NEW YORK–(BUSINESS WIRE)–Star Mountain Capital, LLC, a specialized investment manager, with ~$2 billion in assets under management, focused exclusively on investing in established, private small and medium-sized U.S. businesses (lower middle-market), is pleased to announce that it has closed its $290 million (including assumed SBA leverage available) SBIC fund with support from new and existing limited partners including banks, strategic asset management firms, family offices and sophisticated individuals including numerous business owners and/or senior executives of U.S. lower middle-market companies. This fund provides Star Mountain with additional capital to make value-added debt and equity investments in established U.S. small and medium-size businesses that generally have between $15 million and $250 million in annual revenues.
The Star Mountain SBIC fund’s Limited Partner Advisory Committee (LPAC) consists of sophisticated institutional investors Magnetar (a ~$14 billion AUM global alternative asset manager), and two multi-billion-dollar banks, Blue Ridge Bank and Commercial Bank of California, both of which have intersections with the U.S. lower middle-market.
“We are honored and delighted to have such strategic and high caliber investors to partner with us and the SBA in our SBIC fund,” said Brett Hickey, Star Mountain Capital Founder & CEO. “We are proud to continue to support the aligned mission of the SBA and Star Mountain in helping grow small businesses, encouraging job creation and diversity in the U.S. which is why Star Mountain’s trademarked slogan is Investing in the Growth Engine of America”.
“Our team at Magnetar has known the Star Mountain team for many years and we are delighted to make this strategic investment with them. The objective is to generate Alpha for our investors in an asset class that has a low correlation to the high yield markets and seeks to benefit society with small business job creation and economic development,” said Praveen Saxena, Portfolio Manager at Magnetar.
“We have worked with Star Mountain for years, and we’re excited to expand our relationship to continue delivering capital to America’s small and mid-sized businesses,” said Brian K. Plum, President and CEO of Blue Ridge Bank. “Star Mountain and the SBIC program is a winning combination for investors, businesses owners, and the US economy.”
“We are thrilled to add this partnership with Star Mountain helping support West Coast businesses as their platform and capabilities bring a lot of complementary value to private businesses alongside us,” said Ash Patel, CEO of Commercial Bank of California.
Star Mountain was advised by Winston & Strawn LLP, a ~950 lawyer international law firm, and Lowenstein Sandler LLP, a 300+ lawyer national law firm.
Star Mountain was again named Best Places to Work by Pensions & Investments and one of the 2020 Best Places to Work by Crain’s New York Business highlighting the firms focus on culture and community.
ABOUT STAR MOUNTAIN
With approximately $2 billion in assets under management (as of July 31, 2021), Star Mountain takes a data-driven approach to investing into the U.S. lower middle-market through two complementary investment strategies: (i) direct debt and equity investing and (ii) secondaries (acquiring LP interests and direct assets). Star Mountain believes these complementary strategies provide scalable and diversified access for its institutional and high-net-worth investors to established small and medium-sized businesses that generally have at least $15 million in annual revenues. Star Mountain’s 75+ person, 100% employee-owned team and Collaborative Ecosystem ® provides distinctive value to lower middle-market businesses as a flexible capital solution partner.
Since 2010, Star Mountain has made over 100 direct investments in U.S. small and medium-sized businesses and over 20 secondaries / fund investments within its Collaborative Ecosystem ®, exclusively focused on the U.S. lower middle-market. With over 75 team members (including advisors/operating partners) across 20+ locations nationwide, Star Mountain believes its focus and dedication has been productive for job creation and economic development. Star Mountain is dedicated to this large market of underserved businesses purpose-built to address the challenges and opportunities of these companies. As part of its commitment, Star Mountain has trademarked Investing in the Growth Engine of America ®.
As part of its ESG program (Environmental, Social and Governance), Star Mountain’s Charitable Foundation, a not-for-profit 501(c)3 focuses on improving lives through economic development, including job creation, health & wellness and cancer research. Notable missions include helping match veterans and women with high quality small and medium-sized business career opportunities across the country, including within Star Mountain’s portfolio.
