Granite Partners

Granite Partners operates as a private investment and long-term holding company, established in 2002 in St. Cloud, Minnesota. The firm was founded by Rick Bauerly, who currently serves as the CEO. His motivation stemmed from seeing local employers in Central Minnesota being acquired by outside investors and his own family's experience with selling their business. This led to the creation of a firm focused on preventing the typical private equity cycle of acquiring, leveraging, and then reselling companies within a short timeframe.

The company's core mission is to acquire and hold Minnesota-based companies for the long term, particularly to facilitate ownership succession when owners retire. Granite Partners was initiated with investments from 12 founding families with generational business ties to the St. Cloud area. The firm's strategy distinguishes itself by aiming for a "100-year sustainability" horizon for its portfolio companies, a philosophy that appeals to retiring owners concerned with their business's legacy. This long-term buy-to-hold strategy is executed through an evergreen fund structure.

Granite Partners targets established, profitable, and growing business-to-business companies that are leaders in their respective niche markets. The portfolio, referred to as the Granite Companies, is rooted in Minnesota but serves national and global customers across sectors like manufacturing, distribution, and services. Notable companies within the portfolio include DeZURIK, a valve technology manufacturer; GeoComm, a provider of 911 emergency systems; and Microbiologics, which supplies materials for quality control testing. The firm provides financial expertise and shared services, such as implementing NetSuite's ERP and CRM systems across its portfolio to standardize operations and fuel growth, while leaving approximately 80% of management to the individual companies.

The business model is designed to create value for all stakeholders, including investors, employees, and the local community. Revenue is generated through the growth and profitability of its portfolio companies, which collectively represent nearly $1 billion in equity value and employ over 2,500 people. Granite Partners actively seeks to grow its platform companies through strategic add-on acquisitions that bring new talent, technologies, and market access. This approach is part of a broader goal to enhance the communities where its companies operate, creating a positive economic and social impact alongside financial returns.

Keywords: private investment, long-term holding company, Minnesota business, succession planning, Rick Bauerly, evergreen fund, buy-to-hold strategy, stakeholder value, community impact, portfolio management, business-to-business, manufacturing investment, DeZURIK, GeoComm, Microbiologics, St. Cloud Minnesota, family business succession, sustainable investment, middle-market companies, strategic acquisitions