Star Mountain Capital, an employee-owned investment firm with ~$5 billion in assets under management (AUM), closed Star Mountain CFO I, a collateralized fund obligation providing insurance companies and institutional investors with investment grade-rated access to Star Mountain’s direct lending strategy. Star Mountain partnered with Evercore on the transaction.
CFO I was structured to accommodate investors as both horizontal buyers and vertical strip investors, with debt tranches rated by Kroll Bond Rating Agency (KBRA). The vehicle provides exposure to a diversified portfolio of U.S. lower middle-market investments across Star Mountain’s direct lending funds, focused on established businesses in recession-resilient industries with robust covenant protections and zero direct exposure to software companies, real estate or energy.
“We are pleased to have partnered with Evercore to complete Star Mountain CFO I, which reflects growing institutional demand for rated, structured access to the U.S. lower middle-market,” Brett Hickey, founder and CEO of Star Mountain Capital, said. “This transaction demonstrates our continued commitment to developing innovative solutions that meet investors where they are, and we are proud of the strong execution and institutional interest this offer has received.”
CFO I has a diversified investor base across blue chip institutional investors and wealth management platforms. Star Mountain continues to develop rated structures for its direct lending and secondaries strategies.
