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Adviser Profile

As of Date 03/28/2024
Adviser Type - Large advisory firm
Number of Employees 65 16.07%
of those in investment advisory functions 46 15.00%
Registration SEC, Approved, 3/30/2012
AUM* 5,931,030,810 -1.21%
of that, discretionary 5,931,030,810 -1.21%
Private Fund GAV* 5,931,030,810 -3.49%
Avg Account Size 456,233,139 -1.21%
SMA’s No
Private Funds 13
Contact Info 713 xxxxxxx
Websites

Client Types

- Pooled investment vehicles

Advisory Activities

- Portfolio management for pooled investment vehicles

Compensation Arrangments

- A percentage of assets under your management
- Performance-based fees

Recent News

Reported AUM

Discretionary
Non-discretionary
6B 5B 4B 3B 3B 2B 858M
2015 2016 2017 2018 2019 2020 2021 2022 2023

Private Funds



Employees

Private Funds Structure

Fund Type Count GAV
Fund TypePrivate Equity Fund Count13 GAV$5,931,030,810

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Brochure Summary

Overview

The Sterling Group, L.P. (together with its general partner, “Sterling Group”), a Texas limited partnership, together with any predecessors, has been in business since 1981 and is a private investment management firm that provides investment advisory services to private investment funds. The Sterling Group GP, LLC, a Delaware limited liability company, acts as the general partner of the Sterling Group. Sterling Group is not principally owned by any one individual or entity. Sterling Group’s affiliated entities serve as the general partners of Sterling Group Partners IV, L.P., Sterling Group Partners V, L.P., Sterling Group Partners VI, L.P. and Sterling Group Foundation Fund, L.P. (together with any parallel investment vehicles and alternative investment vehicles, the “Sterling Equity Funds”) and Sterling Group Credit Fund, L.P. and Sterling Group Credit Fund II, L.P. (together with any parallel investment vehicles and alternative investment vehicles, the “Credit Funds”). The Sterling Equity Funds and Credit Funds, together with any future private investment fund to which Sterling Group or its affiliates provide investment advisory services, are collectively referred to herein as the “Private Investment Funds.” The current Private Investment Funds have entered into management agreements with the following affiliated entities of Sterling Group to provide investment advisory services: Sterling Group Management IV, L.P. (“Sterling Management IV”), Sterling Group Management V, L.P. (“Sterling Management V”), Sterling Group Management VI, L.P. (“Sterling Management VI”), Sterling Group Credit Management, L.P. (“Sterling Credit”), Sterling Group Credit Management II, L.P. (“Sterling Credit II”) or Sterling Group Foundation Management, L.P. (“Sterling Foundation”). Sterling Group, Sterling Management IV, Sterling Management V, Sterling Management VI Sterling Credit, Sterling Credit II and Sterling Foundation are collectively referred to herein as “Sterling.” Sterling Management IV, Sterling Management V, Sterling Credit, Sterling Credit II, Sterling Foundation and the general partners of the Private Investment Funds do not have any employees of their own. As a result, Sterling Management IV, Sterling Management V, Sterling Credit, Sterling Credit II and Sterling Foundation have entered into sub-management agreements with Sterling Group to provide investment advisory services. Pursuant to the sub-management agreements described above, all investment advisory services are
performed by employees of Sterling Group. The Private Investment Funds are managed in accordance with their respective private equity or private credit strategies and invest through negotiated transactions in operating entities, generally referred to herein as “portfolio companies.” Sterling’s investment advisory services to the Sterling Equity Funds consist of identifying and evaluating investment opportunities, negotiating investments, managing and monitoring portfolio companies and achieving dispositions for such investments. Investments are made predominately in non-public companies, although investments in public companies are permitted. Sterling personnel generally serve on such portfolio companies’ respective boards of directors or otherwise act to influence control over management of portfolio companies. With respect to the Credit Funds, Sterling’s investment advisory services consist primarily of identifying and evaluating mezzanine and second lien loans to middle-market and lower middle-market companies as well as equity co-investments alongside its loans. The Credit Funds expect to be minority investors in such portfolio companies. Sterling formulates the investment objective for each Private Investment Fund, directs and manages the investment and reinvestment of each Private Investment Fund’s assets, and provides periodic reports to investors in each Private Investment Fund. Investment advice is provided directly to each Private Investment Fund and not individually to the limited partners of the Private Investment Fund. The terms upon which Sterling and its affiliates serve as investment manager and general partner of a Private Investment Fund are established at the time of the organization of each Private Investment Fund and are generally set forth in the governing documents of such Private Investment Fund. Sterling’s investment strategies are discussed in further detail under Item 8 - Methods of Analysis, Investment Strategies and Risk of Loss below. Investors in Private Investment Funds participate in the overall investment program for the applicable Private Investment Fund, but in certain circumstances are excused from a particular investment due to legal, regulatory or other applicable constraints pursuant to the applicable governing documents; such arrangements generally do not and will not create an adviser-client relationship between Sterling and any investor. As of December 31, 2023, Sterling managed approximately $5,931,030,810 in client assets on a discretionary basis.