Sterling’s Fourth Fund Beats Target

Sterling’s Fourth Fund Beats Target

New $934 million fund has already invested $250 million in three platform companies

Sterling Investment Partners has held a final above-target closing of Sterling Investment Partners IV LP (SIP IV) with $934 million in capital commitments.

Westport, Connecticut-based Sterling invests in distribution and business services companies with revenues of $50 million to $500 million and EBITDA of $10 million to $50 million. Since its founding in 1991, Sterling has overseen the investment of $2.6 billion of equity across 39 platform investments and 130 add-on acquisitions.

“We appreciate the strong support of numerous existing investors and are excited to partner with a number of new investors in SIP IV,” said Charles Santoro, a managing partner and co-founder of Sterling.

Sterling has already invested $250 million in three SIP IV portfolio companies with the buys of Anser Advisory, a California-based provider of program management, advisory, and compliance services to infrastructure owners and operators including airports, schools, museums, and government facilities (March 2021); Camp Construction Services, a Texas-based provider of restoration, renovation and maintenance services to multifamily communities through an outsourced subcontractor model (November 2021); and Kendall Vegetation Services, a Georgia-based provider of utility-focused vegetation management services including tree trimming, mowing, line clearing, debris removal, and storm restoration (April 2022).

Sterling’s six partners – Michael Barr, Joseph Gault, Bill Macey, Doug Newhouse, Charles Santoro and James Soldano – are supported by nine investment professionals, including a dedicated deal origination team. Earlier this month, Sterling added Patty Xu as its new chief financial officer to oversee the financial, operational, and accounting functions of the firm, and to assist with compliance matters.

“We have continued to grow by investing in our people and adding talented professionals, and plan to continue to do so with the successful closing of SIP IV,” added Mr. Macey.

“SIP IV continues Sterling’s strategy of partnering with dynamic middle market distribution and business services companies with the objective of building industry-leading platforms,” said James Soldano, a partner at Sterling.

Eaton Partners was the placement agent for this fundraise and Simpson Thacher & Bartlett provided legal services.

© 2023 Private Equity Professional | January 24, 2023

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