Justin Marca's questions to Stellus Capital Investment (SCM) leadership • Q2 2025
Question
Justin Marca, on for Eric Zwick, inquired about the investment pipeline for the remainder of the year and where the company is seeing opportunities. He also asked for an update on the progress or potential resolutions for the loans currently on non-accrual status.
Answer
CEO Robert Ladd responded that M&A activity has picked up meaningfully, leading to a robust pipeline with 5-7 new opportunities reviewed weekly. He expects to grow the portfolio by year-end despite anticipated repayments. Regarding non-accruals, Ladd stated they are working through them with the backing of private equity sponsors and highlighted that no new loans were added to non-accrual status during the quarter.