnings margin in the first full year after closing. By integrating Stellus’s senior‑secured loan expertise, P10 anticipates incremental fee income and a broader client offering, reinforcing its competitive position in the private‑markets space.
Industry analysts note that the move reflects a broader trend of alternative asset managers expanding their platforms to capture lower‑middle‑market opportunities. P10’s upcoming rebranding to Ridgepost Capital, Inc. on February 11, 2026, underscores the company’s intent to reposition itself as a full‑service private‑markets provider, with the Stellus acquisition serving as a key milestone in that transformation.
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