Sunstone Partners has held a final, oversubscribed and hard cap closing of its second fund, Sunstone Partners II LP, with $475 million of capital.
Limited partners in the new fund include university endowments, corporate pension plans, foundations, insurance companies, investment advisors, state and local retirement systems and family offices. Sunstone closed its first fund, Sunstone Partners I LP, in April 2016 with $300 million of capital commitments.
“We are grateful to Sunstone’s existing and new investors who share our excitement for the opportunities that lie ahead,” said Gustavo Alberelli, a managing director of Sunstone. “This level of overwhelming support is a result of the positive response to our investment strategy, portfolio operations approach as well as the strong performance of our existing portfolio companies.”
Sunstone makes majority and minority equity investments of $25 million to $75 million in founder-owned software and technology-enabled services companies that have annual revenues of at least $10 million. Sectors of specific interest include cloud computing, cybersecurity, healthcare IT, and marketing services.
“Fund II will focus on growth equity and growth buyout investments in technology companies that we believe are poised for rapid growth and market share gains,” said Mike Biggee, a managing director. “Our sector-focused approach, extensive track record and collaborative portfolio operations model, position Sunstone to be the partner of choice to founders looking to scale their companies.”
In May 2019, Sunstone formed Avertium to acquire Arizona-based Terra Verde Security, Virginia-based TruShield Security Solutions, and Tennessee-based Sword & Shield Enterprise Security. The combined company provides managed cybersecurity services, compliance assessments, security advisory, and training services to more than 1,200 customers in the retail, healthcare, hospitality, financial services, manufacturing and public sectors. Avertium, led by CEO Jeff Schmidt, has more than 150 employees and has operations centers in Phoenix, AZ (headquarters) and Knoxville, TN.
“We are proud of the platform we have built at Sunstone and are excited to continue our mission of finding and building great businesses,” said Arneek Multani, a managing director. “With Fund II, we will continue to make investments in our team, operating capabilities and technology, that will position us to drive further success to our portfolio companies.”
Sunstone has a team of twenty investment professionals, operating executives and administrative personnel. The San Mateo, CA-based firm was founded in 2015 by Messrs. Alberelli, Biggee and Multani.
© 2019 Private Equity Professional | October 24, 2019