Sterling Partners Forms its First Capital Pool Company

Sterling's SP Strategic Acquisition Corp. is the first Chicago-based CPC on the TSX Venture Exchange

CHICAGO, Aug. 9, 2023 /PRNewswire/ -- Sterling Partners ("Sterling"), a diversified investment management firm based in Chicago, has launched its first Capital Pool Company ("CPC"), SP Strategic Acquisition Corp. (SPSA/P:CN, "SPSA"). SPSA gives Sterling an additional path to invest as well as provide expert director-level guidance and long-term strategy to an early-stage company. SPSA is the first Chicago-based CPC on the TSX Venture Exchange ("TSXV"), Canada's leading public equities markets and one of the largest sources of liquidity and pricing for Canadian securities.

Established by the TSXV, the CPC program helps early-stage private companies complete a more flexible and controlled go-public transaction. It primarily connects Canadian and U.S. entrepreneurs looking for capital and public company management expertise to investors with deep financial market expertise.

Since its launch, nearly 3,000 CPCs have been created, 85% of which have completed qualifying transactions while raising $78 billion of equity capital. Thirty-five percent of currently listed TSX companies are former CPCs that have graduated from the TSXV. 

"Whether it's the industries we've invested in or the investment strategies we've expanded to, Sterling has always done things a little differently. But the goal has never changed – to inspire growth," said Steven Taslitz, Co-Founder and Chairman of Sterling. "We're proud to be the first Chicago-based CPC in the history of the program and are excited to find a partner to guide to its next phase of growth." 

SPSA is led by Brian Kabot of Sterling, who has over two decades of principal investing experience. Kabot previously served as the Chief Investment Officer of Stable Road Capital, an LA-based family office, and has held senior positions at various other private equity firms and hedge funds. 

Kabot and his team are actively looking to partner with an earlier-stage, high-growth business to help management execute strategies to scale the organization, increase revenues and profitability, and drive returns for investors. The CPC program requires capital and support services from experienced directors and officers, which has been a hallmark of Sterling's successful investment approach for the past 40 years. Once SPSA acquires a business, Sterling will continue to lead the combined enterprise's long-term strategy.

"What I love about Sterling's CPC is that it makes raising capital easier, and it combines the infrastructure and capabilities of a large, diversified investment management firm with the benefits of streamlined access to the public markets," said Kabot. 

"We are thrilled to welcome SPSA to our platform," said George Khalife, Vice President, Midwest U.S. at TSX. "With its four decades of active investment management, long-standing focus on growth, and intentional commitment to entrepreneurs and business founders, Sterling is exactly the type of partner we want to connect growth companies with on their path to go public." 

For more information on SPSA or to explore an opportunity, email: [email protected]. 

Cassels served as legal counsel and VII Capital as Sterling's banker. MNP also consulted on the CPC.

About Sterling Partners: Sterling Partners ("Sterling") is a diversified investment management platform founded in 1983 and based in Chicago. The firm started with four young entrepreneurs, who went on to build one of Chicago's most prominent private equity firms. Today, the firm has expanded beyond its strong private equity practice into several other investment strategies. Complementing its institutional fund practice, Sterling invests in a wide variety of companies in various stages of growth – from early-stage, high-growth businesses to mature, profitable companies – on a deal-by-deal basis. These investments cross several industries, and the firm makes control, non-control, and preferred equity investments. Sterling adds value to its portfolio companies and the founders with whom it partners with its entrepreneurial roots, deep domain expertise, focus on transformational growth, and access to world-class executive talent. For more information, please visit www.sterlingpartners.com.

Media Contact:
Taylor Trovillion, FINN Partners for Sterling Partners
[email protected] 

SOURCE Sterling Partners