Michael Karangelen, Former CEO of North America for Investindustrial ($10+bn AUM PE Firm), Joins Star Mountain Capital as Member of the Firm’s Executive and Investment Committees

Key Terms

assets under management financial

Assets under management (AUM) is the total value of all the investments that a financial company or fund is responsible for overseeing on behalf of its clients. It’s like a big bucket that shows how much money the firm is managing for people or organizations. A higher AUM often indicates a larger, more trusted company, and it can influence how much money they earn and the services they can offer.

direct lending financial

Direct lending is when investors or investment funds lend money straight to companies instead of those companies borrowing from traditional banks. It matters to investors because it can offer higher interest income than public bonds or bank deposits, much like lending money to a neighbor for a premium, but it also carries greater credit risk and lower liquidity since the loans are often private and harder to sell.

structured equity financial

Structured equity is a customized form of company financing that blends ordinary shares with extra features—such as priority on payouts, fixed-like payments, or rights to buy more stock later—designed to balance upside potential and downside protection. Think of it as a hybrid between shares and a safety net: it can limit losses for some investors while still letting them benefit if the company grows, so it affects ownership percentages, payout order in a sale, and potential returns.

senior secured credit financial

A senior secured credit is a loan or bond that must be repaid before other debts and is backed by specific assets that the lender can seize if the borrower defaults. Think of it like a mortgage on a house: the lender has first claim on the pledged asset, which makes this debt safer for investors and typically carries a lower interest rate; it matters because it affects potential recovery in a default and relative risk in a company’s capital structure.

secondary investment activities financial

Secondary investment activities are purchases or sales of existing stakes in assets—such as shares, loans, or fund interests—on the secondary market rather than directly from the original issuer. For investors this matters because secondary deals can provide quicker access or exit, different pricing (sometimes discounts or premiums), and clues about market sentiment and liquidity without relying on new issuances. Think of it like buying a used car instead of ordering a new one: faster, often cheaper, but with different risks and information.

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NEW YORK--(BUSINESS WIRE)-- Star Mountain Capital, LLC ("Star Mountain"), a rapidly growing, employee-owned investment firm with ~$4.5 billion in assets under management (“AUM”), is pleased to announce that Michael Karangelen has joined as Managing Director and a member of the firm’s Executive Committee and various Investment Committees. Mr. Karangelen’s relationship with Star Mountain’s team dates back decades, including prior collaborations at Goldman Sachs and Investindustrial.

Michael Karangelen, Managing Director, Executive Committee and Investment Committee Member of Star Mountain Capital.

With more than three decades of experience building and overseeing private credit and private equity platforms, Mr. Karangelen will support the continued expansion of Star Mountain’s direct lending, structured equity, private equity and secondary investment strategies. As a member of the firm’s Executive and Investment Committees, he will contribute to firm-wide strategy, capital allocation and portfolio oversight while further strengthening the firm’s origination capabilities and underwriting discipline.

Star Mountain’s investment platform includes a private equity-oriented approach to its direct lending. In its lending business, the firm often pairs senior secured credit with structured equity participation and active engagement alongside management teams, supported by a dedicated Portfolio Optimization group focused on strategic and operational execution. That same company-level underwriting discipline and hands-on perspective extends to the firm’s secondary investment activities, where evaluating assets through a fundamental, bottom-up approach provides deeper insight into business quality, risk and long-term value potential. By integrating credit discipline, equity participation and active portfolio support across strategies, Star Mountain believes it has built a differentiated platform within the lower middle-market that combines downside protection with the potential for long-term value creation in a manner distinct from traditional credit or secondary investment models.

"We believe that optimizing the alpha and low market correlated return opportunities for investors in the lower middle-market requires skilled senior executives who have helped companies optimize value and worked through downturns, not just the ability to deploy capital,” said Brett Hickey, Founder & CEO of Star Mountain Capital. “Our model combines senior secured lending, structured equity participation and hands-on portfolio support to help management teams succeed while protecting investor capital. Michael’s experience building and leading private equity platforms strengthens this approach. His background enhances our ability to evaluate companies with a private equity level of rigor, whether we are acting as a lender, structured equity investor or secondary investor. This depth of perspective reinforces the potential structural advantages of our platform and our commitment to disciplined underwriting and long-term value creation.”

"I've followed Star Mountain's evolution closely throughout my long-standing relationship with Brett and have a deep respect for the differentiated platform, strong culture and commitment to partnership the team has built," said Mr. Karangelen. “I was drawn to Star Mountain’s distinctive approach within the lower middle-market. The firm’s ability to combine credit discipline, structured equity participation and active portfolio engagement across both direct and secondary strategies is distinct within the lower middle-market. I look forward to contributing to the continued growth of this integrated platform and supporting its long-term partnerships with investors.”

Mr. Karangelen has more than 35 years of experience across private equity, private lending, corporate finance, investment banking and board governance with leading global institutions. Over the course of his career, he has led platform acquisitions, corporate carve-outs, multi-year build-ups, operational transformations and cross-border transactions across the business services, consumer, manufacturing, retail, communications/media and financial services sectors.

Prior to joining Star Mountain, Mr. Karangelen was the co-founder and Chief Executive Officer of Alakai Group, a private equity firm focused on the longevity and healthspan sector. Selected members of the Alakai team and its sector expertise will integrate into Star Mountain’s broader investment platform, enhancing thematic sourcing capabilities, operating relationships and value-creation resources across the firm’s direct debt and equity investments while maintaining disciplined underwriting standards.

