Sterling Investment Partners raises $934M in funding for its Fund IV to invest in middle market companies

The global macro events and the global economic slowdown is making it increasingly harder for startups to raise funding. Founders are scrambling to get more cash than the amount VCs are willing to deploy. The problem is not just limited to just tech startups. Middle-Market companies, typically, non publicly listed companies with annual revenues above $100 million and below $3 billion, are also suffering to raise the much-needed capital amid the ongoing recession. And now for some good news.

Today, private equity firm Sterling Investment Partners (Sterling) announced today it has closed $934 million in capital commitments for its Sterling Investment Partners IV, L.P. (“SIP IV”). The fresh funding exceeded the firm’s $900 million fundraising target and includes a significant commitment from Sterling partners.

Sterling Investment Partners (Sterling) is a “go-to” middle market private equity firm in distribution and business services – concentrating on recession-resistant segments characterized by secular growth tailwinds, significant fragmentation, and recurring demand dynamics, the company states on its website.

To date, Sterling has led the investment of approximately $568 million of equity, including $250 million from SIP IV, into three SIP IV portfolio companies: Anser Advisory, Camp Facility Services, and Kendall Vegetation Services & Xylem Tree Experts.

“We appreciate the strong support of numerous existing investors and are excited to partner with a number of new investors in SIP IV,” commented Charles Santoro, Managing Partner and Co-Founder.

Since its inception over 30 years ago, Sterling has overseen the investment of over $2.6 billion of equity across 39 platform investments and 130 add-on acquisitions, and numerous greenfield expansions.

“SIP IV continues Sterling’s strategy of partnering with dynamic middle market distribution and business services companies with the objective of building industry-leading platforms,” observed James Soldano, Partner.

“We have continued to grow by investing in our people and adding talented professionals, and plan to continue to do so with the successful closing of SIP IV,” stated Bill Macey, Managing Partner and Co-Founder.

Sterling’s six partners, which include Michael Barr, Joseph Gault, and Doug Newhouse, are supported by nine investment professionals, including a dedicated deal origination team. In January 2023, Sterling added an experienced Chief Financial Officer to its team to oversee the financial, operational, and accounting functions of the firm, and to assist with compliance matters.

For more than 30 years ago, Sterling has been investing in and building middle-market companies and completed over 210 transactions, representing more than $25 billion in aggregate value. Based in Westport, Connecticut, Sterling focuses on value-added distribution and business services, acquiring businesses that the firm believes have strong, sustainable competitive advantages and significant opportunities for value creation.