What The Sterling Group does

The Sterling Group, L.P. is a privately held, operationally focused middle market private equity and private credit firm headquartered in Houston, Texas, with an additional office in Dallas. Founded in 1982 by Gordon Cain and Frank Hevrdejs, Sterling has sponsored 78 platform company buyouts and numerous add-on acquisitions totaling over $27 billion in transaction value, and currently manages approximately $9 billion in assets under management across three complementary strategies: a Middle Market Private Equity fund (enterprise values $100M–$1B, equity checks $50M–$350M); the Lower Middle Market Foundation Fund; and the Sterling Credit Fund, which has underwritten nearly $13 billion of leveraged credit and equity co-investments over 19+ years. The firm applies a proprietary operational improvement framework called the Seven Levers℠ methodology, supported by a centralized Portfolio Resource Group covering Human Capital, Operations, Commercial, Strategy, Technology, and M&A capabilities, and widely shares equity and options with portfolio company employees as a partnership alignment mechanism.

Sterling's investment focus is squarely on basic manufacturing, distribution, industrial services, and business services, with over 75% of past partnerships involving family-owned businesses or corporate carve-outs. The firm earns revenue through management fees on committed/invested capital, carried interest on realizations, and interest income and fees from the Credit Fund's junior debt and equity co-investments. Recent platform investments span healthcare linen (HLSG), specialty rigid packaging (PCI), municipal water infrastructure (Scruggs), aviation services (PrimeFlight), pavement preservation (PPG), and overhead door services (OGD), with exits in 2024–2026 to strategic buyers (Lowe's, Quanta Services, Apollo, Bain Capital, Greenbriar Equity) and others. Sterling was ranked #13 of 695 global middle market private equity firms (top 2%) in the 2025 HEC-DowJones Middle Market Buyout Performance ranking.

Name

The Sterling Group

Legal name

The Sterling Group, L.P.

Website

https://sterling-group.com

Company type

Private

Founded year

1982

Operating status

Operating

Headcount range

11–50 employees

Short description

The Sterling Group is a privately held, operationally focused middle market private equity and private credit firm managing approximately $9 billion across Middle Market, Lower Middle Market, and Credit strategies, investing in industrial sector family businesses and corporate carve-outs since 1982.

Ownership category

akta.pro rank

Product category

Private Equity Investment Management

NAICS

Portfolio Management and Investment Advice (523940)

SIC

Security Brokers, Dealers & Flotation Companies (6211)

akta.pro primary industry

Large-Cap / Mega-Fund Buyout (FSANABAA)

Keywords

• Middle market private equity
• Industrial sector investing
• Private credit fund
• Lower middle market buyouts
• Operational improvement investing

Headquarters

HQ city

Houston

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales

Revenue model

1. Private Equity Fund Management (Middle Market): Sterling manages Middle Market private equity funds that invest in industrial companies with typical enterprise values of $100M to $1B and equity investments of $50M to $350M. AUM of approximately $9 billion across strategies; six middle market funds closed over time. Revenue is generated through management fees and carried interest.
2. Foundation Fund (Lower Middle Market): Sterling's Lower Middle Market / Foundation Fund invests in smaller industrial companies with $50M to $350M equity investments, forming new platforms (e.g., OGD Overhead Garage Door, Compost360, Premier Tire & Service, AGS American Glass Services, Russell Landscape Group, Scruggs). Sterling closed its sixth fund with $3.5 billion in commitments (referenced in OGD coverage).
3. Sterling Credit Fund (Private Credit): The Sterling Group Credit Fund invests primarily in junior debt (mezzanine, 2nd lien, unitranche) and equity co-investments in middle market businesses, partnered with private equity sponsors. The team has underwritten nearly $13 billion of leveraged credit and equity over 19+ years. Revenue is generated from interest income, fees, and equity co-investment returns.

