BlackStar Enterprise Group, Inc. is a publicly traded specialized merchant banking firm, facilitating capital to potential revenue generating companies. BlackStar’s shares trade on the OTCQB under the symbol, BEGI.
With the demise of the OTC small cap brokerage firms, and the pressure that FINRA has brought on Broker Dealers to not offer private placements, today's entrepreneur has little choice but to either raise private-equity or crowdfund over the internet. In turn, these investment strategies limit the private investor to high-risk, non-liquid equity ownership with no diversification. Crowd funding has proven to be largely ineffective for larger capital amounts, with many traps for the entrepreneur.
BlackStar offers a new merchant banking approach for both the entrepreneur and the private investor. BlackStar is a publicly traded financier for private companies to address the financial needs of the early stage business while providing a diversified and liquid investment vehicle for the investor. BlackStar’s venue is private early stage companies throughout various industries that exhibit a potential for sustained growth. The Company is actively seeking opportunity for discussions with revenue generating enterprises for investment and financing.
Our Company, BlackStar Enterprise Group, Inc. is a micro-cap merchant banking and finance firm that serves clients in their early corporate lifecycles and which may provide funding in the form of loans, factoring, convertible debt, equity, and joint ventures. Our investment strategy focuses primarily on making secured and unsecured debt investments or joint ventures in companies that we believe are poised to grow at above-average rates relative to other sectors of the U.S. economy, which we refer to as “emerging growth companies.” We may also invest in equity or equity-related investments alongside our debt investments. BlackStar Enterprise management has over 80 years of combined securities, accounting, capital structure, investment banking, management, and private equity experience spanning many completed transactions, in the public and private sectors.
We seek debt investments in private, or public emerging commercial-stage businesses with perceived strong growth prospects within certain industry sectors. We will not fund a company unless our parent, International Hedge Group, Inc., has a consulting engagement so that our client companies can be monitored as to their financial situations. We may, under our loan documents, convert our debt to equity and we may receive warrants in the portfolio companies, for loans factoring or joint ventures. Given our early-stage focus, our portfolio companies will typically have an estimated path to liquidity in a three-year +/- timeframe. We seek to invest up to $10 million per company in senior debt and equity linked securities. We may provide off-balance sheet financing to client companies. Our success will be dependent upon are our abilities to analyze and manage the opportunities presented to us. Our management may earn shares of our Company under our Stock Option and Award Plan as incentives on the basis of achievement, and all are accountable to each other, as well as the shareholders, and bonus awards are intended based upon individual performance, as well as team cooperation, and enterprise building. We intend to focus on making secured and unsecured debt investments in emerging growth companies. We intend to primarily make debt investments in companies across various stages of development, including early and growth stage companies, more established companies and lower middle market companies. We may also invest in equity and equity-related securities, and joint ventures.