Star Mountain Capital has announced the final close of Star Mountain CFO I. Star Mountain Capital operates as an employee-owned investment firm with approximately $5 billion in assets under management.
This is a collateralized fund obligation designed for institutional investors. The structure provides insurance companies with investment grade-rated access to Star Mountain’s direct lending strategy.
Star Mountain partnered with Evercore to complete the transaction. The deal addresses growing institutional interest in structured access to private credit. CFO I was structured to support investors as horizontal buyers and vertical strip investors. The vehicle provides exposure to a diversified portfolio of U.S. lower middle-market investments.
The portfolio spans Star Mountain’s direct lending funds. It focuses on established companies operating in recession-resilient industries. Furthermore, the investments include robust covenant protections. The portfolio has 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,” said Brett Hickey, Founder and CEO of Star Mountain Capital. “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.”
Institutional Demand Supports Structured Private Credit
Star Mountain CFO I has attracted a diversified investor base. The investor group includes blue chip institutional investors and wealth management platforms. The transaction expands Star Mountain’s offering within structured private credit. It also supports broader access to its direct lending strategy.
Star Mountain continues to develop rated structures for its direct lending and secondaries strategies. These structures respond to institutional demand for alternative investment opportunities. The company focuses on providing investment solutions across the U.S. lower middle-market. Its approach combines direct lending with secondary investment strategies.
The CFO I structure also provides investors with exposure to seasoned private credit assets. As a result, institutions can gain access to diversified lower middle-market investments.
Star Mountain Capital Expands Private Market Strategies
Star Mountain Capital manages approximately $5 billion in AUM. The figure includes committed capital and debt facilities as of July 31, 2026. The firm specializes in scalable and data-driven investment solutions. It operates across two core investment strategies.
Direct Investments: Star Mountain provides debt and equity capital to established lower middle-market businesses.
Secondary Investments: The firm acquires LP interests and direct assets. It also makes primary LP commitments.
Star Mountain’s investor base includes public and private pension funds. It also includes insurance companies, commercial banks and endowments. Foundations, family offices and high-net-worth individuals also invest with the firm. The company remains employee-owned and shares profits with 100% of its U.S. full-time employees. This ownership model supports the firm’s focus on stakeholder alignment. It also reinforces the company’s approach to maximizing long-term value.
Star Mountain Builds Long-Term Lower Middle-Market Experience
Since 2010, Star Mountain has completed more than 100 direct platform investments. The firm has also completed 50 secondary and fund investments. These investments span the North American lower middle-market. The company’s experience covers both direct lending and secondary investment opportunities.
Star Mountain has also received recognition for its growth and workplace culture. The company has appeared on the Inc. 5000 list of fastest-growing private companies. In addition, Crain’s New York Business and Pensions & Investments have recognized the firm as a Best Place to Work.
The closing of Star Mountain CFO I adds another milestone to the firm’s private credit strategy. The transaction combines structured finance with direct lending exposure. Moreover, the deal provides institutional investors with a rated structure for accessing U.S. lower middle-market private credit. Star Mountain continues developing investment solutions for institutional and wealth management investors.
The company also remains focused on expanding its direct lending and secondary strategies. Through these efforts, Star Mountain aims to address evolving demand across private markets.
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News Source: Businesswire.com
