Stone Arch Capital

Stone Arch Capital is a private equity firm based in Minneapolis, Minnesota, that targets lower middle market companies in the Midwest. The firm specializes in buyouts, add-on acquisitions, growth capital, recapitalizations, and product or strategic extensions, as well as public or private transactions. It focuses on manufacturing and service industries and generally pursues control or minority stakes in portfolio companies, with a preference for operationally meaningful ownership and value creation through partnerships with management. Typical investments range from roughly 10 to 25 million in equity into companies generating 15 to 150 million in annual revenue and 3.5 to 30 million in EBITDA, with enterprise values commonly between 15 and 100 million and sustainable margins around 10 percent or higher. While primarily focused on the Midwest (notably Illinois to Wisconsin), it may consider opportunities outside the region under unique circumstances. The approach emphasizes patient, disciplined investment, trust, and collaboration with management teams, and the firm avoids hostile transactions.