Sterling Investment Partners has closed its fifth institutional private equity fund, Sterling Investment Partners V, L.P., at its hard cap of $1.6 billion, in addition to a substantial general partner commitment from Sterling employees. The fund exceeded its $1.25 billion target and was fully committed within just a few months of launch. 

Fund V continues Sterling’s long-standing strategy of control-oriented investments in middle-market companies operating in business services and distribution, the firm’s core sectors. Sterling targets businesses generating $50 million to $500 million in revenue and $15 million to $50 million in EBITDA, typically pursuing enterprise values in the $150 million to $500 million range. 

The firm has already deployed capital from Fund V into its first platform investment, XKIG, a former portfolio company previously held through an earlier Sterling fund. The investment was made alongside a significantly oversubscribed continuation vehicle, which recently closed and reflects continued conviction in the company’s long-term potential. 

“We feel our firm has never been better positioned,” said Co-Founder and Managing Partner Charles Santoro, Managing Partner James Soldano, and Managing Partner Mike Barr in a joint statement. “We are humbled by the support of our investors and are enthusiastic about the opportunities for Fund V, which has already completed its first platform investment.” 

Eaton Partners, a Stifel Company, served as lead placement agent, with Piper Sandler & Co. advising on the raise. Kirkland & Ellis LLP served as legal counsel to Sterling.