Middle market private equity firm The Sterling Group has closed on $1.25 billion in investor commitments for its most recent fund, Sterling Group Partners IV. The new fund was oversubscribed and reached its hard cap in just three months. The majority of Fund IV’s capital was committed by returning investors and a select number of new investors.
Fund IV will continue the investment strategy of investing in industrial corporate carve-outs and family businesses. “The Sterling team is pleased by the significant demand for Fund IV and the strength of our partnership with our investors,” said Kevin Garland, Partner. “Sterling’s hands-on, operational approach to transforming industrial businesses has generated strong returns throughout a variety of market cycles. We intend to continue to execute and improve upon this strategy in Fund IV to produce top tier results for our investors.”
The Sterling Group targets controlling interests in manufacturing, industrial services and distribution companies that have enterprise values from $100 million to $500 million. The firm emphasizes an operational approach in partnership with management teams to grow and improve the companies it acquires. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, Saxco International, Liqui-Box, Dexter Axle, Safe Fleet, Specified Air Solutions, American Bath Group and ProcessBarron.
Sterling was founded in 1982 and has sponsored the buyout of 46 platform companies and numerous add-on acquisitions for a total transaction value greater than $10 billion. Currently, Sterling has over $2.4 billion of assets under management through its four funds. Sterling’s partner group of Gary Rosenthal, John Hawkins, Kevin Garland, Greg Elliott, Kent Wallace and Brian Henry have worked together a collective 90 years at Sterling. The firm is headquartered in Houston (www.sterling-group.com).
Sterling did not utilize a placement agent in the raising of Fund IV. Paul, Weiss, Rifkind, Wharton & Garrison served as legal counsel to Sterling for this fundraise.
© 2015 PEPD • Private Equity’s Leading News Magazine • 7-28-15