The New York-based alternative asset manager specializes in commercial real estate and structured credit investments.
The private debt specialist, which operates a dedicated secondaries strategy, has reportedly held talks with several international investors.
The investment in the Brazilian alternative asset manager will be made through a primary capital injection, with no existing partners selling their holdings.
Sterling is a mid-market private equity firm focused on the business services and distribution sectors.
The transaction allows the Minneapolis-based firm to retain majority ownership of an 18-building infill industrial portfolio in Atlanta.
The GP staker will support the Australian property investor's growth across distribution, product development, and institutionalization.
The transaction, expected to close in Q4, will support the growth of AREP's investment and development platform, including its vertically integrated data center strategy.
The deal marks Reality Growth's second investment since launching earlier this year as a dedicated GP stakes platform.
The sale will be at a premium to NAV and marks the GP stakes specialist's tenth realization since 2024.
Founded in 2008, Prime is a private commercial real estate credit platform with over $15 billion in AUM.