Go-to-market motion3 records

Distribution channels4 records

Marketing channels6 records

Core offering

The Sterling Group is an operationally focused middle market private equity and private credit firm that invests in industrial-sector businesses through three strategies: a Middle Market fund (equity investments of $50M-$350M in companies with $100M-$1B enterprise value), a Lower Middle Market Foundation Fund targeting smaller industrial platforms, and the Sterling Credit Fund providing junior debt and equity co-investments to PE-sponsored middle market companies. Sterling applies its proprietary Seven Levers℠ operational improvement methodology across all portfolio companies to drive value creation.

Product overview

The Sterling Group is an operationally focused middle market private equity and private credit investment firm (not a unified software product), offering a platform of three complementary investment strategies that work together under a single firm: (1) the Middle Market Private Equity strategy, the flagship fund targeting basic manufacturing, distribution, and industrial services companies with enterprise values of $100 million to $1 billion; (2) the Foundation Fund (Lower Middle Market Private Equity), a parallel strategy targeting smaller industrial companies; and (3) the Sterling Group Credit Fund (Private Credit), which provides junior debt and equity co-investments alongside private equity sponsors. Across all three strategies Sterling applies its proprietary Seven Levers℠ operational improvement methodology, the differentiated capability that supports portfolio company management teams in driving continuous improvement and value creation.

Differentiator

Problem solved

Functional benefit

Brands

• Sterling Group Private Equity: Middle market and lower middle market private equity investment strategies targeting manufacturing, distribution, and industrial services companies.
• Sterling Group Private Credit
• The Sterling Group Foundation Fund
• Seven Levers

Products and services

• The Sterling Group Middle Market Private Equity Flagship middle market private equity strategy that makes majority control investments in basic manufacturing, distribution, and industrial services companies with typical enterprise values of $100M to $1B and equity investments of $50M to $350M. Targets family businesses, corporate carve-outs, and sponsor-owned businesses.
• The Sterling Group Foundation Fund (Lower Middle Market Private Equity) Lower middle market private equity strategy launched in 2021 that partners with industrial sector companies below the typical Middle Market fund size, leveraging Sterling's operational capabilities to set the foundation for growth at smaller companies. Active platforms include Premier Tire & Service, Compost360, Russell Landscape Group, OGD Overhead Garage Door, AGS American Glass Services, and Scruggs.
• The Sterling Group Credit Fund (Private Credit) Private credit strategy that invests primarily in junior debt (mezzanine, 2nd lien, or unitranche) and equity co-investments to finance middle market companies, partnering with private equity sponsors and management teams. The team has underwritten nearly $13 billion of leveraged credit and equity over 19+ years.
• Seven Levers℠ Methodology Proprietary operational improvement framework built on continuous improvement principles representing the areas in which Sterling consistently and materially impacts portfolio businesses. The Seven Levers℠ draw on nearly four decades of collective operations experience and are offered as resources to portfolio management teams.

Quantifiable outcome

• Ranked #13 of 695 global PE firms (top 2%) in 2025 HEC-DowJones Middle Market Buyout Performance ranking
• +9 more outcomes

Named customers24 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

23 partnerships are on record, tiered independent board director appointment, add-on to ppg platform, add-on to hlsg platform, flagship foundation fund platform, senior leadership hire, senior business development hire, flagship fund vi platform, internal promotions, add-on to primeflight platform, add-on to pci platform, buyer of sterling exit (adg), foundation fund leadership hire, buyer of sterling exit (evergreen), foundation fund platform (organic formation), flagship fund v platform and major platform (acquired and exited).

