AI Issue 12 2017

Acquisition International - December 2017 43 Scaling Star Mountain to Reach Success although the rate of implementation and change varies. The impact of technological disruption in the alternative investments industry, while it has occurred at a slower pace than other industries, is no different. Brett talks us through Star Mountain’s approach to embracing the latest technological developments and how the firm works to always offer a truly cutting-edge service. “A common misconception is that you must be a large firm to have a technology strategy. As an innovator and investor in established private small and medium-sized businesses, technology for Star Mountain is at the core of our operating model with values such as innovation, collaboration and investment in long-term growth. From the beginning, we invested in technology to build our competitive advantage, including adding a full-time Chief Technology Officer as a partner, to invest in the sustainability, scalability and user experience for the benefit of our stakeholders. Star Mountain has invested into technology and systems out of the belief that technology can provide significant competitive advantages in sourcing investment opportunities, underwriting, monitoring investments, adding value to portfolio companies, managing risk and investor reporting.” Although technology and a strong investment approach have been vital to the success of Star Mountain, Brett is also keen to outline how the firm’s collaborative, supportive internal culture has also played an important part in driving the firm to the strong position it is in today. “Our culture at Star Mountain is one of the most important drivers of our success. The real secret sauce of any successful organization is how its people operate, think and collaborate. I like to call it ‘cultural capital’. Point to any successful company, and often, you will find an abundance of strong cultural capital sustaining it. “Great cultural capital inside companies is like a fingerprint; no two are the same, and what works for one may not work for another. But we believe they all share certain characteristics. They have aligned individual goals with that of the company – an alignment of interests – that in our case is accomplished by including 100% of our employees in the carried interest of our funds. Other things are more esoteric – a desired sense of purpose, passionate focus on technology to improve our operations, and support of outside-the-box thinking about what we do. Also, we focus on the things that make Star Mountain a comfortable and engaging place to work, like fresh and healthy food, standing desks, lots of windows and sunlight, etc. “Personally, I believe this nexus between business and purpose is where most successful organizations thrive. In fact, a truly great corporate culture is the greatest single asset of a truly great business. Organizations that focus on creating the most cultural capital possible are usually the ones that end up with the most sustainable, scalable and rewarding businesses over time.” Overall, Brett is optimistic about the future of Star Mountain as she details the developments that the company has in store. “Looking ahead, we are very excited by what the future holds for our business. We have a large market to execute against but that is what we were built for, which can be summarized by four core elements. First, we invest defensively in established, smaller companies with low leverage. Secondly, we get paid for work where we concentrate on more labour-intensive loans to private businesses that have complex capital needs, such as financing an acquisition. Third, we help these companies grow, employ more people and create value in their communities and the economy. Lastly, with respect to team, our most important asset, we focus on high quality people who want purposeful and engaged lives – we find these people maximize long-term value as aligned partners in what we do. “All of these developments will help us to ensure that Star Mountain continues to grow and prosper, providing our investors and the firms we invest in with the support they need to grow and succeed.”