Prior to Alakai, Mr. Karangelen served as CEO of Investindustrial North America, where he built and led the firm’s U.S. investment business. He recruited and developed a fully integrated organization encompassing investment professionals, portfolio support, investor relations and back-office functions. He architected and executed the firm’s U.S. strategy, overseeing platform acquisitions, add-on investments and cross-border transactions. As a member of Investindustrial’s global Investment Committee, he participated in the oversight of approximately $11 billion of assets under management, working with investors across the U.S., Europe and Asia. He also supported Investindustrial’s European portfolio companies as they expanded into the U.S., driving growth through add-on acquisitions, organic initiatives, strategic partnerships and the development of U.S.-based operating teams.

Prior to Investindustrial, Mr. Karangelen was a Managing Director at TowerBrook Capital Partners, where he focused on middle-market control and structured minority private equity investments within a global private equity platform managing approximately $9 billion of assets under management. Earlier, he was a Partner at Brera Capital Partners, founded by the former President of Clayton, Dubilier & Rice, and a member of the team that, in 1999, raised what was, at the time, one of the largest first-time private equity funds. He also served as a senior investor at Stolberg Partners, a lower middle-market investment firm, where he led control private equity investments and multi-year build-up strategies in founder and family-owned businesses. Across these firms, he has executed more than twenty platform investments and value-creation-driven add-on acquisitions.

Mr. Karangelen also brings substantial operating experience. He was a private equity investor supporting the formation of Ladder Capital (NYSE: LADR), a private lending and finance company with approximately $1.5 billion in market capitalization, and served as its initial Chief Financial Officer, playing a key role in establishing the company’s capital structure and financial foundation during its formative stage. He previously served as Chief Financial Officer of GAB Robins, a business services company with approximately $500 million in annual revenues, and as Head of Business Development at Eschelon Telecom, a communications services company. At Eschelon, he led the sourcing, execution and integration of multiple add-on acquisitions and helped create meaningful value, scaling the company into a larger communications enterprise which resulted in a successful sale to a large financial sponsor.

Earlier in his career, Mr. Karangelen was an investment banker at Goldman Sachs in New York and S.G. Warburg in London, advising clients on mergers and acquisitions and corporate finance transactions.

In addition to his professional career, Mr. Karangelen has been deeply involved in volunteer leadership and philanthropy. He has been an active Cornell University alumnus for more than 35 years and has served as a Trustee (now emeritus) of the Student Agencies Foundation since 1988, including 12 years as its President. The foundation owns Student Agencies, Inc., the oldest student-run company in the United States, founded in 1894. He founded, designed and led the capital campaign for the Cornell eLab Accelerator, supporting student entrepreneurship. He is a member of the Advisory Board of the Stanford Center on Longevity and was one of the initial Trustees of The Bedford Playhouse, serving during the period in which the board conceived, designed, constructed and raised capital for the creation of the theater as a cultural and community institution. He has also served as a Trustee of Public Prep, a network of public charter schools.

Mr. Karangelen earned a BA in Economics from Cornell University.

About Star Mountain Capital

With ~$4.5 billion in AUM (committed capital including debt facilities as of 1/31/2026), Star Mountain specializes in providing scalable and data-driven investment solutions across two core strategies:

• Direct Investments: Providing debt and equity capital to established lower middle-market businesses.
• Secondary Investments: Acquiring LP interests, direct assets, and making primary LP commitments.

Star Mountain’s investors include public and private pensions, insurance companies, commercial banks, endowments, foundations, family offices and high-net-worth individuals. Employee-owned and sharing profits with 100% of its U.S. full-time employees, the firm prioritizes alignment of interests to maximize value for stakeholders.

Since 2010, Star Mountain has completed over 100 direct platform investments and 50 secondary/fund investments in the North American lower middle-market. The firm has been recognized as one of the Inc. 5000 fastest-growing private companies and a Best Place to Work by Crain’s New York Business and Pensions & Investments.

For more information, visit www.starmountaincapital.com.

Legal Disclaimer:

This press release does not constitute an offer to sell or a solicitation of an offer to purchase interests in any investment product. Awards and recognitions by third-party rating agencies, companies or publications should not be interpreted as a guarantee of future results or performance. They should not be considered as an endorsement, recommendation or referral of Star Mountain Capital or its representatives by any client or third party. Rankings published by media and industry organizations are based on information provided by the recognized advisor. Additionally, readers should understand that past performance is not indicative of future results. Award descriptions and selection methodologies may vary.

Awards and Recognition Disclosure:

Star Mountain Capital's awards and recognitions are based on third-party evaluations and criteria, which may be subjective. These honors do not imply a guarantee of future performance or an endorsement by current or past clients.

Ranking Methodologies:

• Crain’s Best Places to Work: Evaluations were conducted through a two-part process, assessing workplace policies, practices and employee satisfaction via surveys. Participation required a fee solely for survey processing purposes. More details are available at Crain’s eligibility criteria.
• Pensions & Investments Best Places to Work: Companies were evaluated based on surveys measuring employee engagement (75%) and employer policies (25%). Participation required a minimum of 20 U.S. employees and $100 million in discretionary assets under management. Further details can be found at P&I eligibility criteria.
• Inc. 5000 Rankings: Companies were ranked based on revenue growth from 2019 to 2022. To qualify, firms had to be U.S.-based, privately held and independent, with revenue thresholds of at least $100,000 in 2019 and $2 million in 2022. More details are available at Inc. 5000 criteria.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260223708090/en/

Media Contact:
John Polis – Media@StarMountainCapital.com

Source: Star Mountain Capital, LLC