Q&A: STAR MOUNTAIN RAISES CAPITAL ON PALICO

Brett Hickey is chief executive and founder of Star Mountain Capital, a private equity manager focused exclusively on credit and equity investments in the U.S. lower middle market. He explains here why Star Mountain chose to fundraise using Palico’s digital marketplace.

BH: We secured several commitments using Palico and the standout element was the remarkable efficiency of the digital marketplace. It really saved us time by ensuring that extensive, detailed information about our philosophy, tactics and track record went to investors with a stated interest in our strategy. Because the investors who committed to our fund were able to screen us ahead of time, we cut through a lot of the extraneous meetings and correspondence that a general partner otherwise has to go through before getting to the meat of the business, profitable investing. In sum, we raised capital quickly and closed our fund more rapidly than would have been the case without Palico.

BH: They’re an exceptionally knowledgeable and relevant group, keen to dig into the details of how we invest. That’s tied to the fact that on Palico fund managers meet investors who share the same investment interests. The group of investors we won commitments from are also diverse in terms of geography and type. In fact, Palico helped us put together a particularly resilient, uncorrelated investor base.

BH: No, it’s easy to use. And crucially, when it comes to compliance issues, everyone that sees our fundraising documents and that requests meetings with us on Palico is accredited. The whole point of Palico is that it cuts down on complications and wasted time so that everyone is served better.

Read the article on Palico’s blog by clicking here.