Star Mountain Capital

What is Star Mountain Capital?

Star Mountain Capital, founded in 2010 by Brett Hickey, is a specialized asset management firm centered around the lower middle-market sector.

They focus exclusively on this segment, particularly targeting established U.S. lower middle-market operating companies that exhibit EBITDA between $2-15 million. Their investment strategy encompasses a variety of approaches to support these businesses.

One component involves direct debt and equity investments, providing capital directly to companies for growth and development. Additionally, they engage in strategic limited partnership commitments with fund managers, including SBIC funds, which allows for a diversified approach to their middle-market investment strategy.

Furthermore, Star Mountain purchases LP positions as a secondary buyer, therefore engaging in secondary investments which often allow for liquidity and portfolio management for existing investors.

The firm touts an ecosystem that involves collaboration with businesses and managers, offering more than just capital by fostering alignment of interests and a network of value-added resources.

With a minimum and maximum fund investment size of $3,610,000, they ensure a specific focus rather than a broad, generalized investment strategy. Through their Collaborative Ecosystem, they harness large market resources to bridge the gap in the underserved lower middle-market. Their commitment to social responsibility and innovation is reflected in their charitable actions, evident from their foundation and commitment to job creation.

In media and community news, they share insights on private credit markets, operational strategies during economic downturns, and further opportunities within non-bank lending spaces. Star Mountain also emphasizes their STAR values – a core guide to their operations and corporate culture – and solidify their identity through community engagement, such as their internship program and partnerships with organizations like Big Brothers Big Sisters.