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.