• Greg Rogowski (Scruggs Board of Directors)independent board director appointmentOthers · 21 May 2026The Scruggs Companies (Sterling Foundation Fund portfolio company) appointed Greg Rogowski to its Board of Directors. Rogowski brings 30+ years of executive leadership experience across water infrastructure, industrial, and engineered materials. Formerly EVP of Mueller Water Products (2018-2020) and President of Mueller Co. (2009-2017).
• Asphalt Paving Systems (APS)add-on to ppg platformStrategic or Co-development Partner · 19 May 2026Pavement Preservation Group, a Sterling Fund V portfolio company, acquired Asphalt Paving Systems, a vertically integrated pavement preservation contractor and manufacturer of asphalt and emulsion products founded in 1985 and headquartered in Hammonton, New Jersey. Marked PPG's fifth acquisition since platform formation in 2024.
• Texas Textile Servicesadd-on to hlsg platformStrategic or Co-development Partner · 5 May 2026Healthcare Linen Services Group (HLSG), Sterling Fund VI portfolio company, acquired Texas Textile Services, a regional healthcare linen and laundry services provider headquartered in Houston. Acquisition expands HLSG's presence in the Texas healthcare market.
• The Scruggs Companiesflagship foundation fund platformStrategic or Co-development Partner · 27 April 2026Sterling Group Foundation Fund acquired The Scruggs Companies, a Houston-based provider of flow control products (valves, actuators, automation components) and repair/maintenance services for municipal water and wastewater infrastructure across Texas, Oklahoma, Kansas, Missouri, and Arkansas. Held in Foundation Fund.
• Robert Gray (Managing Director, General Counsel & Chief Compliance Officer)senior leadership hireOthers · 23 April 2026Sterling added Robert Gray as Managing Director, General Counsel & Chief Compliance Officer in February 2026. Gray joins from Riverstone Holdings LLC where he spent more than 15 years, most recently as Managing Director and General Counsel. Brings over 25 years of legal experience. B.A. from Georgetown; J.D. from Duke University School of Law.
• Pierce Edwards (Managing Director, Business Development)senior business development hireOthers · 23 April 2026Sterling added Pierce Edwards as Managing Director, Business Development in 2026, based in the Dallas office. Edwards previously spent nearly 9 years at Valesco Industries as Managing Director & Head of Business Development. B.A. from Amherst College; M.B.A. from SMU. Works closely with the Foundation Fund team to source new platform investments.
• Precision Concepts International (PCI)flagship fund vi platformStrategic or Co-development Partner · 20 April 2026Sterling agreed to acquire a majority ownership stake in PCI, a leading provider of specialty rigid packaging solutions based in Huntersville, North Carolina, from ONCAP in July 2025. ~1,200 employees; 9 manufacturing facilities in Canada, the U.S., and Costa Rica. PCI subsequently acquired Comar in November 2025.
• Healthcare Linen Services Group (HLSG)flagship fund vi platformStrategic or Co-development Partner · 10 April 2026Sterling completed the acquisition of HLSG from York Capital Management's private equity group on April 10, 2026. HLSG is a regional provider of outsourced linen laundry services to healthcare institutions across 13 states; operates 23 plants. Stephens, Inc. acted as financial advisor; Latham & Watkins as legal advisor; Weil, Gotshal & Manges as financing counsel.
• Jared Bell / Greg Caraway / Mike Galanis / Bryan Tisdale (Principals)internal promotionsOthers · 5 March 2026Sterling announced four internal promotions on March 5, 2026: Jared Bell to Principal (Foundation Fund); Greg Caraway to Principal; Mike Galanis to Principal (Commercial Excellence); Bryan Tisdale to Principal (Foundation Fund). Recognized for leadership, initiative, and commitment to the firm and portfolio companies.
• GAT Airline Ground Supportadd-on to primeflight platformStrategic or Co-development Partner · 5 February 2026PrimeFlight Aviation Services, a Sterling Fund V portfolio company, acquired GAT Airline Ground Support (headquartered in Peachtree City, Georgia) in February 2026. GAT provides mission-critical ground handling, cargo handling, and Sky Café catering services to airline customers across the U.S. and Canada. Approximately 6,000 employees; operates at nearly 70 airports. DLA Piper served as legal counsel.
• Holbrook Asphalt / Integrated Pavement Solutions (IPS)add-on to ppg platformStrategic or Co-development Partner · 28 January 2026Pavement Preservation Group (Sterling Fund V portfolio) acquired Holbrook Asphalt (St. George, Utah; founded 1999) and Integrated Pavement Solutions (IPS), including the HA5™ high-density mineral bond product, in January 2026. Marked PPG's third acquisition since formation.
