Investment Philosophy

 

Bluestone Investment Partners is a private equity fund that brings transformational capital to small companies that operate in the defense and government services arena.  The value of the capital we provide is enhanced by the extensive industry-focus and experience of our firm’s principals. Our total immersion in the defense and government services sector means that we can be a tremendous resource to our portfolio companies in virtually every aspect of their business.  Few firms can claim the unique combination of industry-focused intellectual and investment capital that Bluestone has assembled.

 

Investment Criteria

Bluestone believes that small companies present compelling investment opportunities.  Small businesses, however, often have limited access to capital as most traditional private equity firms and mezzanine lenders are geared toward supporting large and mid-sized companies.  Bluestone aims to fill the capital gap by focusing on investing in well-positioned small companies in the defense and government services sector.  Bluestone’s investment criteria are highlighted below:

 

Company Size:

  • Revenue: $10 - $40+ Million
  • EBITDA: $1 - $5+ Million

 

Company Characteristics:

  • Focus on defense and government related markets
  • History of growth and profitability
  • Prefer management to retain an ownership position

 

Type of investments:

  • Recapitalizations
  • Growth Capital
  • Majority Investments
  • Co-investments
  • Minority Investments
  • Mezzanine Investment

EXECUTIVE TEAM

 
John Allen
Bill Strang

Adding Value

The depth and breadth of our industry-focused resources enables us to provide our portfolio companies with value-added capital.  Some of the meaningful ways we help portfolio companies build value include the following:

  • Leveraging the access and relationships of Bluestone's principals to bring proven management and Board talent to portfolio companies;
  • Accelerating the organic growth of portfolio companies by leveraging the past experience of the fund's principals in building successful business development and sales organizations;
  • Advising portfolio companies on merger and acquisition strategies and assisting in the execution of merger and acquisition transactions;
  • Providing guidance regarding set-aside/small business contract transition strategies; and 
  • Assisting in setting the overall strategic direction of portfolio companies and positioning portfolio companies to build shareholder value.

Partnership with Management

Bluestone’s investment approach is to work with strong management partners. Our goal is to combine the insights, experience, and operational expertise of management with Bluestone’s wealth of resources and relationships. Working together, Bluestone and management are able to transform businesses and create value.  To that end, Bluestone is committed to providing the management teams of portfolio companies with meaningful equity ownership opportunities.


Representative Investments


Headquartered in Dulles, Virginia, CIS is a leading provider of secure communications equipment and computing solutions for a wide range of U.S. government customers. CIS is a leading player in a niche market focused on modifying Commercial-off-the-Shelf (COTS) communications and network equipment to support stringent government requirements to protect sensitive and classified information from illicit capture or manipulation.


GAP Solutions, Inc. provides a full spectrum of mission support services focused on emergency management, security and information management, managerial and administrative support, and logistics support. GAP Solutions' customer base includes the Department of Health and Human Services (HHS), Department of Homeland Security (DHS), Department of State (State), Department of Justice (DOJ), as well as various other civilian and defense agencies.