Sunstone Partners
Sunstone Partners is a San Mateo-based growth equity private equity firm investing $75M-$200M in profitable AI and technology-enabled services and software companies across North America, with $1.7 billion committed across three funds since 2015.
- Company typePrivate
- Founded2015
- HeadquartersPalo Alto, United States
- Headcount11–50
- GTM typeB2B
- OfferingServices
What Sunstone Partners does
Sunstone Partners is a growth-oriented private equity firm founded in 2015 as a spin-out of the growth equity team of Trident Capital. The firm invests $75M-$200M per portfolio company in profitable, capital-efficient AI- and technology-enabled services and software businesses, primarily in North America, targeting companies with at least $20M in revenue and 20%+ growth. It executes both majority control deals and minority growth equity, often as the first institutional capital partner, and supports portfolio growth through capital, add-on M&A funding, and an in-house Portfolio Operations Group spanning talent, FP&A, and AI architecture.
The firm is led by four co-founders (Gustavo Alberelli, Mike Biggee, John Moragne, Arneek Multani) who collectively bring 70+ years of technology investing experience from Trident Capital. Sunstone has raised three successive funds since inception, with Fund I closing at $300M in April 2016 (oversubscribed without a placement agent) and Fund III closing at its $925M hard cap in December 2025, bringing total committed capital to $1.7 billion. The portfolio spans approximately 15 active companies across cybersecurity (Avertium, NetSPI, Clearwater), healthcare IT and services (ProgenyHealth, Knowtion Health, MedTech Solutions, TelliHealth), Oracle and AI consulting (Peloton Consulting Group, KMS Technology, OSF Digital, 66degrees), UX research (UserZoom/UserTesting), event technology (Stova), and business services (EverService, Vcheck Global, Nexa).
The business operates on a standard private equity revenue model: management fees (typically 1.5%-2% annually on committed capital) provide a stable base, while carried interest (typically ~20% of profits above an 8% hurdle) generates performance-linked upside on exits. Sunstone's LP base is diversified across university endowments, foundations, family offices, and pension funds. The firm is headquartered in San Mateo, California, was previously known as TC Growth Partners, and has been recognized on Inc. Magazine's Founder-Friendly Investors list for five consecutive years.
Sunstone Partners firmographics
Firmographics- Name
- Sunstone Partners
- Legal name
- Sunstone Partners Management, LLC
- Website
- https://sunstonepartners.com
- Company type
- Private
- Founded year
- 2015
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- Sunstone Partners is a San Mateo-based growth equity private equity firm investing $75M-$200M in profitable AI and technology-enabled services and software companies across North America, with $1.7 billion committed across three funds since 2015.
- Ownership category
- akta.pro rank
Sunstone Partners industry classification
Industry- Product category
- Private Equity / Growth Equity Investment Services
- NAICS
- Portfolio Management and Investment Advice (523940), All Other Financial Investment Activities (52399)
- SIC
- Investment Advice (6282)
- akta.pro primary industry
- Multi-Sector / Generalist Growth Equity (FSANACAO)
- akta.pro secondary industries
- Sector-Focused Venture Capital (Vertical Specialists) (FSANAAAD), Business Services (B2B) Growth Equity (FSANACAD)
Keywords
Where Sunstone Partners is headquartered
LocationHeadquarters
- HQ city
- Palo Alto
- HQ country
- United States
- HQ region
- North America
Offices2 records
Markets served
Sunstone Partners business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure
Revenue model
- Management Fees: PE firms typically charge management fees on committed capital under management, typically 1.5-2% annually.
- Carried Interest (Carry): Performance-based fees typically 20% of profits above a hurdle rate, earned upon successful exits of portfolio companies.
Go-to-market motion1 record
Distribution channels1 record
Marketing channels4 records
Sunstone Partners product offering
Product offeringCore offering
Sunstone Partners is a growth-oriented private equity firm that makes majority and minority investments ranging from $75 million to $200 million in technology-enabled services and software companies with $20M+ revenue and +20% growth. The firm acts as a long-term capital partner to founders and management teams, providing investment capital plus operational support through its Portfolio Operations Group, talent recruitment, AI expertise, and M&A add-on acquisition capabilities. The firm invests primarily in North America across AI, cloud, cybersecurity, healthcare IT, and marketing tech verticals, raising capital from institutional limited partners into successive funds.
Product overview
Sunstone Partners is a private equity firm, not a technology product company. It does not develop or sell technology products. The firm provides growth equity investment and buyout services to technology-enabled services and software companies. Its offering consists of investment capital, strategic guidance, operational support, and access to a network of industry partners for portfolio companies.
Differentiator
Problem solved
Functional benefit
Products and services
- Sunstone Partners I, L.P. (Growth Equity Fund I) A $300 million growth equity private equity fund that makes majority and minority investments in technology-enabled services and software companies, often serving as the first institutional capital partner. Targeted profitable, capital-efficient companies with $20M+ revenue and +20% growth.
- Sunstone Partners III (Growth Equity Fund III) A $925 million private equity fund providing growth equity and growth buyout investments in profitable technology-enabled services and software companies, targeting $50 million to $150 million equity per portfolio company.
- Portfolio Operations Group In-house operational support function provided to portfolio companies across talent recruitment (executive search), AI architecture, FP&A and portfolio reporting, and strategic guidance. Includes Operating Partners and Operating Advisors who serve as Executive Chairmen, Board Directors, and executive coaches.
