Sterling Investment Partners (“Sterling” or the “Firm”), a leading middle market private equity firm focused on the business services and distribution sectors, today announced a strategic minority investment from PACT Capital Partners (“PACT”), an independent GP stakes investment firm focused on investing in high-performing middle market alternative asset management firms.

PACT’s investment is a passive, non-voting minority interest in Sterling. There will be no change to the Firm’s day-to-day management or investment process. The capital will support Sterling’s long-term strategic priorities, including increased general partner commitments to the Firm’s future funds, creating additional equity incentives for the Firm’s investment professionals, and continued investment into its resources and capabilities.

“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,” said Charles Santoro, Co-Founder and Managing Partner, James Soldano and Mike Barr, Managing Partners of Sterling in a joint statement. “Importantly, PACT shares our conviction that Sterling has never been better positioned over our 35-year history and values our consistent and rigorous approach to control investments in the middle market. We very much look forward to a mutually beneficial partnership.”

Joe Gault, Senior Partner at Sterling, added, “We are confident that our partnership with PACT will help strengthen our ability to deliver strong returns for our investors and to continue achieving excellence across our platform.”

“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. As such, Sterling is exactly the type of firm with whom we like to partner. We have followed Sterling’s achievements for many years, and we are thrilled to have the opportunity to support their future success,” said Christian von Schimmelmann, Founder and Managing Partner at PACT.

Brian Vickery, Founder and Head of PACT’s proprietary imPACT Platform, added, “We have been impressed by Sterling’s long-standing track record of delivering value and performance for their investors, continuity of leadership and culture, and demonstrated ability to build leading business platforms in the middle market. We are very excited to be Sterling’s strategic partner and to support the Firm’s next chapter.”

Specific terms of the transaction were not disclosed.

Houlihan Lokey served as financial advisor and Kirkland & Ellis LLP served as legal counsel to Sterling. Fried, Frank, Harris, Shriver & Jacobson LLP served as legal counsel to PACT.

About Sterling Investment Partners

Sterling Investment Partners is a private equity firm with a track record of over 35 years building leading business platforms in the middle market with a highly experienced, cohesive team of senior investment professionals. Sterling focuses on control investments in value-added business services and distribution platforms, acquiring businesses that have strong, sustainable competitive advantages and significant opportunities for growth and value creation. The Firm is currently deploying Sterling Investment Partners Fund V as well as XK Opportunities Fund, its Continuation Fund for infrastructure services provider XKIG, with both funds raised in 2025 to their hard caps. Sterling also oversees multiple other prior funds and partnerships. Since inception, Sterling has completed approximately 300 transactions, representing more than $35 billion in aggregate value. Sterling is ranked a Top 20 performing global middle market private equity firm by Dow Jones-HEC Paris, and is recognized as a Founder Friendly Investor by Inc.com. For more information, visit www.sterlinglp.com.

About PACT Capital Partners

PACT Capital Partners is an independent investment firm focused on providing capital and strategic support to middle market alternative asset management firms. PACT seeks to partner with high-performing established and emerging private capital firms and help them to achieve their strategic objectives. Headquartered in New York, PACT utilizes its proprietary imPACT platform to assist Partner Firms in accelerating capital formation, designing and launching new products, improving operations, attracting and retaining talent, leveraging cutting-edge technology, and improving outcomes for underlying portfolio companies. To learn more, please visit https://pactcapitalpartners.com.

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