December 2, 2010 -- Generation Partners, a $345 million private investment firm, today announced the sale of its ownership position in Sterling Infosystems, Inc. (“Sterling” or the “Company”) to Calera Capital in partnership with William Greenblatt and management.  Generation Partners provided growth capital to Sterling in 2003 and was the Company’s first institutional investor.

Headquartered in New York, Sterling is a leading provider of employment and background screening services.  William Greenblatt, Founder and Chief Executive Officer, and Richard Seldon, President, will continue to lead the Company.  Paul Walsh, a Calera operating partner, will serve as Chairman and Mark Williamson and Michael Moon of Calera Capital will join the Board.  Mark Jennings of Generation Partners will also continue to serve on Sterling’s Board.

“Sterling has been a highly successful investment for our firm,” commented Mark Jennings, Managing Partner at Generation Partners.  “During the period of our ownership, Sterling grew ten-fold and became a global leader in its industry.  The Sterling management team, led by Founder and CEO Bill Greenblatt, is truly extraordinary and has done an outstanding job building the Company.”  He added, “Sterling is a perfect example of Generation’s investment strategy; we specialize in providing growth capital to exceptional entrepreneurs, focus exclusively on high-growth service businesses and we generate our returns through core business growth, rather than through financial leverage.”

Bill Greenblatt, Founder and CEO of Sterling commented “Generation has a well deserved reputation as one of the best growth equity firms.  They are experts at professionalizing service businesses, and their capital and guidance have been absolutely invaluable to Sterling over the course of our seven-year partnership.”  He added, “I’m excited that Mark Jennings will continue to serve on our Board, and I’m thrilled to have won the confidence of Calera Capital to become our partner for the next phase of Sterling’s growth.”

About Generation Partners

Generation Partners is a private equity firm with $345 million of capital under management with offices in Greenwich, CT, San Francisco, CA, and Austin, TX.  Generation provides equity capital to growth companies and pursues both majority and minority investments.  Generation specializes in recurring revenue service businesses concentrated in three industry groups:  Business & Information Services, Healthcare Services & Software and Media & Communications.  Over the past 23 years, the firm’s principals have invested in more than 50 companies including:  Post University, Sterling Infosystems, Virtual Radiologic, Agility Recovery Solutions, MedVance Institute, Demand Media, HotJobs, thePlatform for Media, iCrossing, High End Systems, and many others.  For more information on Generation Partners, please visit www.generation.com.

About Sterling

Sterling Infosystems, Inc. (www.sterlinginfosystems.com) is a leading New York-based technology firm providing employment and student screening services, corporate due diligence and background investigation services, occupational health services, and employment related business tax consulting services in the United States and 200 countries, territories and dependencies around the world.  More than 9,000 companies trust Sterling to provide them with high quality, reliable data on which they base hiring, continued employment and admission decisions.  With offices in most major cities in the U.S., Sterling’s clients range from leading Fortune 500 firms to small and medium sized businesses.  Sterling’s industry-leading CourtDirect technology allows it to provide services faster, better and more cost effectively than other providers. For more information, please visit www.sterlinginfosystems.com.

About Calera Capital

Founded in 1991, Calera Capital, formerly known as Fremont Partners, is a private investment firm which has managed approximately $2.8 billion of capital.  With offices in San Francisco and Boston, Calera invests across a diverse range of industries including financial services, business services, food and consumer, healthcare, building products, and industrial manufacturing.  Calera Capital makes substantial equity investments in operating companies, typically with enterprise values up to $1 billion, and seeks to build long-term sustainable value by working with management teams to implement strategic and operating initiatives.  For more information, please visit www.caleracapital.com.