The Sterling Group is a middle market private equity firm based in Houston, Texas. Founded in 1982, Sterling invests in manufacturing, distribution, and industrial service businesses with enterprise values typically between $100 and $750 million. Sterling has sponsored the buyout of over 50 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion.
Sterling’s investment strategy is predicated on acquiring good businesses that are under-managed or under-performing their potential and that have substantial opportunities for strategic and operational improvements. Through a hands-on approach, Sterling works in partnership with management teams to drive fundamental transformations of businesses and industries. We take good business and transform them into winning companies. Doing so means winning for customers, winning for employees, and winning for investors, including Sterling.
On past realized investments, Sterling has generated a return of 2.8x invested capital. Over 80% of this return was driven by organic EBITDA growth, which indicates that Sterling generates top returns for its investors by fundamentally improving the strategy and operations of its businesses. This strategy has worked throughout a variety of market cycles, and Sterling’s funds are consistently ranked in the top quartile.
Sterling currently has over $2.4 billion in assets under management and is investing out of Fund IV, a $1.25 billion fund raised in the summer of 2015. Fund IV was oversubscribed and closed in just three months. Sterling has a strong base of long term investors, comprised of some of the largest and most respected global institutional investors.