Sunstone Partners, a Palo Alto, Ca-based newly formed growth equity firm, closed its first fund, at $300m.
Sunstone Partners I, L.P., with an initial targeted at $200m, was oversubscribed by university endowments, corporate pension plans, foundations, insurance companies, investment advisors, state and government retirement systems and family offices.
A spin-out of the growth equity team of Trident Capital, a multi-stage investment firm with seven funds and $1.9 billion of capital under management since 1993, Sunstone Partners was initially known as TC Growth Partners. The team will continue to lead growth equity investments and majority recapitalizations/buyouts in technology-enabled services businesses with a history of capital efficiency.
Target companies will have the following financial criteria:
– Annual revenue of at least $10 million;
– Revenue growth greater than 20% per year; and
– Breakeven or profitable.
The firm will focus on four core industry sectors:
– Healthcare IT,
– Internet and Marketing Services,
– Cloud and Enterprise IT, and
Equity investments will range from $15 to $75m per portfolio company.
The leadership team includes Gustavo Alberelli, Michael Biggee, John Moragne and Arneek Multani, who have over 60 years of cumulative investment experience, most of which have been working together at Trident, and have together led 46 individual investments.
In addition, the team includes managing director of portfolio operations John Reardon and operating partners Jeff Rich and Scott Hammack.
In 2015, Sunstone Partners closed its first investment, a $34m financing of UserZoom Technologies, a user experience research and testing software-as-a-service platform.