FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


Star Mountain Capital Closes SBIC Fund at $290MM Including SBA Leverage

August 20, 2021, 07:04 AM
Filed Under: Private Equity News

Star Mountain Capital closed its $290 million (including assumed SBA leverage available) SBIC fund with support from new and existing limited partners including banks, strategic asset management firms, family offices and sophisticated individuals including numerous business owners and/or senior executives of U.S. lower middle-market companies. This fund provides Star Mountain with additional capital to make value-added debt and equity investments in established 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 (LPAC) consists of sophisticated institutional investors Magnetar (a ~$14 billion AUM global alternative asset manager), and two multi-billion-dollar banks, Blue Ridge Bank and Commercial Bank of California, both of which have intersections with the U.S. lower middle-market.

“We are honored and delighted to have such strategic and high caliber investors to partner with us and the SBA in our SBIC fund,” said Brett Hickey, Star Mountain Capital Founder & CEO. “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,” said Praveen Saxena, Portfolio Manager at Magnetar.

“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,” said Brian K. Plum, President and CEO of Blue Ridge Bank. “Star Mountain and the SBIC program is a winning combination for investors, businesses owners, and the US 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,” said Ash Patel, CEO of Commercial Bank of California.

Star Mountain was advised by Winston & Strawn LLP, a ~950 lawyer international law firm, and Lowenstein Sandler LLP, a 300+ lawyer national law firm.

Week's News

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.