Stone Arch Capital

Stone Arch Capital, LLC is a private equity firm based in Minneapolis, Minnesota, founded in 2003. The firm specializes in buyouts, industry consolidations, growth capital, recapitalizations, and add-on acquisitions, primarily targeting lower middle market companies in the manufacturing and service sectors. Stone Arch Capital focuses on investments within the Midwest, particularly in states such as Illinois, Iowa, Indiana, and others, while remaining open to opportunities outside this region under specific circumstances. The firm typically invests 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. It aims to acquire control, either through minority or majority stakes, in companies with enterprise values between $15 million and $100 million that demonstrate sustainable operating margins of 10 percent or higher. Stone Arch Capital emphasizes forming partnerships with management teams built on trust and integrity, avoiding hostile transactions in its investment strategy.