• Immaculate Flightadd-on to primeflight platformStrategic or Co-development Partner · 25 November 2025The Prime Appearance division of PrimeFlight Aviation Services acquired Immaculate Flight in November 2025. Immaculate Flight provides aircraft detailing services at more than 200 airports nationwide. Operations to be integrated and rebranded under the Prime Appearance brand.
• Russell Landscape Groupflagship foundation fund platformStrategic or Co-development Partner · 10 November 2025Russell Landscape Group, a Sterling Foundation Fund portfolio company, completed its fifth acquisition since 2024 by acquiring Utz Environmental Services in Austin, Texas, expanding into Texas. Now operates 16 regional operations across 6 states (Texas, Florida, Georgia, South Carolina, Tennessee, North Carolina). Teddy Russell (CEO and second-generation founder) leads the business.
• Comaradd-on to pci platformStrategic or Co-development Partner · 4 November 2025Precision Concepts International (PCI), a Sterling Fund VI portfolio company, acquired Comar in November 2025. Comar (founded 1949) is a producer of consumer and healthcare rigid packaging products and plastic medical products; operates 9 manufacturing facilities in the U.S., 2 in Puerto Rico and Ireland. Evercore and Latham & Watkins advised PCI; Guggenheim Securities and Jones Day advised Comar.
• Circle C Paving and Constructionadd-on to ppg platformStrategic or Co-development Partner · 6 October 2025Vance Brothers, a division of Pavement Preservation Group, acquired Circle C Paving and Construction and Circle C Transport (collectively 'Circle C') in October 2025. Circle C is a leading regional pavement preservation provider (chip and scrub sealing) based in Goddard, Kansas, serving Kansas and northern Oklahoma.
• Lowe's Companies, Inc.buyer of sterling exit (adg)Strategic or Co-development Partner · 2 June 2025Sterling completed the sale of Artisan Design Group (ADG), a leading design, distribution, and installation services provider for interior surface finishes with 132 facilities in 18 states, to Lowe's for $1.3 billion in June 2025. RBC Capital Markets was lead financial advisor; Goldman Sachs and Robert W. Baird were also financial advisors; Latham & Watkins was legal advisor.
• OGD Overhead Garage Doorflagship foundation fund platformStrategic or Co-development Partner · 8 July 2024The Sterling Group Foundation Fund acquired OGD Overhead Garage Door on July 8, 2024 with senior debt financing from Adams Street Partners' Private Credit strategy. BlackArch Partners advised on the sale. OGD was founded in 2011 and is headquartered in Fort Worth, TX. The company operates 45 metropolitan service areas in the Southeast, Midwest, Mid-Atlantic, and Mountain West regions.
• Jonathan Jackson (Managing Director)foundation fund leadership hireOthers · 8 July 2024Sterling hired Jonathan Jackson as Managing Director of the Foundation Fund on July 8, 2024. Jackson brings 15+ years of middle market private equity experience, most recently as a Managing Director at Sun Capital Partners, focused on services, industrial, and food sectors. B.A. in Economics from the University of California at Berkeley. Leads portfolio coverage of OGD Overhead Garage Door and Compost360.
• Quanta Servicesbuyer of sterling exit (evergreen)Strategic or Co-development Partner · 23 February 2024Sterling completed the sale of Evergreen North America Industrial Services to Quanta Services in February 2024. Latham & Watkins served as legal counsel; BlackArch Partners served as financial advisor to Sterling.
• Compost360 / Nature's Choicefoundation fund platform (organic formation)Strategic or Co-development Partner · 9 August 2023Sterling Group Foundation Fund formed Compost360, a new platform focused on processing organic waste and producing landscaping products. Stellus Capital Management provided unitranche senior debt financing and equity co-investment. First acquisition: Nature's Choice, a recycling company producing compost and soils based in New Jersey.
• Gulf Winds Internationalflagship fund v platformStrategic or Co-development Partner · 19 December 2022Sterling completed the acquisition of Gulf Winds International, a Houston-based second-generation family-owned provider of intermodal transportation solutions (container drayage, transloading, container storage), on December 19, 2022. Held in Fund V. Gulf Winds serves several U.S. ports.
• Ergotron, Inc.flagship fund v platformStrategic or Co-development Partner · 15 June 2022Sterling acquired Ergotron, a designer and distributor of ergonomic products for healthcare, workspace, industrial, and education settings, from Melrose Industries Plc for US$650 million in 2022. Latham & Watkins advised Sterling on the transaction. Held in Fund V. Headquartered in St. Paul, Minnesota.
• West Star Aviationmajor platform (acquired and exited)Strategic or Co-development Partner · 2 March 2022Sterling acquired West Star Aviation, a business aviation MRO provider founded in 1947, from Norwest Equity Partners in March 2022. Sterling subsequently sold West Star to Greenbriar Equity Group in May 2025; 3,000+ professionals across multiple U.S. facilities.

