Stone Arch Capital

About Us » Overview

Who We Are

The Stone Arch Capital team consists of professionals with a unique blend of private equity, investment banking, accounting, consulting and legal experience from firms such as Norwest Equity Partners, Churchill Equity Partners, SCF Partners, Piper Jaffray, Inc., Shearman & Sterling, Arthur Andersen, Lazard, Lifetouch Inc., PricewaterhouseCoopers, and TripleTree, LLC. Together, our team has a successful track record of investing in private equity, executing merger and acquisition transactions, and operating a wide variety of businesses. Collectively, Stone Arch Capital professionals have directed the purchase and sale of over 150 companies during their careers.

What We Do

Stone Arch Capital makes equity investments in lower middle market companies with revenues typically ranging from $20 million to $150 million. The firm focuses on companies located in the Midwest region in which Stone Arch Capital's principals have extensive relationships and transaction referral sources. Under unique circumstances, we will also examine and invest in companies located outside the Midwest. We target deal sizes between $20 million and $100 million, and invest in a wide variety of industries excluding real estate, technology, and commodity businesses. We partner with management teams to create long term value through growth opportunities and operational refinement.

Why We Are Different

Stone Arch Capital's focus is investing in lower middle market companies primarily located in the Midwest region of the United States. Frequently, these companies are not readily identifiable and manufacture products or provide services which are not widely recognized. We value these companies because they are stable, profitable businesses with opportunities for growth and improvement.

"...Strength, integrity, and endurance..."

We invest in people we trust and have often known for years. We strive to treat business owners, management teams, deal sources, advisors and investors with respect and complete honesty at all times. This approach may occasionally put us at a disadvantage. We are forthright about our views on valuation and company pros and cons. We refuse to play the game of overstating valuation or upselling the condition of a company to gain access to information or execute a letter of intent. Our feedback will be direct and honest. Our references and our word are valuable assets.

Our dealflow is strong and focused. With over 50 years of collective partner experience, having served as partners for two long established Midwestern-based private equity funds, and having directed the merger and acquisition practices of one of the largest investment banks in the Midwest, we are well connected with multiple layers of deal sources. This network enables Stone Arch Capital to source transactions on a relationship basis.

We bring a history of adding value through operational expertise. We have run both small and large businesses and engineered operating changes resulting in millions of dollars of margin improvements. By leaving the day to day operations of portfolio investments in the capable hands of our management teams, we are able to plan and deliver long-term strategic value to our investments.

In addition, we have assembled an experienced Advisory Council which brings us over 150 years of collective manufacturing, service, distribution and general management talent. Through these collective resources, we have developed an extensive network of operating executives across the country to call upon for functional and industry expertise. This operating expertise allows us to build value in our investments through identification of add-on acquisitions, product extensions, redundant or inefficient processes, personnel additions, and board membership. We are able to bring relevant operating expertise to each transaction we pursue.

Our collective experience allows us to uniquely position companies for liquidity. Having directed the purchase and sale of over 150 companies and overseen billions of dollars of equity capital markets offerings, we are well versed in recognizing logical exit and expansion strategies, timing for liquidity and logical buyers for businesses.