Investment Approach | Investment Strategy

Our investment strategy has been consistent since our firm's beginning. Management support, operational focus and discipline are at the heart of our business.

Full support of management. We believe that the most successful performance is achieved through supporting top quality management. This is provided through alignment of interests and strategic support of internal growth, acquisitions and other operating initiatives. In all Sterling transactions, we provide direct ownership of equity, aggressive stock option plans and a bonus system constructed to match compensation with achievement of financial and operational goals.

Fundamental value creation, not financial engineering. We believe that management and employees in each of our portfolio companies should focus on executing a clearly defined, agreed-upon business strategy. After closing an acquisition, Sterling supports management in the development of such a strategy. Both prior to and during ownership, Sterling and management together identify opportunities to drive internal expansion, pursue strategic acquisitions, and improve operational efficiencies. These opportunities are developed into a set of initiatives supported by research, action items, timelines, and incentives.

The rewards of discipline. At Sterling, we maintain a commitment to focus on our areas of understanding and expertise. Relying on our 125 years of collective business experience, and working closely with consultants and advisors, Sterling's principals analyze a company's management team, operating history, and industry prospects. We also routinely consult with other members of our firm's unmatched network of contacts - the result of over 20 years of relationship building. This depth of collective experience, plus a patient approach to investing, allows Sterling to close complicated transactions where others might lose patience.