Investment Approach

Efficiency
Growth
System
Incentives
Partnership Example #1

Wholesale Produce Supply

Produce / Distribution

A leading distributor of fresh fruits and vegetables to grocery wholesalers and foodservice distributors.

Growth

Diversified product mix through dedicated investment Expanded geographic footprint Grew revenue 37% Increased headcount 35% Increased fleet of tractors/trucks 35% and trailers 20%

Efficiency

Improved EBITDA marginShortened AR days by 15%

System

Developed weekly and monthly reporting on key performance indicatorsRefined financial reporting outputs

Incentives

Management team members (non-owners) earned substantial ownership in NewCo that was realized upon sale

Disclaimer: Information about Ontario Drive & Gear Limited, Mitchell’s Oilfield Services, Inc., and Wholesale Produce Supply, LLC is provided solely to illustrate Stone Arch Capital’s investment approach, which involves fundamental asset analysis and active asset ownership. It should not be assumed that investments made in the future will be comparable in quality or performance to Ontario Drive & Gear Limited, Mitchell’s Oilfield Services, Inc., or Wholesale Produce Supply, LLC. Stone Arch Capital’s past investment experience is not intended to be indicative of the future results of any Stone Arch Capital fund. Past performance is not a guarantee of future results. There can be no assurance that investors in a Stone Arch Capital fund will not lose any of their invested capital. For a representative list of current and past investments of Stone Arch Capital, please refer to the “Companies” section.

We strive to treat business owners, management teams, employees, deal sources, advisors and investors with respect, honesty, integrity and transparency at all times.
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