The Sterling Group Hits $1.25 Billion Hard Cap For Its Fourth Private Equity Fund

Jul 27, 2015, 13:38 ET from The Sterling Group

HOUSTON, July 27, 2015 /PRNewswire/ -- The Sterling Group, a middle market private equity firm based in Houston, Texas, announced it has closed on $1.25 billion in investor commitments for its most recent fund, Sterling Group Partners IV ("Fund IV").   Fund IV was oversubscribed and reached its hard cap in three months.  Consistent with Sterling's successful 33-year history, Fund IV primarily will target corporate carve-outs and family businesses in the industrial sector of the middle market.

The substantial majority of Fund IV's capital was committed by returning investors. Sterling welcomes a select number of new investors.  "The Sterling team is pleased by the significant demand for Fund IV and the strength of our partnership with our investors," said Kevin Garland, a Partner with The Sterling Group, "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."

Sterling targets manufacturing, distribution and industrial service businesses generally with $100 million to $500 million in total enterprise value.  The firm emphasizes its strong operational approach in partnership with management teams to grow and improve industrial businesses. Sterling's partner group of Gary Rosenthal, John Hawkins, Kevin Garland, Greg Elliott, Kent Wallace and Brian Henry collectively has 90 years working at Sterling.

Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel.  Sterling did not utilize a placement agent.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 46 platform companies and numerous add-on acquisitions for a total transaction value in excess of $10.0 billion. Currently, Sterling has over $2.4 billion of assets under management.  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.

 

SOURCE The Sterling Group