Working Arrangements

Whom We Serve: In Financial Advisory Services, the firm specializes on closing transactions or restructurings for mid market companies across all industry sectors.  In Investment Management Services, the Principals of Lodestar originally managed exclusively for their own accounts using an investment discipline that has produced strong results since 1997.  The firm likes the freedom from distraction to pursue investments without dedicating much energy to fund raising or investor communications.  Lodestar focuses on what it does best: find the most attractive investment opportunities.  Thus, the firm serves a select few institutions and high net worth individuals who allow discretion to manage their accounts in the same way the firm manages its own capital, and who do not require significant handholding.  Lodestar expects to keep clients for multiple decades, and therefore limits the client base to a small group of institutional investors and colleagues whose investment philosophy or objectives aligns with firm’s.

How We Work: Our efforts are concentrated on working with superior management teams or individuals and finding excellent opportunities to maximize returns. In Financial Advisory Services, we only pursue friendly deals where value can be created for all parties.  In Investment Management Services, we apply the same investment screening, valuation, and trading discipline used to manage our own assets.  Client assets are traded alongside firm assets in managed separate accounts, with all accounts being allocated pro rata portions of trades based on capital balances.  Client accounts are given the same treatment as firm accounts.  All client information, including identity and financial affairs, is kept confidential.  We expect our clients to keep Financial Advisory relationships and investment positions on their behalf confidential as well.

Arrangements for Service: These are simple.  We aspire to achieve long-term relationships, but we seek no permanent arrangements.  Continuity of service depends on client satisfaction and development of mutual confidence.  For Financial Advisory Services, we charge a small or no retainer, depending on the nature of the advice sought.  We charge a deal fee, contingent on deal success, as a percentage of assets advised.  For Investment Management Services, we require a minimum investment level commensurate with serving a few, select clients who are committed for the long term.  We charge a market-based management and incentive fee.  We only accept clients who view these terms as favorable and with whom we have the elements of a mutually beneficial relationship.