Capitala Finance Corp. (Nasdaq: CPTA; CPTAL preferred) is an externally managed, non-diversified closed-end management investment company and business development company that elects regulation under the Investment Company Act of 1940. The company generates current income and capital appreciation to shareholders by originating and investing in first lien senior secured loans, stretch senior secured unitranche loans, second lien loans, subordinated debt, and to a lesser extent equity securities of lower and traditional middle-market companies primarily in the United States; it targets sectors including business services, manufacturing, consumer and retail, healthcare, and energy, with portfolio companies typically featuring stable cash flows and collateralized assets. Founded in 2013 and headquartered in Charlotte, North Carolina, it operates through subsidiaries licensed as Small Business Investment Companies and is advised by Capitala Investment Advisors, LLC, part of the Capitala Group, which has provided private credit and equity to North American middle-market businesses since 1998.
In recent developments, Capitala Finance Corp. completed a transition in July 2021 to a new external investment adviser from Mount Logan Management and changed its trading focus toward high-quality senior secured debt for sustainable earnings, while its associated Capitala Group closed an oversubscribed $1.0 billion permanent capital vehicle in March 2025 and led investments such as a $30.0 million financing for the Vintage Stock, Inc. acquisition and a debt and equity co-investment in Stueve Construction, LLC in October 2024.