Stone Arch Capital

Stone Arch Capital, LLC is a private equity firm based in Minneapolis, Minnesota, specializing in investments in lower middle market companies primarily located in the Midwest. Founded in 2003, the firm focuses on buyouts, industry consolidations, growth capital, and recapitalizations, typically investing between $10 and $25 million in companies with annual revenues ranging from $15 million to $150 million and EBITDA of $3.5 million to $30 million. Stone Arch Capital seeks to establish partnerships with management teams in the manufacturing and service sectors, aiming for sustainable operating margins of at least 10 percent. The firm generally targets businesses with enterprise values between $15 million and $100 million and prefers to take control, either through minority or majority stakes, while avoiding hostile transactions. Although its primary focus is within the Midwest, Stone Arch Capital may consider investments outside the region under specific circumstances.