Scale indicators8 records

Recent moves15 records

Expansion highlights6 records

Direct peers

• Audax Group: Audax is a middle market private equity firm focused on industrial, healthcare, and business services buyouts with similar enterprise value ranges ($50M–$500M) and a long history of programmatic add-on acquisitions, making it Sterling's closest direct competitor in the U.S. middle market industrials space.
• Wynnchurch Capital: Wynnchurch is an operationally focused middle market PE firm investing in lower middle market industrial and business services companies, closely comparable to Sterling's Foundation Fund strategy with similar $50M–$350M equity check sizes.
• CenterOak Partners: CenterOak is a Dallas-based middle market PE firm focused on industrial and consumer businesses, and Lucas Cutler (now Sterling's Foundation Fund lead) was previously Managing Partner at CenterOak, making it a near-direct comparable for Sterling's lower middle market industrial strategy.
• Sun Capital Partners: Sun Capital is a middle market PE firm investing in operationally intensive industrial, consumer, and services businesses, and Jonathan Jackson (Sterling's Foundation Fund MD) was previously a Managing Director at Sun Capital — a direct comparable for Sterling's industrial services focus.
• Insight Equity: Insight Equity is a middle market PE firm focused on operationally intensive industrial and distribution businesses, and several Sterling team members (Luke Bateman, Kelli Pedersen) previously worked at Insight Equity — making it a strong functional peer in industrial-focused middle market PE.
• Brazos Partners: Brazos Partners is a middle market PE firm focused on industrial and consumer businesses with similar equity check sizes, and Lucas Cutler (now Sterling's Foundation Fund lead) was previously a Managing Director at Brazos — closely mirroring Sterling's lower middle market industrial thesis.
• Pritzker Private Capital: PPC is a Chicago-based middle market PE firm focused on industrial and family-owned businesses, and notably acquired Highline Aftermarket from Sterling in 2020 — a strong direct peer with overlapping investment criteria in family/industrial businesses.
• H.I.G. Capital: H.I.G. Capital is a large global middle market PE firm with a Lower Middle Market and Private Credit strategy directly comparable to Sterling's three-strategy platform; H.I.G. acquired Time Manufacturing from Sterling in 2021, evidencing the deal overlap.

Broad incumbents

• Bain Capital: Bain Capital is a global PE/credit giant with significant middle market industrial activity; it acquired Frontline Road Safety from Sterling in 2025, evidencing direct overlap on U.S. industrial services deals despite Bain's much broader and larger scale.
• Platinum Equity: Platinum Equity is a global M&A and PE firm focused on operationally intensive industrial carve-outs and divestitures, and recently agreed to acquire Tangent Technologies from Sterling in 2026 — a direct overlap on corporate carve-outs and industrial complex situations.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks5 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/the-sterling-group_4

Revenue estimate

Valuation estimate

Number of profiles

Profiles16 records

Subsidiaries2 records

Funding overview

Funding rounds4 records

Investors2 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A23 records

Investments2 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about The Sterling Group