Star Mountain Capital Closes its Oversubscribed SBIC Fund at $290 Million Including SBA Leverage
Star Mountain Capital is pleased to announce its partnership with the U.S. Government’s Small Business Administration (SBA) in support of small private businesses through the SBA’s Small Business Investment Company (SBIC) program. The Star Mountain SBIC Fund closed above its target raise at $290 million of limited partner capital and assumed SBA leverage available. Star Mountain received support from new and existing limited partners including banks, asset management firms, family offices and sophisticated individuals including numerous business owners and/or senior executives of U.S. lower middle-market companies.
New York – August 19, 2021 – Star Mountain Capital, LLC (“Star Mountain”), 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.
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.
Note: The fact that this fund was oversubscribed is not indicative of investor endorsement nor is there any guarantee that future funds will be oversubscribed. This does not constitute an offer to sell or a solicitation of an offer to purchase interests in any investment product. Awards and recognitions by unaffiliated rating services, companies and/or publications should not be construed by a client or prospective client as a guarantee that he / she / it will experience a certain level of results if Star Mountain is engaged, or continues to be engaged, to provide investment advisory services; nor should they be construed as a current or past endorsement, testimonial endorsement, recommendation or referral of Star Mountain or its representatives by any of its clients or any other third party. Rankings published by magazines and others are generally based exclusively on information prepared and / or submitted by the recognized advisor. Moreover, with regard to all performance information contained herein, directly or indirectly, if any, readers should note that past results are not indicative of future results. The description and the selection methodologies of each award and recognition are subjective and will vary.
|Awards and recognitions by unaffiliated rating services, companies, and/or publications should not be construed by a client or prospective client as a guarantee that he/she/it will experience a certain level of results if SMFM is engaged, or continues to be engaged, to provide investment advisory services; nor should they be construed as a current or past endorsement, testimonial endorsement, recommendation or referral of SMFM or its representatives by any of its clients or any other third party. Rankings published by magazines and others are generally based exclusively on information prepared and/or submitted by the recognized advisor.
Crain’s two-part survey process consisted of evaluating each nominated company’s workplace policies, practices, philosophy, systems and demographics. The second part involved an employee survey to measure the employee experience. The combined scores determined the top companies and the final ranking. Star Mountain must pay a fee to Crain’s only for survey collection purposes. Detailed eligibility criteria can be found here: https://www.bestplacestoworknyc.com/eligibility-criteria
To be named to P&I‘s Best Places list, all firms met Best Companies’ high threshold for inclusion and were evaluated against others of similar size. Individual firm profiles, which were compiled based on survey results, reflect U.S. employment numbers and were confirmed by Best Companies in the summer. Company and employee comments were edited for space, style and clarity. Assets under management or advisement are as of June 30, unless otherwise noted. To participate, companies had to have at least 20 employees in the U.S., at least $100 million of discretionary assets under management or advisement and be in business for at least one year. An anonymous employee survey, which aimed to evaluate employee engagement and satisfaction, accounted for 75% of a firm’s score; an employer survey, which evaluated workplace policies, practices, benefits and demographics, made up 25%. https://www.bestplacestoworkmm.com/eligibility-criteria.