Star Mountain Capital, a specialized investment manager with approximately $2 billion in assets under management, closed its $290 million (including assumed SBA leverage available) SBIC fund with support from new and existing limited partners, including banks, asset management firms, family offices and individuals, including multiple business owners and senior executives of U.S. lower middle-market companies. This fund provides Star Mountain with additional capital to make debt and equity investments in 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 consists of institutional investor Magnetar and two multi-billion-dollar banks, Blue Ridge Bank and Commercial Bank of California.
“We are honored and delighted to have such strategic and high caliber investors to partner with us and the SBA in our SBIC fund,” Brett Hickey, founder and CEO of Star Mountain Capital, said. “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,” Praveen Saxena, portfolio manager at Magnetar, said.
“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,” Brian K. Plum, president and CEO of Blue Ridge Bank, said. “Star Mountain and the SBIC program is a winning combination for investors, businesses owners and the U.S. 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,” Ash Patel, CEO of Commercial Bank of California, said.
Winston & Strawn and Lowenstein Sandler advised Star Mountain Capital on this transaction.
