Insight

Sterling Group racks up $3.5bn for sixth fund

Sterling's previous fund closed at $2 billion in June 2020.

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  • Fund VI will primarily target corporate carve-outs and family businesses in the industrial sector
  • The majority of fund’s limited partners include returning investors in the U.S., Europe, the Middle East and Asia
  • Evercore Private Funds Group acted as placement agent

The Sterling Group has closed its sixth fund at a hard cap of $3.5 billion, beating its $2.75 billion target.

Sterling’s previous fund closed at $2 billion in June 2020.

Fund VI will primarily target corporate carve-outs and family businesses in the industrial sector.

The majority of fund’s limited partners include returning investors in the U.S., Europe, the Middle East and Asia.

“Sterling has a four-decade track record of value creation across the economic cycle,” said Franny Jones, a partner of investor relations in a statement. “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.”

Evercore Private Funds Group acted as placement agent, and Kirkland and Ellis, LLP served as fund counsel.

Based in Texas, The Sterling Group invests in basic manufacturing, distribution, and industrial services companies. The firm was founded in 1982.