This paper presents an automated partitioning strategy to divide a design into a set of partitions based on design hierarchy information. While the primary objective is to use these partitions in an Incremental Design flow for compile time reduction, the performance of the partitioned design should not be degraded after partitioning. Experimental results using the incremental design feature of Quartus CAD tool from Altera show that our algorithm can generate partitioning solutions comparable with a set of manually partitioned real industrial circuits and results in more than 50% compile time reduction.