Star Strong Capital

Why a hybrid Private Credit approach is beneficial to investors? It creates portfolio diversification. While direct lending is the largest category of the $1.3T Private Credit Market, Star Strong Capital’s investments in Specialty Finance assets are intentionally designed to mitigate potential concentration within the overall portfolio while securing risk appropriate yield. As funds conjugate, chasing the same lower middle market deals, this competition has hurt the return profile of direct lending. Many managers are seeking alternative growth opportunities as they search for higher yields. Our stance has always been about risk mitigation. As rising rates affect loan books, default rates for senior loans have nearly tripled. Most private-credit funds predominantly hold floating-rate loans, resulting in a change of the interest-coverage ratio, which can increase the likelihood of a default. As there has been a resurgence in the discussion of a recession, it is even more important to risk control portfolios. Turns out diversification is a good thing… #RiskManagement #HybridApproach #PrivateCredit #FloatingRates

Critics are quick to say direct lending has grown too fast, worrying investors may misjudge the balance of risk/reward. Pitchbook reported the average loan size is now $80M, which is much higher than the standard loan size in bank-dependent borrowers, heightening concerns of an environment with increased loan defaults. Cliffwater noted that private debt stands out in expected total return and risk-adjusted return when compared to other asset classes and expects an increase of allocations due to the expected returns for US stocks, real estate, and weak fixed income returns over the past two years. Regardless, Private Credit is compelling, notably delivering an attractive risk/return profile as the sector offers diversification, low correlations to public markets, and relatively high returns. Our focus is an important diversifier, as we make loans into an underbanked part of the capital markets in advance of the scale required for eligibility with other firms. Private spreads show greater pressure at the top, offering greater upside and bucking the general consensus that bigger is safer and better. #PrivateCredit #DirectLending #StarStrongCapital

Thank you to the investors who met with us at iConnnections Miami Global Alts. It was fantastic to connect face-to-face, and we were proud to share how Star Strong Capital is delivering Specialty Finance and Direct Lending private credit to Lower Middle Market “Aspirational” businesses operating in a unique white space within the capital markets. #GlobalAlts #iConnections #PrivateCredit #DirectLending

Let’s meet! Star Strong Capital provides flexible capital solutions to an underbanked or overlooked part of the capital markets. Our capital solutions provide necessary debt financing in advance of the scale required for eligibility to bridge a funding gap for businesses which are the backbone of the U.S economy. Hope to see you next week in Miami! #GlobalAlts #iConnections #PrivateCredit #DirectLending

As most Private Credit firms conjugate, investing in Lower Middle Markets, Star Strong Capital instead looks to provide flexible capital solutions to Lower Middle Market “Aspirational” businesses by offering debt financing in advance of the scale required for eligibility with other firms. For investors, this means limited correlations to other Private Credit strategies! Let’s meet! #GlobalAlts #iConnections #PrivateCredit #DirectLending

Star Strong Capital provides debt financing in advance of the scale required for eligibility with other Private Credit firms, to bridge a funding gap for businesses which are the backbone of the U.S economy. Important for both the borrower and investor! Let's meet! #GlobalAlts #iConnections #PrivateCredit #DirectLending

Here's to a year of growth, success, and breakthroughs. As we welcome 2025, we look forward to new opportunities and continued success together. Wishing you a bright, prosperous, and fulfilling year ahead. Happy New Year from Star Strong Capital! #NewYear2025 #specialtyfinance #privatecredit

Star Strong Capital’s Opportunistic Credit Strategy During our Fireside Chat with Spring H., we explored the opportunistic nature of Star Strong Capital’s private credit strategy. Q: What are the top three things allocators should remember about Star Strong Capital? Spring highlighted that Star Strong Capital is passionate about solving capital requirements in underserved markets. Their opportunistic credit strategy adapts to changes in the market, and their diversified portfolio mitigates risk across industries and geographies. Lastly, their ability to deliver tangible distributions helps investors see real returns. Want to learn more about their strategy? Email us to request the full Fireside Chat. #privatecredit #opportunisticcredit #diversification

The Importance of Ongoing Portfolio Monitoring In our Fireside Chat with Spring H., we discussed how Star Strong Capital continually monitors its private credit portfolio to manage risk. Q: How does Star Strong monitor its portfolio, and what lessons have you learned from past defaults? Spring explained that Star Strong Capital leverages regular, detailed reporting from portfolio companies across various sectors. This allows them to quickly identify potential risks and address them proactively. Their sector-agnostic approach and experience enable them to recognize patterns of behavior and offer tailored guidance to help companies succeed. Email us to request the full Fireside Chat and learn more. #portfoliomanagement #privatecredit #riskmitigation

Happy Holidays from Star Strong Capital! Wishing you a holiday filled with warmth, happiness, and wonderful celebrations with your loved ones! #happyholidays2024 #specialtyfinance #privatecredit