Stellus Spins Out of D.E. Shaw
The investment firm will continue to focus on middle market companies in the energy space and maintain a relationship with its former parent
January 26, 2012
Investment firm D.E. Shaw has spun off Stellus Capital Management, a unit that focuses on middle market energy companies.
Stellus, based in Houston, had been part of D.E. Shaw for eight years. It will continue to make investments of between $10 million and $100 million in mid-sized energy companies in the form of first-lien, second-lien, unitranche, mezzanine and convertible debt. Stellus also invests in specialty finance, software, general industrial, defense and government and business services. It focuses on companies that generate between $5 million and $50 million of Ebitda per year. The firm also invest in equity and preferred stock.
The firm has 15 investment professionals working in its Houston headquarters and its offices in San Francisco, Rye, N.Y. and Bethesda, Md. It has overseen approximately $5 billion in investments in 193 companies since 2004.
Stellus will maintain a strategic relationship with D.E. Shaw, and manages approximately $1.4 billion in D.E. Shaw assets.
Matthew Sheahan reports for Leveraged Finance News
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