A Range of Private Credit Solutions
We aim to provide senior secured loans to established, recession-resilient U.S. lower middle-market businesses. Our capital is designed to help them grow into the larger, more efficient middle-market.
One Tranche, Several Structures
All senior secured. Choose the structure and return profile that fits your mandate.
Senior Loans
First lien senior secured lending built for consistent current income, available in both evergreen and finite-life structures.
- Income-oriented and floating rate
- Periodic liquidity options in evergreen structures
Credit Solutions
Senior secured loans paired with equity upside through warrants and structured equity, for a total-return rather than pure-income objective.
- Senior secured with equity participation
- Value-added lending approach
Custom Structures
Separate accounts and dedicated mandates across the private credit platform, under your own governance and reporting.
- Institutional mandates
- Insurance-dedicated and tax-aware options
How We Lend
Four things define the strategy: what we look for, where we look, how we find it, and how we underwrite it.
We originate senior secured loans directly to established lower middle-market companies that are underserved by banks and larger credit funds. Floating-rate structures and conservative leverage aim to protect capital while generating consistent income across cycles.
| Criteria | Detail |
|---|---|
| Company size | $5–50M EBITDA, and larger for borrowers scaling into the middle-market |
| Position | First lien senior secured |
| Rate | Predominantly floating |
| Leverage at entry | Below 4.0x debt-to-EBITDA |
| Geography | United States |
| Sponsorship | Both sponsored and non-sponsored |
| Target industries | Recession-resilient, essential services across 40+ industries |
| Avoided industries | Cyclical and speculative sectors, including oil & gas, retail, real estate, AI / software and cryptocurrency |
A Nationwide Origination Platform
Regional coverage across the United States puts our team in the same markets as the companies we finance, rather than waiting for deals to reach New York.
The Collaborative Ecosystem®
Sponsors, intermediaries, senior advisors and operating partners feed proprietary opportunities that often never reach a broad auction.
Sponsored and Non-Sponsored
Star Mountain believes non-sponsored lending may roughly double the addressable universe and reduce competition per deal.
A Data Advantage That Compounds
Over fifteen years of proprietary lower middle-market data means we have often seen the company, the sponsor or the industry before the opportunity arrives.
One of the Largest Teams in the Lower Middle-Market
~150 dedicated professionals, with experience from leading financial institutions, focused exclusively on this segment.
A Deep Senior Advisor Network
40+ senior advisors and operating partners bring direct operating experience in the borrower’s industry into the diligence process.
Custom-Built Technology
Proprietary, AI-enabled systems support screening, credit analysis and ongoing portfolio monitoring at a scale manual processes cannot match.
Downside-First Structuring
First lien focus, strong covenants, meaningful equity cushions and active monitoring from close through repayment.
A Private-Equity Approach to Private Credit
We underwrite and support these companies the way an equity owner would, because we believe the same discipline that creates value also protects the loan.
Portfolio Value Optimization
A structured program applied across the portfolio: operational benchmarking, KPI reporting, and targeted introductions to customers, talent and capital.
Getting Middle-Market Ready®
Our proprietary program helping smaller businesses build the systems, reporting and governance they need to scale into the middle-market.
Operating Partners at the Table
Board-level involvement and access to senior advisors and operating partners with direct experience in the borrower’s industry.
Equity Upside Where Earned
Warrants and structured equity alongside the loan in our value-added funds, aligning us with the company’s growth rather than only its coupon.
Diversification
By Industry
By Geography
“Other” includes companies with less than 3% exposure.
For illustrative purposes only, actual results may vary.
From the Factory Floor and Beyond
Our research on this market, and the companies behind it.
Lower Middle-Market Private Credit: A Source of Alpha and Low Market Correlation with Potential Tax-Advantaged Equity Upside
How increased capital inflows may have reshaped private credit, and why Star Mountain believes the lower middle-market may offer opportunities for disciplined investors.
How a ~5 bn GP Rebuilt Underwriting Operations for the AI Era and Launched GPEX™
Star Mountain believes rebuilding its underwriting around AI and unified data, now powering its GPEX™ platform, has freed its team to spend more time on investment analysis.
Explore the Full Spectrum
See how senior loans and credit solutions sit alongside our private equity and secondaries strategies.
¹ Values are as of 6/30/26.