Greenstone Partners, LLC

Greenstone Partners, LLC acts as the investment adviser and general partner to private pooled vehicles (not individual retail clients), providing discretionary portfolio management to investors in its fund structure; investors are generally expected to commit at least $5,000,000 although the firm may waive this requirement. The firm only manages assets on a discretionary basis for its fund(s) and does not participate in wrap fee programs.

The firm follows a value-oriented, margin-of-safety approach, limiting its investment universe to franchise businesses with sustainable competitive advantages and investing primarily in small- to mid-cap public companies that it believes are misunderstood by the market. Portfolios are typically concentrated (around eight to twelve positions) with a multi-year investment horizon, may hold sizable cash positions, and while the fund typically does not use leverage it is authorized to do so under its governing documents.

Compared with many peers, Greenstone engages third-party marketing and solicitation arrangements—disclosing that it has retained a third party for marketing, solicitation and ongoing investor servicing and noting that brokers may refer investors or provide capital-introduction and speaking opportunities—practices that can function like endorsements in its outreach. The firm also discloses investor-level features that can affect liquidity and alignment of interests, such as the ability to waive fees for certain investors, and an investor-level “gate” that can limit Class B withdrawals to 25% of a capital account in a quarter.