- Growth Equity & Buyout Investments Direct majority and minority equity investments of $75M-$200M per portfolio company in technology-enabled services and software businesses with $20M+ revenue and +20% growth. Includes funding for organic growth and acquisition financing.
Quantifiable outcome
- Multiple successful exits including Teladoc (NYSE: TDOC), NetSPI (acquired by KKR), Onica (acquired by Rackspace), Thirdera (acquired by Cognizant)
Companies that use Sunstone Partners
Customer profileSegments3 records
Ideal customer profiles2 records
Sunstone Partners technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Sunstone Partners partnerships and signals
Strategic signalScale indicators7 records
Recent moves9 records
Expansion highlights5 records
Sunstone Partners competitors and assessment
Company assessmentDirect peers
- Insight Partners: Insight Partners is a leading global growth equity investor in technology and software-enabled services, writing large checks in the $50M-$500M+ range. It directly competes with Sunstone for growth-stage tech-enabled services investments, but operates at materially larger AUM and with global reach.
- Summit Partners: Summit Partners invests growth equity in technology-enabled services and software companies, frequently as the first institutional partner. Its sector focus, check size range ($50M-$500M+), and founder-friendly positioning closely parallel Sunstone's approach.
- TA Associates: TA Associates is a global growth private equity firm targeting technology, services, and healthcare companies with $25M-$500M+ investments. Its sector breadth in tech-enabled services and healthcare IT directly overlaps Sunstone's investment thesis.
- JMI Equity: JMI Equity is a growth equity firm focused exclusively on software and tech-enabled services companies, often investing as the first institutional capital. Its fund size and sector focus closely mirror Sunstone's positioning.
- Great Hill Partners: Great Hill Partners invests in mid-market growth-stage technology, services, and consumer companies, frequently in B2B software and tech-enabled services. Its check size and sector overlap with Sunstone make it a direct comparable.
- PSG Equity: PSG is a growth equity firm specializing in software and tech-enabled services, often partnering with bootstrapped, profitable companies. Its target company profile (capital-efficient, $20M+ revenue, +20% growth) is nearly identical to Sunstone's stated criteria.
- Mainsail Partners: Mainsail Partners is a growth equity firm focused on bootstrapped, profitable B2B software and tech-enabled services companies, frequently as the first institutional partner. Its founder-friendly orientation and lower-middle-market check sizes directly mirror Sunstone's approach.
- Accel-KKR: Accel-KKR is a tech-focused private equity firm investing in middle-market software and tech-enabled services companies. Its growth equity and control deal structures, plus sector overlap, make it a relevant comparable.
Broad incumbents
- Thoma Bravo: Thoma Bravo is a much larger software-focused private equity firm managing tens of billions, with significant overlap in cybersecurity, healthcare IT, and B2B software. While it targets larger buyouts, it is an incumbent competitor for the same enterprise software and tech-enabled services opportunities.
- Vista Equity Partners: Vista Equity Partners is one of the largest software-focused PE firms globally, with deep expertise in enterprise software and tech-enabled services. It overlaps with Sunstone on software and tech-enabled services investments but operates at meaningfully greater scale.
Market position
Strengths4 records
Weaknesses4 records
Competitive moat4 records
Key risks6 records
Key highlights6 records
Customer concentration
Sunstone Partners social profiles
Digital presenceSunstone Partners financial estimates
Financial estimateRevenue estimate
Valuation estimate
Sunstone Partners leadership team
Management profileNumber of profiles
Profiles24 records
Sunstone Partners funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Sunstone Partners M&A and investment
M&A and investmentM&A6 records
Investments20 records
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Sunstone Partners
What does Sunstone Partners do?
Sunstone Partners is a growth-oriented private equity firm that makes majority and minority investments ranging from $75 million to $200 million in technology-enabled services and software companies with $20M+ revenue and +20% growth. The firm acts as a long-term capital partner to founders and management teams, providing investment capital plus operational support through its Portfolio Operations Group, talent recruitment, AI expertise, and M&A add-on acquisition capabilities. The firm invests primarily in North America across AI, cloud, cybersecurity, healthcare IT, and marketing tech verticals, raising capital from institutional limited partners into successive funds.
Is Sunstone Partners a public or private company?
Sunstone Partners is a private company. It is classified as management employee owned and is currently operating.
When was Sunstone Partners founded?
Sunstone Partners was founded in 2015. It employs 11 to 50 people.
Where is Sunstone Partners based?
Sunstone Partners is headquartered in Palo Alto, United States, in the North America region.
How does Sunstone Partners make money?
Two revenue lines are on record. Management Fees are the primary driver. The others are carried Interest (Carry).
Who are Sunstone Partners's main competitors?
Direct peers on record are Insight Partners, Summit Partners, TA Associates, JMI Equity, Great Hill Partners, PSG Equity, Mainsail Partners and Accel-KKR. Broad incumbents are Thoma Bravo and Vista Equity Partners.
Does Sunstone Partners have an API?
No public API is recorded for Sunstone Partners.
What industry is Sunstone Partners in?
Sunstone Partners's product category is Private Equity / Growth Equity Investment Services. Its primary akta.pro industry code is FSANACAO, Multi-Sector / Generalist Growth Equity, with a secondary code of FSANAAAD, Sector-Focused Venture Capital (Vertical Specialists). Its NAICS code is 523940 and its SIC code is 6282.