Star Mountain Capital, established in 2010, is a nearly $1.5 billion of AUM specialized asset management firm focused exclusively on the less efficient U.S. lower middle-market by investing debt and equity directly into established operating companies, making strategic investments into fund managers, and purchasing secondary fund positions. “Star Mountain is a leading investment partner bringing large market resources and expertise to smaller businesses. These small businesses typically have revenues of over $10 million and EBITDA of under $20 million, often referred to as the lower middle-market, one of the largest segments of established private businesses in the U.S.,” said Brett Hickey, Founder & CEO of Star Mountain.
Star Mountain has built a distinctive platform to provide highly selective (investing in only approximately 2.5% of the businesses it looks at) and diversified access for investors to the return premium that Star Mountain believes is able to be systematically generated from businesses that are established but not large enough to be of interest to the larger investment firms. Star Mountain’s mission is to generate excess returns relative to risk “alpha” for investors and to create positive economic impact and job growth in an aligned manner.
Star Mountain’s team blends the best practices gained from experience at leading institutional investment firms with the expertise of investing in smaller private businesses. Star Mountain’s innovative, data-driven platform enjoys a nationwide local presence in over 20 cities to help in its aim to efficiently originate, evaluate, and monitor high-quality businesses. The firm is 100% employee-owned, with 100% of the team participating in the profits of the funds, which the firm believes furthers the culture of alignment of interest focused on maximizing both capital protection and returns. Star Mountain makes direct investments generally ranging from $10 million to $100 million per company. Star Mountain also provides investors with discrete and customizable liquidity solutions by making secondary purchases of individual assets or limited partnership investments in smaller private equity and private credit funds.
Technology is making significant shifts in the way companies are doing business, faster in some industries than in others. The impact of technological change in the alternative investment industry is no different, but it has generally occurred at a slower rate than in some other sectors. As an innovator and investor in established small and medium-sized private companies, Star Mountain’s technology is at the core of its business model, with principles such as innovation, collaboration, and long-term investment in team and technology.
Star Mountain’s mission is to generate excess returns relative to risk “alpha” for investors and to create positive economic impact and job growth in an aligned manner.
The company has been investing in technology from the beginning to build a competitive edge, including having a full-time Chief Technology Officer, to invest in innovation, scalability, and user experience for the benefit of all stakeholders. Star Mountain has invested heavily in systematic processes, claiming its data-driven approach has competitive advantages across its business including sourcing, underwriting, and monitoring investment opportunities to managing risk and reporting to its shareholders. Star Mountain believes the firm is built to specifically address the challenges and opportunities of investing in established smaller companies.
Star Mountain’s Founder & CEO, Brett Hickey, is familiar with discipline and hard work. Mr. Hickey grew up in Northern Canada with a father who was a high school teacher, paid for college by working on the oil drilling rigs, was a Canadian gold medalist in speed skating and worked part-time while completing a joint degree in finance and accounting at one of Canada’s premier universities, McGill. He subsequently became an alumnus of Harvard Business School by completing the executive Owner/President Management (OPM) program and is currently on the global board of Harvard Alumni Entrepreneurs. As a member of Young Presidents’ Organization (YPO) for over a dozen years, life-long learning is both a passion of Mr. Hickey and ingrained at Star Mountain. Culture is a critical component of the firm’s long-term success and has been named one of the best places to work by both Pension & Investments and Crain’s New York Business. Inspired by Mr. Hickey losing his mother to cancer at the age of 6, the Star Mountain Charitable Foundation is dedicated to economic development and cancer research.
Amidst the COVID-19 pandemic, Star Mountain Capital and its affiliated Star Mountain Charitable Foundation have supported local New York City charities during this time of need and remain connected with its stakeholders via digital media assets. Star Mountain’s team was already experienced in working remotely and via webinar given its full-time team members and network of senior advisors/operating partners is spread across the country in over 20 cities. Star Mountain is proud to have recently completed its 100th overall investment and is actively helping companies grow and add jobs. Moving forward, Star Mountain remains optimistic about its future and that of its marketplace including the benefits from the aging population seeking strategic transition and acquisition capital.
Note: Detailed award eligibility requirements for Crain’s can be found here and for Pensions & Investments here.
Disclaimer: This does not constitute an offer to sell or a solicitation of an offer to purchase interests in any investment product. https://starmountaincapital.com/contact-us/careers/
