Key Takeaways
- • Sterling Investment Partners, a Greenwich, Conn.-based middle market private equity firm focused on business services and distribution, has received a passive, non-voting strategic minority investment from PACT Capital Partners, a GP stakes investor.
- • The capital is earmarked for increased general partner commitments to future Sterling funds, additional equity incentives for investment professionals, and continued investment in firm resources and capabilities.
- • Sterling states there will be no change to its day-to-day management or investment process, and specific transaction terms were not disclosed.
- • Sterling is currently deploying Sterling Investment Partners Fund V and the XK Opportunities Fund, a continuation vehicle for infrastructure services provider XKIG, both raised in 2025 to their hard caps.
- • Houlihan Lokey advised Sterling financially, with Kirkland & Ellis as Sterling's counsel and Fried, Frank, Harris, Shriver & Jacobson as PACT's counsel.
Summary
Sterling Investment Partners ("Sterling"), a middle market private equity firm focused on business services and distribution, announced a strategic minority investment from PACT Capital Partners ("PACT"), an independent GP stakes firm that backs high-performing middle market alternative asset managers, according to the Business Wire release. PACT's stake is passive and non-voting, and the release states there will be no change to Sterling's day-to-day management or investment process.
The proceeds will support Sterling's long-term strategic priorities, including larger general partner commitments to its future funds, expanded equity incentives for its investment professionals, and continued investment in its resources and capabilities. Charles Santoro, Co-Founder and Managing Partner, and James Soldano and Mike Barr, Managing Partners, said in a joint statement that PACT shares their conviction that Sterling is well positioned over its 35-year history. Joe Gault, Senior Partner, said the partnership should strengthen Sterling's ability to deliver strong returns to investors.
Christian von Schimmelmann, Founder and Managing Partner of PACT, said Sterling fits the type of high-performing firm PACT seeks to partner with, and that PACT has followed Sterling's results for many years. Brian Vickery, Founder and Head of PACT's proprietary imPACT Platform, cited Sterling's track record, leadership continuity and ability to build business platforms in the middle market. Specific financial terms were not disclosed.
Sterling describes itself as having completed roughly 300 transactions representing more than $35 billion in aggregate value since inception. The firm is ranked a Top 20 global middle market private equity firm by Dow Jones-HEC Paris, according to the release. PACT is headquartered in New York and uses its imPACT platform to support partner firms with capital formation, product launches, operations and talent.
The proceeds will support Sterling's long-term strategic priorities, including larger general partner commitments to its future funds, expanded equity incentives for its investment professionals, and continued investment in its resources and capabilities. Charles Santoro, Co-Founder and Managing Partner, and James Soldano and Mike Barr, Managing Partners, said in a joint statement that PACT shares their conviction that Sterling is well positioned over its 35-year history. Joe Gault, Senior Partner, said the partnership should strengthen Sterling's ability to deliver strong returns to investors.
Christian von Schimmelmann, Founder and Managing Partner of PACT, said Sterling fits the type of high-performing firm PACT seeks to partner with, and that PACT has followed Sterling's results for many years. Brian Vickery, Founder and Head of PACT's proprietary imPACT Platform, cited Sterling's track record, leadership continuity and ability to build business platforms in the middle market. Specific financial terms were not disclosed.
Sterling describes itself as having completed roughly 300 transactions representing more than $35 billion in aggregate value since inception. The firm is ranked a Top 20 global middle market private equity firm by Dow Jones-HEC Paris, according to the release. PACT is headquartered in New York and uses its imPACT platform to support partner firms with capital formation, product launches, operations and talent.
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