Partners with Founders to Scale Leading Cybersecurity Platform
Gryphon Investors (“Gryphon”), a leading middle-market private investment firm, announced that it has completed a majority growth recapitalization of Fortreum (the “Company”), a leading cybersecurity services firm providing audit, advisory, and technical testing, assisting companies in regulated industries with certifications including FedRAMP, CMMC, ISO, PCI, SOC, and several others. This investment will support the Company’s next phase of growth through the expansion of its offerings and the acceleration of its tech-enabled solution development. Financial terms for the transaction were not disclosed.
Founded in 2020 and based in Lansdowne, VA, Fortreum offers a comprehensive suite of solutions across federal and commercial compliance frameworks, helping enterprises meet increasingly complex cybersecurity requirements. Fortreum delivers mission-critical, mandated services with a market leadership position and deep, recurring relationships across a blue-chip client base. The Company is known for XRAMP™, the continuous validation platform it pioneered to deliver ongoing checkpoints and reviews, streamlining the regulatory auditing function, reducing internal burdens and improving long-term readiness.
“Fortreum perfectly matches with the core investment criteria of Gryphon’s Technology Solutions & Services Group (“TSSG”). The Company is in a high-growth market with exciting secular tailwinds, is clearly an emerging market leader, provides customers with a compelling value proposition that translates to attractive economics, and has a backable team that shares an ambitious view of the future with us,” said Gabe Stephenson, Deal Partner and Co-Head of TSSG[RK1] , and Clint Kadolph, Principal in TSSG. Stephenson and Kadolph continued, “We have been actively evaluating the cybersecurity space for the last several years and believe that Fortreum sits in the most attractive segment of cybersecurity. We feel very fortunate to be able to partner with the Fortreum team to help accelerate the Company’s growth and innovation in the years to come.”
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As part of the transaction, the Company’s management team, including Co-Founder & CEO James Leach and Co-Founder & President Michael Carter, will retain a significant equity stake in the business. This partnership reflects Gryphon’s long-standing commitment to supporting founder-led, high-growth technology companies and helping them scale into category leaders, particularly by leveraging AI to accelerate growth and operational excellence.
Mr. Leach and Mr. Carter commented, “We are thrilled to partner with Gryphon, whose vision for the future of cybersecurity and regulatory compliance aligns closely with our own. We have built a leading company that is positioned for breakout growth. Gryphon’s proven track record scaling high-growth, technology-enabled services firms will help us further accelerate our momentum, strengthen our market position, expand XRAMP adoption and AI powered capabilities, and further enhance the value we deliver to our clients. We appreciate Gryphon’s dedicated focus to the technology solutions space and the operational expertise they will bring to Fortreum’s next chapter.”
Gryphon’s unique model of pairing deal and operations professionals together throughout the investment process was critical to the partnership with Fortreum being formed. Vikram Mahidhar, Gryphon Operating Partner and TSSG Co-Head, and Pavan Arora, Head of Gryphon’s AI Team and a member of Gryphon’s Operations Resources Group, said, “We see a compelling opportunity to help scale a next-generation cybersecurity platform. Combining Fortreum’s deep regulatory and technical expertise with Gryphon’s AI and automation capabilities will significantly enhance the value XRAMP delivers to clients and accelerate the build-out of the industry’s defining platform for modern compliance and continuous assurance.”
Fortreum represents Gryphon’s fifth platform investment in a Technology Solutions & Services company, following partnerships with 3Cloud (recently sold to Cognizant), Caylent, NewRocket, and phData.
AGC Partners acted as financial advisor to Fortreum. Holland & Knight acted as legal advisors to Fortreum. Kirkland & Ellis acted as legal advisor to Gryphon, and JP Morgan acted as financial advisor to Gryphon.
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