Sterling Partners Launches $1.2B Fund IV

Sterling Partners plans to raise $1.2 billion for its next fund, according to a form D SEC filing.

With offices in Baltimore, Miami and Northbrook, Ill., Sterling focuses on education, healthcare, technology, direct marketing, business services and specialty manufacturing & distribution. The firm typically invests from as little as $5 million to more than $150 million in equity per deal, according to the firm’s Web site.

The firm’s last fund, Sterling Capital Partners III LP, raised $1 billion in 2007. Investors included the Commonwealth of Pennsylvania State Employees’ Retirement Systems, as well as other pension funds, endowments and foundations.

The current fund, Sterling Capital Partners IV LP, will be looking to raise $200 million more than its prior fund, the May 25 filing said.

Somerset Capital acted as placement agent for Sterling’s third fund. However, it’s unclear whether the firm will return as placement agent for the fourth fund.

“The mandate is being discussed,” one person said.

In January, Sterling, along with the Canadian Pension Plan, acquired Livingston International, a provider of customs, transportation and integrated logistics services. Also that month, Sterling sold Liberty Propane to Inergy.

Officials for Sterling Capital did not return calls for comment