Penstock Equity

No. Penstock is explicitly structured to take non-control equity positions in independent sponsor-led transactions. The firm's public mandate states a preference for working with sponsors who lead all aspects of the deal, with Penstock providing capital and, when requested, support through diligence, negotiation, and execution. The partners themselves are former independent sponsors who designed the firm to be a capital partner, not a competing buyer.

Penstock writes equity checks of $1 million to $5 million into U.S.-based companies generating at least $1 million in EBITDA, with total enterprise values under $40 million for initial platforms. The firm can provide additional capital to support add-on acquisitions. Penstock describes itself as industry-agnostic, though specific sector concentrations are not publicly disclosed.

Managing Partners Dave Hiemstra and Adam Wise lead investment decisions. Both are former independent sponsors who operated in the lower middle market before founding Penstock. The firm's website lists one additional team member, Associate Jagur Nafso.

Penstock's deal flow is fundamentally tied to its focus on independent sponsors. Because the firm does not originate or lead its own platform acquisitions, it relies on relationships with independent sponsor networks across the U.S. lower middle market. The Managing Partners' own backgrounds as former sponsors contribute to those origination channels.

Penstock has not publicly disclosed an AUM or committed capital figure. The firm acknowledges it operates as a committed fund with an explicit mandate to invest equity into independent sponsor-led buyouts, but specific fund size or aggregate deployment numbers are not published.