Star Mountain Completes its 100th Investment – Continuing to Provide Capital to U.S. Small Businesses During the Pandemic

·7-min read

Star Mountain Capital, LLC ("Star Mountain"), a specialized investment manager focused on the goal of generating alpha for its clients from the complex, labor intensive and underserved U.S. lower middle-market (established small and medium-sized private businesses that generally have at least $15 million of annual revenues), has continued to grow its team and support smaller businesses. During this pandemic, Star Mountain has stayed active supporting its portfolio companies and providing debt and equity capital to new attractive private businesses, recently completing its 100th private investment.

"I’m grateful for our investors who continue to support us and to our aligned and dedicated team who have helped us assist numerous companies grow, including by financing strategic acquisitions. We are actively investing in new attractive private businesses, recently helping us achieve the milestone of our 100th investment," says Star Mountain Capital Founder & CEO, Brett Hickey. "With the aging demographic and challenged economic environment we anticipate financing even more mergers and acquisitions as well as strategic organic growth initiatives, helping protect and grow American jobs."

Since 2010, Star Mountain has made 79 direct investments in private U.S. small and medium-sized businesses and 21 secondary / fund investments within its Collaborative Ecosystem ®, exclusively focused on the U.S. lower middle-market. "The data-driven insights we are able to generate from our Collaborative Ecosystem help us make better investment decisions and also helps our team develop," says Chris Birosak, Chairman of Star Mountain’s Investment Committee. Chris, like other members of the senior investment team, helps bring large market expertise to smaller businesses with over 30 years of leveraged finance, private equity, and banking experience. His distinguished career includes being the former Co-Head of BAML Capital Partners (the internal private equity investment group of Bank of America / Merrill Lynch) where he oversaw approximately $6 billion of private equity investments. Earlier in his career Chris was also a former Managing Director in leveraged finance at Merrill Lynch where he led the underwriting of over $15 billion in M&A and leveraged buyout financings and co-founded Merrill Lynch’s Loan Syndication Group.

With nearly $1.5 billion in assets under management as of the end of September and over 40 team members, Star Mountain is dedicated to this large market of underserved smaller businesses with its specialized business model established to address the challenges and opportunities of supporting these companies1. As part of its commitment, Star Mountain has trademarked Investing in the Growth Engine of America ®.

As it expands with the goal of adding value to private business owners across the U.S., Star Mountain opened new offices in Dallas, Texas and Denver, Colorado this year. Star Mountain and its Charitable Foundation have been supporting local New York City charities during this time of need and are keeping connected with stakeholders via digital media assets. For example, Star Mountain’s Chief Risk Officer, Dr. Lev Borodovsky (former Chief Risk Officer of GSO / Blackstone), has been publishing regular content on the macroeconomic impact of the pandemic on Star Mountain’s YouTube channel.

Star Mountain continues to grow its team including welcoming two former interns as full-time analysts after their university graduations in May as well as continuing its annual full-time summer internship program despite the pandemic. Star Mountain continues to seek additional full-time team members and senior advisors / operating partners as assets under management continue to grow.

Star Mountain was recently named a Best Places to Work by Pensions & Investments and named one of the 2019 Best Places to Work by Crain’s New York Business.

ABOUT STAR MOUNTAIN

Investing in the Growth Engine of America ® – Star Mountain Capital is a specialized asset management firm focused on investing in the large and underserved U.S. lower middle-market of companies with typically over $15 million of annual revenues. Star Mountain’s distinctive business includes a custom-built media and technology platform and brings established, large market resources to smaller businesses as a value-added investment partner.

Founded in 2010, 100% of the firm is owned by the senior team and 100% of full-time U.S.-based employees participate in the carried interest profits generated by the firm. Taking a data-driven approach, the senior team continues to make long-term investments in the business as seen by its experienced team, technology platform, processes and procedures.

Star Mountain’s team has experience from some of the world’s leading financial institutions including Brian Finn, Chairman of Star Mountain, former President of Credit Suisse First Boston overseeing a global investment banking business of approximately 18,000 employees and was also formerly the Head of Credit Suisse’s $100 billion AUM alternative asset management business that included private credit investment specialist GSO Capital, later acquired by The Blackstone Group (NYSE: BX), and secondary / fund investment specialist Strategic Partners, also later acquired by The Blackstone Group. In addition to Credit Suisse (NYSE: CS), senior team members have held senior roles at firms such as Goldman Sachs (NYSE: GS), UBS (NYSE: UBS), Merrill Lynch, BMO Financial (NYSE: BMO), and Citigroup (NYSE: C).

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 noteworthy small and medium-sized business career opportunities across the country, including within Star Mountain’s portfolio.

Note 1: AUM defined as capital commitments plus committed asset based leverage.

Note: 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.

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. Detailed eligibility criteria can be found here: https://www.bestplacestoworknyc.com/eligibility-criteria

Pensions & Investments ("P&I") partners with a company called Best Companies Group on the survey that is behind the Best Places to Work program. P&I works with them to develop the parts of the questionnaires that are specific to money management. Beyond those questions, P&I’s survey partner develops and scores the surveys. P&I only sees anonymous responses to questions, identified only by the company name. If Best Companies determines that a firm scores above the threshold cutoff that they have set for a firm to be considered a Best Place to Work, then P&I names them on their list. P&I uses the same cutoff for all firms but ranks the firms against their peers by number of employees. P&I only ranks the top 5 firms per size category and then lists the rest in alphabetical order. There is no fee to participate in the Best Places to Work in Money Management program. P&I’s partner, Best Companies Group, does offer some of the results of the surveys for sale to each participating company, but that has no influence on how a company is ranked or whether or not they are recognized as a best place to work. Detailed eligibility criteria can be found here: https://www.bestplacestoworkmm.com/eligibility-criteria

View source version on businesswire.com: https://www.businesswire.com/news/home/20201029005107/en/

Contacts

Star Mountain Capital, LLC
John Polis
media@starmountaincapital.com