Stone Mountain Capital, Pfäffikon/London
Stone Mountain Capital is a London- and Pfäffikon-based alternative investment adviser founded in 2012. We provide European direct lending to the lower middle market and offer advice in research, structuring, public and private placements of private debt, private equity, real estate, and hedge funds to institutional investors.
The core philosophy is to keep the organisation streamlined and to deploy technology and outsourcing as much as possible in order to focus on our core activities of advisory and asset management.
Since 2015, we have used a set of external providers for regulatory compliance: an FCA-regulated entity that works with us as appointed representative across Europe, a US broker-dealer chaperoning agreement for US securities services, and distribution agreements with Swiss representatives for dealing with qualified investors.
For our hedge fund and general partner/private asset manager clients, we provide customised bottom-up financial structuring according to the investability and bankability criteria of institutional investors, LPs and loan providers, and we execute targeted capital introduction via our global network of institutional investors.
We structure and place firms, partnerships, AIFs, Ucits, offshore funds, closed-ended and public funds with exchange listing, ETI/ETN, and managed account structures across alternative investment sectors. For this we use the following service providers: ratings agencies, tax and regulatory advisers, and tier-one legal, audit and fund service providers.
Most funding vehicles are customised and built from scratch, with some deploying a platform with a predefined provider bundle. But branded, sizeable and established service providers with a proven ability to meet our GP and LP clients’ needs are our preferred choice.
For the distribution of research, we complement our in-house capabilities with providers such as Bloomberg, Thomson Reuters, S&P Market Intelligence, specialised alternatives and hedge fund publications.
In our placement activity, we utilise external buy-side and sell-side advisers to enhance our access to new markets. Then we engage advisers internally to help set up a new and regulated entity.
For our new in-house European Direct Lending fund, we have chosen to focus on asset management and outsourced all other services based on criteria such as the provider’s ability to fulfil our structural, regulatory, administration, legal, tax and audit requirements, and consideration of provider brand and value added.