Sterling Investment Partners has received a strategic minority investment from PACT Capital Partners, giving the middle-market private equity firm additional capital to support future funds, employee incentives, and investments in its platform.
PACT’s investment is structured as a passive, non-voting minority interest. Sterling’s existing leadership will continue running the firm, and the transaction will not change its day-to-day management or investment process.
Sterling plans to use the capital to increase general partner commitments to future funds, create additional equity incentives for its investment professionals, and continue investing in personnel, resources, and operating capabilities.
The Greenwich, Connecticut-based firm has more than 35 years of experience investing in middle-market businesses, with a focus on value-added business services and distribution platforms. Sterling targets control investments in companies with durable competitive positions and opportunities for operational growth.
Since inception, Sterling has completed approximately 300 transactions representing more than $35 billion in aggregate value. The firm is currently investing through Sterling Investment Partners Fund V as well as XK Opportunities Fund, a continuation vehicle for infrastructure services platform XKIG. Both vehicles were raised to their hard caps in 2025.
PACT Capital Partners focuses specifically on investing in established and emerging alternative asset managers. Beyond providing capital, PACT operates its imPACT platform to help partner firms with capital formation, new product launches, operations, technology, talent recruitment and retention, and portfolio company initiatives.
Sterling’s leadership said PACT’s focus on middle-market managers and long-term partnership approach made it a strong strategic fit as Sterling prepares for its next phase.
Houlihan Lokey served as financial advisor to Sterling, while Kirkland & Ellis provided legal counsel. Fried, Frank, Harris, Shriver & Jacobson served as legal counsel to PACT.
“We are proud to partner with PACT. PACT distinguished themselves through their differentiated approach to value creation and proven track-record of backing high-quality middle market managers.”
Charles Santoro, James Soldano And Mike Barr Of Sterling Investment Partners
“PACT seeks to partner with high-performing middle market investment firms that we believe have extraordinary investment expertise and operating capabilities to produce differentiated and consistent returns for their limited partners across cycles.”
Christian Von Schimmelmann, Founder And Managing Partner Of PACT Capital Partners
