Metrocities Mortgage, LLC has been bought out by a private equity fund group looking to get into the mortgage industry. Sherman Oaks-based Metrocities will be part of Prospect Mortgage Co., LLC., a portfolio company owned by Sterling Capital Partners, an equity fund group based in Chicago and Baltimore. Metrocities Mortgage, however, will continue to operate under its own name. “I am excited about the potential synergies between Sterling and Metrocities,” said Metrocities founded and CEO Paul Wylie. “This recapitalization allows us to enhance all areas such as technology, marketing and loan products. It gives us new resources to continue our growth in 2007 and beyond.” Terms of the transaction were not disclosed. Prospect Mortgage’s investment in Metrocities makes the firm the majority interest, Wylie said. Wylie is an equity partner in Prospect. Prospect chose Metrocities as its vehicle to enter the mortgage industry because of its highly regarded joint venture program, talented management team, and positive company culture, said Prospect Mortgage CEO Mark Filler. Sterling Capital assumed controlling interests in middle-market companies through equity investments ranging from the $15 million to over $100 million per company in the financial services, education, healthcare, business services, and technology industries. Metrocities was founded in 1989 with five employees and has grown to close on more than $5 billion in loans in 2006. Along with the Sherman Oaks headquarters, the company has offices in North Carolina, Arizona and Pleasanton, Calif. In 2006, Metrocities received its second consecutive CustomerSat ACE Award for mortgage borrower satisfaction based on 96 percent client satisfaction rating tallied from independent customer satisfaction surveys. As of December, the company was involved in 200 joint ventures with real estate, financial planning, credit union, alumni associations and builder and construction companies.