Stellus Capital Management, LLC announced it has supplied a unitranche secured loan and an equity co‑investment to support Catchment Capital’s majority stake in Vertech Industrial Systems, a Phoenix‑based integrator of automation and digital solutions.
The financing, disclosed on May 5 2026, will be used by Vertech to accelerate growth initiatives and broaden its automation portfolio across data centers, energy, food and beverage, manufacturing, and water/wastewater markets. The exact amount of the unitranche loan and the size of the equity co‑investment were not disclosed.
The deal expands Stellus’s portfolio into the industrial automation sector, a key growth area under the Industry 4.0 trend. Stellus has historically focused on lower‑middle‑market companies with EBITDA between $5 million and $50 million, and this transaction aligns with its strategy of partnering with private‑equity sponsors such as Catchment Capital.
Vertech’s expertise in SCADA, MES, and advanced automation positions it to capture demand from data‑center operators and other high‑value customers. The financing will enable Vertech to invest in new product development and expand its service offerings, reinforcing its competitive advantage in a market that is increasingly driven by digital transformation.
Stellus’s management highlighted the partnership’s potential to generate upside. CEO Robert T. Ladd noted that the unitranche structure gives Stellus a first‑lien claim while allowing participation in future earnings, a model that has proven successful in prior transactions. Partner Robby Berner of Catchment emphasized the strategic fit between Vertech’s capabilities and the growing demand for Industry 4.0 solutions.
The transaction follows Stellus’s recent corporate developments, including the pending acquisition of its investment adviser by P10, Inc. and a $20 million share‑repurchase program, underscoring the firm’s confidence in its capital allocation strategy.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.