Sunstone Partners (“Sunstone”), a growth-oriented private equity firm that makes investments in technology-enabled services and software businesses, has been awarded RCP’s 2022 Deal of the Year. Sunstone was selected following its acquisition, development, and subsequent sale of NetSPI (the “Company”), which demonstrated extraordinary performance.
After a thorough review of approximately 100 realization events across our various portfolios in 2022, we selected Sunstone’s investment in NetSPI as our Deal of the Year because we believe it represents the very best of what small buyouts can produce for all stakeholders: adding value to portfolio companies by providing financial and human capital, as well as equity incentives to management to professionalize and institutionalize the business, growing it rapidly through add-on acquisitions and successfully integrating each so as to enhance the business’ value proposition for its customers, and then selling it upstream to a larger financial or strategic buyer for the benefit of management/employees, limited partners, and other shareholders.
RCP is an investor in several funds sponsored by Sunstone. Their sector-focused approach to building collaborative partnerships with companies by providing strategic guidance, data driven insights, operational best practices, and access to a network of industry leaders and partners has distinguished Sunstone from its peers. RCP believes their disciplined selection and vast experience in improving and growing businesses has made them one of the premier firms in the lower middle market.
ABOUT NetSPI
NetSPI is a leader in enterprise penetration testing, adversary simulation, and attack surface management. The Company offers a full suite of offensive security services through its Penetration Testing as a Service (PTaaS) delivery model and follow a technology driven, human delivered approach, where all of NetSPI’s services are supported by dynamic technology platforms as well as best-in-class cybersecurity talent. NetSPI’s global penetration testing team is trusted by 9/10 top U.S. banks, 3/5 FAANG companies, the top cloud providers, the world’s largest healthcare organizations, and many of the Fortune 500.
“We are honored to be recognized by RCP for our investment in NetSPI. Our NetSPI investment represents how Sunstone Partners’ team works collaboratively with a founder-led business through its next level of growth. Together, we expanded the management team and board of directors, grew the company’s talented base of personnel, instilled operational best practices, completed strategic acquisitions, and invested in enhanced technology-enabled customer solutions, which all helped NetSPI evolve and establish itself as the high-growth, profitable security leader it is today,” says Gustavo Alberelli, Co-Founder and Management Partner of Sunstone Partners.
ABOUT SUNSTONE PARTNERS
Sunstone Partners was founded in 2015 and has $1.7 billion of committed capital under its first three funds. The firm invests in majority and minority transactions in technology-enabled services and software businesses. Sunstone seeks to partner with exceptional entrepreneurs, often as their first institutional capital partner, to help accelerate organic growth and fund acquisitions. The firm has over 70 years of collective experience investing and helping technology companies achieve successful outcomes.
ABOUT RCP ADVISORS
Founded in 2001, RCP Advisors, a subsidiary of P10, Inc. (NYSE: PX), is a private equity investment firm that provides access to lower middle market private equity fund managers through funds-of-funds, secondary funds, and co-investment funds, as well as provides advisory and research services. With over $12.6 billion in committed capital and 55 full-time professionals as of March 8, 2023, RCP believes that it is one of the largest fund sponsors focused on the lower middle market segment of the North American private equity market.