Investment Approach | Investment Criteria

Our investment criteria have been developed and refined based upon the experience of our Principals.

Sterling invests in a limited number of companies that can achieve superior rates of return over a reasonable investment horizon. Transaction sizes generally range from $100 million to $500 million.

More than half of our portfolio companies have been acquired from Fortune 1000 corporations. Additionally, we have acquired numerous family-owned businesses, as well as a select few from other private-equity firms. We have the depth of experience to close complicated transactions in each of these areas.

Specifically, we look for manufacturing, converting, assembly, industrial services, and distribution businesses in a wide variety of industries. The company must satisfy these criteria:

• Opportunity to partner with an experienced management team that has 1) a solid understanding of its business, and 2) a track record of creating economic value
• Strong market position
• Positive cash flow history
• Growth potential through industry growth, product line expansion, or add-on acquisitions
• Potential to improve a company financially by implementing operational initiatives

Sterling prefers not to consider financial services, real estate, health care, or information technology companies.