Star Mountain Looks to Issue Bonds That Bundle Up Private Credit

Star Mountain Capital is planning to sell bonds backed by stakes in its private credit funds, according to people familiar with the matter.

The sale of senior and junior notes — via a so-called collateralized fund obligation — is likely to raise less than $500 million, the people said, adding the amount was still being decided.

Bespoke securitizations have been gaining in popularity as private fund managers look for ways to raise cash amid a slump in dealmaking and fundraising. Carlyle AlpInvest, GCM Grosvenor and Dawson Partners are among funds that have marketed CFOs this year.

New York-based Star ...