…investing in companies with capital raised from friends and family. With early success, the founders of the firm started raising institutional funds in 2000. Sterling’s institutional fund practice focused primarily on control investments in founder-run, middle market companies in the healthcare services, education, and business services sectors. Sterling continues to manage a portfolio of companies across its funds, leveraging the firm’s deep domain expertise, focus on transformational growth, entrepreneurial roots, and access to world-class human capital to add value.
In 2015, Sterling partnered with Strada Education Network to establish the Sterling Partners Education Opportunity Fund (“EOF”). With a separate investment team and shared operations, EOF represented an expansion of Sterling’s activity set into single industry investment strategies. Today, EOF has doubled its AUM, grown its team, and evolved into Avathon Capital.
In 2017, Sterling formed Sterling Partners Quantitative Investments (“SPQI”) with established veterans in a variety of liquid market investment strategies.
In 2018, Sterling developed ’87, an incubator and early stage investment arm of the firm. ’87 looks for ideas and companies that depend on a deep and direct relationship with their customer. The ’87 team focuses heavily on branding and content development and leverages Sterling’s robust and sophisticated financial and operational infrastructure.
For new buyout activities outside of Avathon and ’87, Sterling invests internal and third-party capital on a deal-by-deal basis across a variety of industries, growth stages, and structures. We look to invest in a wide variety of companies in various stages of growth – from early stage, high growth businesses to mature, profitable companies – across several industries. We make control, non-control, preferred equity, and debt investments with both internal and outside capital.