Feb. 5 at 4:53 PM
$SCM That’s a positive news for this stock, let me explain for you all
1. The Big Picture
P10 (NYSE: PX) is buying Stellus Capital Management.
Think of P10 as a "manager of managers." They own several different investment firms, and they are adding Stellus to their "collection" to get into the direct lending business (loaning money to mid-sized companies).
2. What happens to Stellus?
The good news is that they aren't "gutting" the company. They’re getting bought up by a bigger corporation, tapping more money to invest and that’s without any leadership change.
• Strategy: They will keep using the same investment process they use now.
• Scale: Stellus gets to tap into P10’s much larger network (
$40B+ in assets).
3. What this means for your investment
• The Deal Price: P10 is paying an initial
$250 million (
$125M in cash and
$125M in P10 stock) to buy the management company.
