San Francisco-based private equity firm True Wind Capital has completed the sale of its investment in Sterling Brokers, a prominent Canadian benefits brokerage and third-party administrator, to Palo Alto-based private investment firm HGGC. The financial terms of the private transaction were not disclosed.

Sterling Brokers, founded in 2014 and headquartered in Toronto, Ontario, offers a comprehensive suite of group benefits solutions to Canadian and multinational corporations. The company utilizes a proprietary technology platform that integrates with HRIS and payroll systems, streamlining the connection between employers and insurance carriers. This model combines high-touch client service with tech-enabled benefits administration, simplifying plan management and enhancing access to insurance products from major Canadian carriers.

True Wind Capital initially invested in Sterling in 2022, which marked the benefits firm’s first institutional capital raise. Over the past three years, this partnership supported Sterling’s growth in the Canadian market.

Andrew Blanchard, Chief Executive Officer of Sterling, expressed appreciation for the collaboration, stating, “We thank True Wind Capital for their partnership over the past three years.” Thomas McArdle, President of Sterling, added, “We look forward to the company’s next chapter and the opportunity to continue to grow with our incredible existing clients while looking to add new clients that are looking for a distinctive benefits offering.”

Tom Hegge, Managing Director at True Wind Capital, highlighted Sterling’s distinct advantages. “Sterling’s world class team, industry-leading technology, and commitment to unparalleled customer service truly differentiate the company in a highly fragmented market,” Hegge commented. “We look forward to watching the company grow as they continue to increase their presence across Canada.”

BMO Capital Markets served as financial advisor for Sterling, with Mintz providing legal counsel for the transaction.