The Sterling Group is a private investment management firm that provides investment advisory services to private investment funds. They manage these funds according to private equity or private credit strategies, investing in operating entities through negotiated transactions. Sterling identifies and evaluates investment opportunities, manages portfolio companies, and provides reports to investors in each fund. They primarily invest in non-public companies.
Fee Structure
Sterling Group manages investments for private investment funds and receives both a management fee and a performance fee. The management fees are generally payable quarterly in advance and are non-refundable. The management fee is based on a percentage of capital commitments to the fund during its investment period, and a percentage of actively invested capital after the end of its investment period. The current maximum percentage of the existing private investment funds is 2.0%. Each fund also pays the general partner a "carried interest" equal to 20% of profits on distributions derived from the disposition of investments or securities, after accounting for expenses and a preferred return to limited partners of 8% per annum.