Houlihan Lokey Advises Sterling Investment Partners on a Strategic Minority GP Stake Investment From PACT Capital Partners

Houlihan Lokey is pleased to announce that Sterling Investment Partners (Sterling) has closed on a Strategic Minority GP stake Investment from PACT.

Houlihan Lokey’s GP Advisory team served as sole financial advisor to Sterling. Over the past 19 months, the GP Advisory team has served as our clients’ sole advisor on nine GP Stake transactions and one GP control M&A transaction.

Sterling 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.

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.

PACT 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. 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.

Houlihan Lokey served as the sole sellside financial advisor to Sterling.

This transaction represents an additional successful engagement for Houlihan Lokey’s market-leading GP Advisory platform, having served as its clients’ sole advisor across 10 transactions since 2025.

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