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Insights

Diversified Allocations: Industries We Lean Into & Businesses We Serve

Star Strong is a diversified asset allocation strategy, generating consistent interest income with low volatility. We provide flexible and opportunistic capital solutions to real economy businesses, working with borrowers, sponsors, advisors, and investors to accelerate the growth of each business. We underwrite to the people of the business and all available assets, focusing on partnership and transparency.


Real Economy

This is the space we spend the more time and energy. For us, we believe in meaningful EBITDA and a healthy business. The company will have a multiple at exit, but it will be based on revenue generated in its lifetime and the opportunity it has to continue earning revenue. The real economy concerns production, purchase, and flow of goods and services (like oil, bread and labor, transportation, clothing) within an economy.

Manufacturing

This industry involves the large-scale production of goods using machinery. It includes sectors like automobiles, pharmaceuticals, textiles, technology hardware, etc. Star Strong looks at manufacturing as part of the lifeblood of America. We seek companies that produce tangible goods, ranging from small components to large machinery. The manufacturing sector has been experiencing shifts towards automation and digitization, and trends like Industry 4.0, involving the Internet of Things (IoT) and data analytics, have been shaping this industry.


Utilities

The utilities sector comprises companies that provide basic amenities, such as electricity, natural gas, water, and sewage services. This is often a stable, high-dividend-paying sector because these services are always in demand. Any utility company within Star Strong Capital's portfolio would likely be expected to deliver steady, reliable returns. The sector is evolving with a growing focus on renewable sources of energy and smart grid technologies.


Specialty Finance

This refers to financing activity that falls outside the realm of traditional banking. It includes companies involved in mortgage lending, structured finance, loan servicing, micro-lending, peer-to-peer lending, etc. Firms in Star Strong Capital's portfolio in this industry would be involved in niche lending or financial servicing. In the current environment, there's a trend towards digital transformation and leveraging AI for risk assessment and decision-making.


Medical

This industry encompasses companies that provide healthcare services, manufacture medical equipment or drugs, or are involved in research and development. In the portfolio, this could include biotech companies, pharmaceuticals, healthtech startups, hospitals, or health service providers. The industry is seeing a significant push towards telehealth, personalized medicine, and the use of AI and machine learning in diagnosis and drug discovery.


eCommerce

The eCommerce industry involves buying and selling goods or services using the internet, and transferring money and data to execute these transactions. It ranges from retail to services and digital products. Within the portfolio, these would be companies that operate online marketplaces or provide ancillary services to e-commerce operations. The market is currently shifting towards mobile commerce, personalized shopping experiences, and the integration of technologies such as AR/VR. >> Read more about Biion

Tech

The tech industry is broad and covers a multitude of sub-sectors including software development, hardware manufacturing, IT services, cloud computing, AI and machine learning, and more. Star Strong Capital's portfolio may include tech startups, software companies, hardware manufacturers, etc. The sector continuously evolves with advancements in AI, machine learning, cybersecurity, quantum computing, and more.


The performance quoted represents past performance. Past performance does not guarantee future results.


Not all investments made by Star Strong Capital LLC should be expected to be profitable.


The information and opinions provided herein should not be taken as specific advice on the merits of any investment decision. Investors should make their own decisions based on such investors’ own review of publicly available information and should not rely on the information contained herein.

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