Clearwater Receives Strategic Growth Investment from Sunstone Partners
New partnership will strengthen Clearwater’s innovation, expansion and ability to secure healthcare and defense industrial base critical infrastructure sectors
NASHVILLE, Tenn.--(BUSINESS WIRE)--Clearwater, (or “the Company”) the largest pure-play provider of cybersecurity and compliance solutions for the healthcare industry, today announced a strategic investment from Sunstone Partners, a growth-oriented private equity firm focused on advancing technology-enabled services and software companies. Through the investment, Sunstone Partners has acquired majority ownership of the company from Altaris, LLC and other existing shareholders. Terms of the transaction were not disclosed.
“Sunstone Partners’ investment is a powerful endorsement of Clearwater’s strategy, people and impact. It gives us the resources to expand, innovate and strengthen our role as a trusted cybersecurity and compliance partner." Clearwater President Baxter Lee
With this partnership, Clearwater is poised to continue scaling its managed services, consulting, and software offerings, to deliver even greater value to healthcare and defense industrial base clients (served by its Redspin division), all of which are navigating increasingly complex cybersecurity and compliance challenges.
As part of the transaction, Steve Cagle will transition from his role as Clearwater CEO to a Board advisory role. Baxter Lee has been promoted to company President; Lee has served as Clearwater CFO since May 2018, and he has been instrumental to the Company’s growth over his nearly eight years of service. He brings extensive financial and operational management expertise, and a deep understanding of healthcare services and technology, to the role.
Brian McManamon will continue to serve as President of Clearwater’s Redspin division and General Manager of the company’s Managed Security Services and Managed Cloud Services unit.
“There has never been a more critical time to help organizations secure their data and operations,” Lee said. “Sunstone Partners’ investment is a powerful endorsement of Clearwater’s strategy, people and impact. It gives us the resources to expand, innovate and strengthen our role as a trusted cybersecurity and compliance partner. Most importantly, we remain committed to delivering the same exceptional service and outcomes our clients have come to expect.”
The partnership builds on Clearwater’s reputation as a leader in the healthcare cybersecurity and compliance market. Earlier this year, Clearwater was recognized as the leading cybersecurity consulting firm specializing in healthcare in Black Book Research’s Top 100 Healthcare IT Advisory and Consulting Project Areas in Highest Demand for 2025. Clearwater also was recognized in Modern Healthcare’s 2024 Best in Business Awards in the Cybersecurity category.
The Company’s Redspin division is a leader in Cybersecurity Maturity Model Certification (CMMC) services for the defense industrial base. In October 2024, Redspin was the first CMMC Third-Party Assessment Organization to receive re-certification, and soon after, the Redspin Ready-managed cloud program was named “Critical Infrastructure Cybersecurity Solution of the Year” in CyberSecurity Breakthrough’s 8th Annual Awards.
“Clearwater has built an extraordinary platform for driving cybersecurity and compliance excellence across the healthcare ecosystem and the defense industrial base,” said Gustavo Alberelli, Managing Partner & Co-Founder at Sunstone Partners. “We are thrilled to partner with the Clearwater team to help accelerate their growth and deepen their impact on key critical infrastructure sectors.” Alberelli joins the Clearwater Board, along with Ankur Rathi, Partner at Sunstone Partners.
Scott Hammack, Operating Partner at Sunstone Partners, has been appointed Executive Chairman of Clearwater’s Board of Directors. Hammack brings decades of experience leading and growing technology-enabled cybersecurity and compliance businesses, most recently serving in Executive Chairman roles at VCheck and NETSPI.
Stephens served as exclusive financial advisor and ArentFox Schiff served as legal advisor to Clearwater and Altaris, LLC in the transaction. Choate Hall & Stewart LLP acted as legal advisor to Sunstone Partners.
About Clearwater
Clearwater helps organizations across the healthcare ecosystem move to a more secure, compliant, and resilient state so they can achieve their missions. The company provides a deep pool of experts across a broad range of cybersecurity, privacy and compliance domains, purpose-built software that enables efficient identification and management of cybersecurity and compliance risks, managed cloud services, and a 24/7 Security Operations Center with managed threat detection and response capabilities. To learn more, visit www.clearwatersecurity.com.
Redspin, a division of Clearwater, specializes in enhancing the cyber readiness and resilience of federal and Defense Industrial Base (DIB) organizations. As one of the first Authorized CMMC 3rd Party Assessment Organizations (C3PAOs) and one with the most assessment experience, Redspin provides guidance to federal organizations seeking CMMC certification to reduce cyber risks and protect sensitive information. To learn more, visit www.redspin.com.
About Sunstone Partners
Sunstone Partners is a growth-oriented private equity firm that invests in AI- and Technology-enabled services and software companies. The firm seeks to partner with exceptional management teams, often as their first institutional capital partner, to help accelerate organic growth and fund acquisitions. Founded in 2015, the firm has $1.7 billion committed capital to its three funds. Sunstone Partners has been recognized as one of Inc. Magazine’s “Founder-Friendly Investors” list in 2020, 2021, 2022, 2023 and 2024. For more information, visit www.sunstonepartners.com