BLUESTEM CAPITAL COMPANY, LLC

Thesis

Bluestem Capital Company, LLC is a private equity firm founded in 1989 and headquartered in Sioux Falls, South Dakota. The firm emphasizes a hands-on, partnership-driven approach, rooted in Midwestern values of in-person communication and collaboration. Bluestem Capital focuses on investing in established companies with strong management teams, market-tested products, and significant barriers to entry. They invest in companies across diverse sectors including business services, consumer products, natural resources, medical, manufacturing, and real estate. The firm targets companies with robust management teams, proven products, and strong market positions, providing both capital and strategic guidance. Bluestem Capital prefers to invest in companies that are at various stages, from early to late-stage, with a particular focus on the Midwest region of the U.S. They also consider companies that are 6-10 years old and have a strong potential for growth. Investment criteria include high-integrity management teams with a substantial financial investment, well-received products with market barriers, a 'win-win' structure, industries the firm understands, and a strong group of co-investors. While specific AUM is not consistently detailed, one fund, Bluestem Core Strategies Fund, LLC, has approximately $6.8 million in assets. The firm has a history of managing various funds. Bluestem Capital has made numerous investments, with a reported average round size of $16 million. Their most recent tracked deal was a $30.0 million Series C Extension in Virtual Incision in September 2023. Bluestem Capital operates as a Registered Investment Adviser (RIA) and is an Exempt Reporting Adviser with the SEC.