Grindstone Partners

Grindstone Partners is a Virginia-based private equity firm that partners with management teams to create extraordinary shareholder value in small and midsized companies. The firm brings its operational, growth, M&A, and turnaround experience, along with a broad network of resources, to its portfolio investments. Grindstone invests in service, healthcare, software, and light manufacturing companies with high growth potential and revenue above $10 million. Transactions often involve family-owned businesses where liquidity is needed and are always in partnership with management.

Founded in 2009 by Michael Bluestein, Grindstone Partners focuses on lower middle-market companies, typically those with annual revenues between $10 million and $100 million. The firm operates primarily in the Mid-Atlantic region, targeting sectors such as service, healthcare, software, and light manufacturing. Grindstone Partners is known for its collaborative approach, working closely with management teams to professionalize and expand businesses, offering expertise in change facilitation and value-add capital for control or minority stakes.

Over the years, Grindstone Partners has been involved in several notable transactions. In 2019, the firm, alongside Boyne Capital Partners, sold its portfolio company, Fulcrum IT Services, to Huntington Ingalls Industries for $193 million. Additionally, in 2021, Grindstone Partners participated in the recapitalization of SageWater, a leading provider of plumbing infrastructure replacement and repiping services focused on the multi-family condominium and apartment building market. These transactions highlight Grindstone Partners' commitment to partnering with management teams to drive growth and create value in their portfolio companies.