Stone Arch Capital makes equity investments in leading private companies with revenues typically ranging from $20 million to $150 million and earnings before interest, tax, and depreciation (EBITDA) between $5 million and $30 million.
Stone Arch Capital primarily focuses on companies headquartered in the Midwest region of the United States. Although we focus on the Midwest, we will also selectively invest throughout the United States and Canada where we believe we can bring unique value.
Our team has over 100 years of experience investing in and building businesses in a wide variety of industries and markets. We pursue niche market leaders that display strong profit margins, consistent profitability and generate high cash flow.
The Stone Arch Bridge, located below St. Anthony Falls in Minneapolis, Minnesota is the only bridge of its kind over the Mississippi River, the Father of Waterways. Built by railroad baron James J. Hill in 1883, the sweeping curvature of the bridge was an architectural breakthrough in its day. For over 100 years, the bridge successfully created a pathway for commerce, connecting the East to the West.
This historical Stone Arch Bridge stands as a symbol of the visionary spirit of Midwestern business and of the Industrial Age that shaped the evolution of our nation. Its characteristics of strength, integrity, and endurance are fitting values for our fund.
Over 100 years of collective private equity experience
Purchase and sale of over 150 companies
Familiarity with private company ownership family transition issues for over three decades
Our feedback is prompt, direct and honest
We are forthright about valuation and company pros and cons
We refuse to overstate valuation or play “bait and switch” games
We consider the best interests of all stakeholders in the context of every investment (shareholders, management, employees, vendors, customers and the communities involved)
We believe our partnership with management is critical to success
We do not approach investments with a “template” or “fixed solution”
We tailor every investment structure to address the unique needs and interests of the business, business owner and management team involved
We provide capital for multiple purposes including share repurchases, management buyouts, debt recapitalizations, ESOP buyouts, add on acquisitions and organic company growth
We utilize conservative leverage structures to insulate our companies from unexpected economic downturns and provide our management teams with flexibility and capital to exploit growth opportunities
We roll up our sleeves to work with management
We offer a broad range of resources to our partners. In addition to growth capital and financing expertise, we provide ongoing support services for our portfolio, including financial analysis and modeling, strategic planning, identification and execution of add-on acquisitions, product line and service expansions, personnel additions, geographic and facility expansion, IT enhancement, process optimization, and succession planning
Our experienced Advisory Council brings over 150 years of collective manufacturing, service, distribution, and general operating talent
Our Limited Partners bring additional capital and specific industry expertise to support our portfolio investments
On average, our companies have grown revenue by 44% and employee headcount by 32% over the course of our investments