Lower middle market private equity firm
Bluestone Investment Partners
- HeadquartersMcLean, VA S1
- Founded2011 S5
- Websitebluestoneinv.com
- Last verifiedOctober 26, 2026
At a glance
| Latest fund | Bluestone Investment Partners III, $196M (Mar 2023) S6 |
|---|---|
| EBITDA range | $2M to $10M S2 |
| Revenue range | $15M to $150M S2 |
| Deal types | Platform, Add-on, Minority, Growth S2 |
| Geography | United States S2 |
| Sectors | IT Services & MSP, Cybersecurity |
What Bluestone Investment Partners buys
Bluestone Investment Partners is a McLean, Virginia private equity firm that invests only in companies selling technology, products and services to the U.S. defense and government market. It looks for businesses with $15 million to $150 million of revenue and $2 million to $10 million or more of EBITDA. Majority stakes are its preference, but it also does management buyouts, recapitalizations, growth capital, minority deals, co-investments and corporate carve-outs. Its current platforms cover federal cybersecurity, defense engineering and IT services, missile defense technology, intelligence community support and Navy ship maintenance.
Bluestone grew out of a McLean investment bank and closed its first private equity fund in 2011. It says it has raised more than $550 million and made over 30 investments, and its third fund closed at $196 million in 2023. Each platform is expected to grow through acquisitions: Precise Systems has bought five companies since Bluestone invested in 2023. A smaller government contractor is most likely to meet Bluestone as an add-on to one of these platforms.
Recent deals
Announced in the 24 months before October 26, 2026.
| Date | Company | Type | Sector | Source |
|---|---|---|---|---|
| Aug 2026 | Ternion CorporationHuntsville modeling and simulation software developer added to Precise Systems | Add-on | Source | |
| Jul 2026 | Delphinus EngineeringNavy ship maintenance and modernization firm; the founder handed the CEO role to a successor | Platform | Source | |
| July 2026 | Swift AscentSoftware, AI, cyber and aerospace support provider to the intelligence community and the Defense Department | Platform | IT Services & MSP | Source |
| Jun 2026 | BreakPoint LabsAI-enabled cyber operations and red team firm, Valiant Solutions' second add-on in six months | Add-on | Cybersecurity | Source |
| Feb 2026 | Abile GroupSecure network and cyber engineering provider to national security customers, added to Valiant Solutions | Add-on | Cybersecurity | Source |
| Feb 2026 | InTrack Radar Technologies and TektonuxMerged with Qualis to form a missile defense and space domain awareness company | Add-on | Source | |
| Sep 2025 | Mission Focused SystemsRoyersford, Pennsylvania systems engineering and prototyping firm added to Precise Systems | Add-on | IT Services & MSP | Source |
| Jul 2025 | CTI (Chesapeake Technology International)Maryland defense technology firm sold to Parsons in a deal valued at $89 million | Exit | Source | |
| Feb 2025 | cBEYONDataFederal budget, financial data and ERP services firm sold to SMX | Exit | IT Services & MSP | Source |
| Dec 2024 | Valiant SolutionsFederal cybersecurity provider founded in 2005; two government technology veterans joined its leadership | Platform | Cybersecurity | Source |
Portfolio by sector
From the firm's portfolio page S3.
Cybersecurity
- Valiant Solutions
IT Services & MSP
- Swift Ascent
- Precise Systems
Other
- Delphinus Engineering
- Qualis Corporation
Past investments: cBEYONData, CTI, Axim Geospatial, Intrepid Mission-Driven Solutions, Quadel Consulting, Omniplex World Services Corporation, GAP Solutions, CIS Secure Computing
Greymont’s take
How Bluestone Investment Partners fits a seller
Bluestone suits owners of government contractors, especially in defense IT, cybersecurity, engineering and mission support, who want a buyer that works only in that market and whose team has spent decades in it. It usually builds a platform and then buys smaller firms around it, so many sellers join an existing Bluestone company rather than becoming a new one. Valiant Solutions, for example, bought Abile Group and BreakPoint Labs within about four months of each other.
Leadership often changes when Bluestone invests. At Valiant, two outside government technology executives joined alongside the investment, and at Delphinus the founder handed the CEO role to a successor. An owner should ask whether Bluestone plans to bring in new leaders and what role the founder will keep. Holds can be fairly short: cBEYONData was sold in 2025, about three and a half years after Bluestone invested.
Questions owners ask
What size company does Bluestone look for?
Its criteria call for $15 million to $150 million of revenue and $2 million to $10 million or more of EBITDA, and the company must serve the U.S. defense and government sector.
Does Bluestone invest in government IT and cybersecurity contractors?
Yes. Its active platforms include Valiant Solutions, a federal cybersecurity provider it backed in December 2024, and Precise Systems, which provides engineering, program management and IT services to the Defense Department. Swift Ascent, added in July 2026, supports intelligence and defense agencies.
Will Bluestone take a minority stake?
It prefers majority investments, but its published criteria also list minority investments, growth capital, recapitalizations, management buyouts, co-investments and corporate carve-outs.
Who has bought Bluestone's companies?
Recent buyers have been larger government contractors. Parsons bought CTI in July 2025 in a deal valued at $89 million, and SMX bought cBEYONData in February 2025.
Sources
- S1Bluestone Investment Partners home page Accessed October 26, 2026
- S2About Bluestone Investment Partners (investment criteria) Accessed October 26, 2026
- S3Bluestone: Investments (active and realized, with platform investment dates) Accessed October 26, 2026
- S4Bluestone: News Accessed October 26, 2026
- S5Bluestone Closes Private Equity Fund (Washington Post summary, November 20, 2011) Accessed October 26, 2026
- S6Bluestone Closes Third Investment Fund (Washington Technology summary, March 24, 2023) Accessed October 26, 2026
- S7Bluestone Announces Strategic Investment in Valiant Solutions (December 18, 2024) Accessed October 26, 2026
- S8Delphinus Engineering Receives Backing from Bluestone (July 21, 2026) Accessed October 26, 2026
Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with Bluestone Investment Partners. Figures are as reported on the dates shown and may have changed. Request a correction