Fundraising

The manager will not collect carried interest for this fund.

The firm is raising the pool at a time when interest among LPs in gaining direct exposure to companies is on the rise and the capital pool for independent sponsors is growing.

Private equity funds raised $88bn by the end of March, down 34% from a year earlier. This marked the first time that quarterly inflows have fallen below $100bn since 2020. The number of fund closings declined even more significantly.

LPs have shown interest in diversifying via industry-focused funds.

Fund II's limited partners include endowments & foundations, public and private pensions, consultants, fund of funds and family offices.

Private equity firms raised close to $177bn in January-March, with buyout funds accounting for the majority.

'We actually had our most active year of new investments in 2023,' said co-founder and managing partner Bob Morse.

Fund I beat its $50m target and received permission from LPs to go slightly over its $75m cap.

As a result of this fundraising, Strattam now has more than $1 billion assets under management.

Sterling's previous fund closed at $2 billion in June 2020.