BlackStar Enterprise Group, Inc. (BEGI) is a publicly traded specialized merchant banking firm that focuses on providing potential revenue-generating companies access to capital. The company mainly targets private early-stage companies that exhibit a potential for sustained growth, but it also intends to invest in more established companies and lower middle market companies.
Funding may be provided in the form of loans, factoring, convertible debt, equity and joint ventures. The company’s investment strategy primarily involves making secured and unsecured debt investments or joint ventures in companies poised to grow at above-average rates relative to other sectors. Equity or equity-related investments may also be considered alongside debt investments.
BlackStar Enterprise’s innovative approach addresses the demise of OTC small-cap brokerage firms and the pressure FINRA has brought on broker dealers to not offer private placements. In today’s market, many entrepreneurs have had little choice but to raise either private-equity or crowdfund over the internet. These investment strategies limit the private investor to high-risk, non-liquid equity ownership with no diversification.
In contrast, BlackStar’s new merchant banking approach for both the entrepreneur and the private investor addresses the financial needs of the early-stage business while providing a diversified and liquid investment vehicle for the investor. To protect shareholder value, BlackStar will not fund a company unless its parent, International Hedge Group, Inc., has a consulting engagement so that the financial situations of client companies can be monitored.
The company’s first portfolio company is MeshWorks, a software-as-a-service (“SaaS”) company that creates cloud based proprietary social communication technologies that inform, entertain, drive action, measure, and amass data across all e-mail, internet, and social media services as well as all mobile devices and print media. The company’s flagship product, MeshMail, was built to solve the need for an engagement platform that syncs with a business’s existing systems and services while providing an economical option to the overpriced and underperforming digital marketing platforms of today.
The success of BlackStar’s portfolio is largely determined by management’s ability to analyze and manage the opportunities presented to the company. Thus, BlackStar Enterprise has assembled a strong leadership team with more than a century of combined securities, accounting, capital structure, investment banking, management, and private equity experience spanning many completed transactions, in both the public and private sectors.
With an incentivized management team retaining the right kind of experience and an attractive business model for both investors and entrepreneurs, BlackStar Enterprise Group has positioned itself to unlock new opportunities for business growth.