The Sterling Group Rockets to $3.5B for Industrials-Focused Fund
The Sterling Group, an industrials-focused middle market private equity firm, has closed Sterling Group Partners VI, LP at its oversubscribed hard cap of $3.5 billion, soaring past its target of $2.75 billion with most of its capital coming from returning LPs.
The Houston-based firm’s previous fund closed in June 2020 with $2 billion of limited partner commitments, and previously closed its fourth fund in 2015 at $1.25 billion.
The fund will primarily target corporate carve-outs and family businesses in the industrials sector with enterprise values of between $100 million and $750 million.
“The secular tailwinds underpinning today’s industrial middle market, when combined with our proven Seven Lever value creation strategy, present tremendous opportunities for Fund VI,” said Franny Jones, partner, investor relations.
Sterling has sponsored the buyout of 71 platform companies and numerous add-on acquisitions for a total transaction value of over $24 billion. The private equity and private credit firm currently has $9.4 billion of assets under management.
Evercore Private Funds Group acted as the exclusive global placement agent, and Kirkland and Ellis, LLP served as fund counsel.