Sunstone Partners said Oct. 16 that its second fund closed at its $475 million hard cap. Sunstone, of San Mateo, seeks to invest $25 to $75 million of equity in software and technology-enabled services companies that have annual revenue of at least $10 million. Sectors include Cloud, cybersecurity, healthcare IT and marketing services.
SAN MATEO, Calif., Oct. 16, 2019 /PRNewswire/ — Sunstone Partners, a San Mateo, CA-based growth equity firm founded in 2015, announced today the closing of its oversubscribed second fund, Sunstone Partners II (“Fund II”), at its $475 million hard cap of limited partner commitments. Sunstone Partners’ Fund I and Fund II together have nearly $800 million of committed capital.
Gustavo Alberelli, Managing Director, said, “We are grateful to Sunstone’s existing and new investors who share our excitement for the opportunities that lie ahead. 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.”
Fund II’s investors include university endowments, corporate pension plans, foundations, insurance companies, investment advisors, state and local retirement systems and family offices.
Sunstone Partners seeks to invest $25 to $75 million of equity per portfolio company in founder-owned software and technology-enabled services companies having annual revenue of at least $10 million, often as their first institutional capital partner. The firm focuses on four core industry sectors – Cloud, Cybersecurity, Healthcare IT and Marketing Services. Since its founding in 2015, Sunstone has grown to a team of 20 investment professionals, operating executives and administrative personnel.
“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. 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,” said Mike Biggee, Managing Director.
Arneek Multani, Managing Director, said, “We are proud of the platform we have built at Sunstone and are excited to continue our mission of finding and building great businesses. 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.”
About Sunstone Partners
Sunstone Partners is a growth equity firm focused on majority and minority investments in technology-enabled services and software businesses. The firm seeks to partner with exceptional management teams, often as their first institutional capital partner, to help accelerate organic growth and fund acquisitions. The firm was founded in 2015 and has nearly $800 million of committed capital under its first two funds. For more information, visit www.sunstonepartners.com
SOURCE Sunstone Partners