Bluestone Equity Partners is nearing full deployment of its inaugural fund and continues to see ample opportunities in “picks and shovels” businesses supporting sports, media and entertainment, according to Walker Brumskine, a partner at the firm.

The fund, which closed in 2023 on USD 300m and was topped up to USD 350m in early 2026, has made 10 investments to date. It has capacity for one more deal, which Brumskine expects to announce shortly. He added that a sale process is underway for one portfolio company, with as many as three earmarked for exit next year.

Established by Bobby Sharma, the New York-based manager looks to differentiate itself in an increasingly crowded sports investment ecosystem by focusing on the infrastructure behind sports businesses rather than buying minority stakes in teams and leagues.

This has prompted Bluestone to pursue long-term investment themes around youth sports, fan participation, and technology-enabled experiences. The youth sports opportunity, for example, is rooted in the continued evolution of college athletics and families spending more on training.

“If you had a 13- or 14-year-old rock-star athlete, historically that first payday was 10 years in the future,” Brumskine said. “That’s been pulled forward to six years in the future.”

Last year Bluestone led a USD 40m growth round for sports recruiting marketplace Scorability, viewing the business as a beneficiary of this trend. The platform serves more than 1m youth athletes and connects them with thousands of college coaches.

Participation point

Within fan participation, there’s an emphasis on enabling fans to be more than just passive spectators. This led to a 2024 investment in Volo, the largest recreational sports operator in the US, with more than 500,000 annual registrations across 17 markets.

“Without hyperbole, you can show up in any city in the US next week and find a social kickball or softball game,” Brumskine added.

Volo also reflects Bluestone’s preference for buy-and-build strategies. There have been three add-on acquisitions to date: ZogSports, Fray and Clubwaka Miami. Brumskine noted that recreational sports is “probably one of the most fragmented industries I’ve ever been exposed to.”

Selkirk Sport, a leading pickleball equipment and sportswear brand in which the manager made an investment earlier this year, also fits the fan participation and consolidation profile. Selkirk has already completed an acquisition of Bread & Butter Pickleball.

Bluestone made its European debut this year – under the technology-enabled participation theme – through a USD 55m investment in Poolhouse. The UK-based company, founded by the creators of Topgolf and Puttshack, has developed a proprietary interactive pool-table technology known as BillyQ.

“It feels like the pool table has become a giant interactive iPhone with graphics floating around, and you’re playing on top of it,” Brumskine explained, adding that Bluestone will help drive global expansion.

Other value creation levers typically include commercial introductions and strategic partnerships, business development and governance support, as well as M&A. Sharma’s longstanding relationships across the sports ecosystem, from teams and federations to agencies and rights holders, are also made available to portfolio companies.

Sweet spot

The same network is also a source of deal flow, with Brumskine noting that four of the 11 completed or pending Fund I investments originated through inbound approaches from founders or CEOs.

Bluestone’s sweet spot is cash-flow-positive and EBITDA-positive businesses that can accept up to USD 50m in equity and offer a clear path to buyout-level returns.

It prefers the lower middle market, with Brumskine estimating that roughly 40% of transaction value across the sports, media and entertainment landscape resides in this segment. He describes the mobilization of capital in search of larger opportunities as an attractive supply-demand imbalance.

That does not mean investors can ignore valuation discipline, however. “You can have a really attractive company that’s a bad investment because it’s at the wrong price,” Brumskine said. “It’s hard to get seduced by HVAC [heating, ventilation and air conditioning] roll-ups but sports, it’s cool, it’s fun.”