Stonecastle Asset Management, LLC

StoneCastle Asset Management provides non‑discretionary investment management to institutional clients, principally an insurance company, and tailors services and any client‑imposed investing restrictions through written investment management agreements. The firm focuses on fixed‑income investments issued by financial institutions and special purpose vehicles and does not participate in wrap fee programs.

The firm’s investment process emphasizes fundamental credit analysis and conservative credit discipline, relying on proprietary valuation models supplemented by public sources such as FDIC, OCC and SEC filings. StoneCastle implements mainly long‑term purchases and commonly invests in bank‑issued debt, hybrid securities and structured finance instruments that may be unrated or thinly traded, creating heightened liquidity and sector concentration risks.

StoneCastle reported $7.5 million of non‑discretionary assets under management and no discretionary AUM as of December 31, 2025, a structure that is uncommon for firms in this category and places greater reliance on client direction. The firm is affiliated with a FINRA‑registered broker‑dealer, StoneCastle Securities, and other StoneCastle affiliates and operates under a staffing agreement with its parent to access senior investment personnel—relationships the brochure identifies as potential sources of conflicts of interest and, in certain cases, compensation to the affiliated broker‑dealer.