Sterling collects $674m for Fund III

The Connecticut-based firm is nearing its $700m hard-cap for Fund III, which will invest in mid-market companies in a variety of sectors.

Sterling Investment Partners has collected about $674 million for its Fund III, according to documents filed with the US Securities and Exchange Commission. 

Fund VIII has a $600 million target and $700 million hard-cap, according to Private Equity International’s Research and Analytics division, though the hard-cap doesn't include commitments from the general partner, according to a source familiar with the matter. 

Launched in 2012, Fund III received a $100 million commitment from the Los Angeles County Employee’s Retirement Association in May, according to documents from the pension fund.

Park Hill Group is acting as placement agent for Fund III, according to SEC documents. Sterling declined to comment. 

The firm closed its Fund II on $545 million, surpassing its $400 million target, in 2005. 

Sterling invests in mid-market companies across the business services, industrial and consumer, niche manufacturing and transportation and logistics sectors.  Its portfolio includes the largest Pizza Hut franchisee in California, Southern California Pizza Company and yard management servicer Lazer Spot, according to its website.

Sterling is led by four co-founders and managing partners including former Smith Barney Harris Upham & Company managing director William Macey and former senior vice president of Lehman Brothers' corporate finance department Douglas Newhouse. The firm's other co-founders are Charles Santoro, former vice chairman of investment banking at Paine Webber Group, and William Selden, former managing director at Shearson Lehman Brothers.

Westport, Connecticut-based Sterling was founded in 1991 and has more than $1.5 billion in equity capital under management.