Star Mountain Readies to Raise New Funds
Unlike most lower middle-market private equity firms that have limited focus, Star Mountain Capital has taken a diversified approach to investing that is more common among larger firms. The New York-based firm invests into established, small and medium-sized companies in three ways: as a direct investor often in the capacity of a lender, as a strategic limited partner through a fund-of-funds program into other lower middle-market funds and, lastly, as a secondary fund investor providing liquidity to limited partners in lower middle-market funds.
“I have been a direct principal investor since 2004 and in 2010 I launched Star Mountain. We developed a comprehensive business plan on how to address the opportunities in this market, which is around half of the total U.S. economy. Generally there aren’t large competitors in this space. The banks do not serve this part of the market well. It’s fragmented and labor intensive. We believe opportunities will continue to be driven from the thematic supply / demand characteristics including the retiring baby boomer population and increasing valuations from successful mergers as companies grow in size.” -Brett Hickey, Star Mountain’s Founder and CEO
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