December 06, 2010
March 16, 2010
The Sterling Group, L.P. a Houston based middle-market private equity firm focused on operational value creation, today announced the final closing of Sterling Group Partners III, L.P. (Fund III) at $820 million. Fund III, raised in 10 months and oversubscribed, closed significantly above its $600 million target. It is the successor to Sterling Group Partners II, L.P. (Fund II), a $470 million private equity fund organized in 2005. With the close of Fund III, Sterling has approximately $1.3 billion in committed capital under management.
As with previous funds, the objective of Fund III is to create superior returns by acquiring companies with significant opportunities to drive strategic and operational improvements in partnership with management. Fund III will focus on middle-market businesses in manufacturing, industrial service and distribution, typically with $100 million to $500 million in total enterprise value. The Fund will focus primarily on corporate carve outs, buy and builds, family-owned businesses and other complicated sale processes.
Lazard Freres acted as Sterling’s exclusive global placement agent for Fund III. Paul, Weiss, Rifkind, Wharton and Garrison LLP acted as legal counsel.
About The Sterling Group, L.P.
Founded in 1982, The Sterling Group is a Houston based private equity firm targeting controlling interests in basic manufacturing, industrial services, and distribution companies. Sterling emphasizes strategic and operational value creation in partnership with management. Typical enterprise values range from $100 to $500 million. Over its nearly 30 year history, Sterling has acquired 36 platform companies and numerous add-on acquisitions aggregating approximately $8.6 billion in transaction value. Currently, Sterling has $1.3 billion of committed capital under management.
May 25, 2005
The Sterling Group, L.P., a Houston-based private equity firm focused on acquiring North American middle-market manufacturing, industrial service and distribution companies, today announced the final close of Sterling Group Partners II, L.P. (“Fund II”), with aggregate capital commitments of $470 million, including $20 million from the Principals of Sterling. Additionally, The Sterling Group announced the addition of two new members to the Sterling team. Gary Rosenthal, a former Principal with Sterling from 1989 to 1990, has rejoined as a Principal, and Kelly Boots has been named Chief Financial Officer.
The Sterling Group founded more than 23 years ago, is one of the oldest private equity firms in the United States. Sterling’s six Partners – Chairman Frank Hevrdejs, Billy Oehmig, Hunter Nelson, John Hawkins, Kevin Garland and Gary Rosenthal – have over a combined 80 years of experience with The Sterling Group.
The firm will use Fund II to continue to execute its strategy of partnering with management teams to drive strategic, operational and financial improvements in its portfolio companies. Historically, this has often occurred in acquisitions of spin-outs of non-core divisions of large corporations and family-owned businesses as well as buy-and-build strategies in fragmented industries.
Limited partners in Fund II include a diverse group of pension plans, fund-of-funds, university endowments, financial institutions, foundations and individuals. Lazard Freres acted as Sterling’s exclusive global placement agent for Fund II, and Paul, Weiss, Rifkind, Wharton and Garrison LLP acted as legal counsel.
About The Sterling Group, L.P.
The Sterling Group, founded in 1982 by the late Gordon Cain and Frank Hevrdejs, is a Houston-based private equity firm focused on acquiring middle-market manufacturing, industrial services and distribution companies between $100 million and $500 million in enterprise value. In total, the firm has made 29 platform and numerous add-on acquisitions totaling over $7 billion in transaction value. For more information, visit www.sterling-group.com.