Bluestone Investment Partners has raised $196 million for the private equity firm's third buyout fund and intends to expand investments in the lower-middle government services industry. The Bluestone Investment Partners III fund received commitments from endowments, family offices and gatekeepers and reached its hard cap within six months.

"Our team looks forward to continuing our strategy of partnering with lower-middle market government services businesses and helping them achieve transformational growth," said Eric Wolking, a partner at Bluestone. "We are beyond grateful for the immense support we've received from both our existing and new limited partners," added John Allen, a co-founder and managing partner of Bluestone.