Tower Arch Capital has closed its debut fund at an expanded hard cap of $272 million. The fund’s original target was $175 million. Tower Arch makes control investments in founder and family-owned businesses in the lower-middle market.
Initially backed by CEOs and management team members from prior investments, Tower Arch’s investor base now comprises a mix of institutions, including foundations, private pension plans, insurance companies, funds of funds, and family offices.
“We are thrilled with the reception we received during our fundraising efforts,” said David Topham, a Partner at the firm. “This successful fund raise is a testament to the quality of our team and, more importantly, represents a recognition of the opportunity for Tower Arch to create significant value by partnering with high-caliber business owners in the lower-middle market.”
Target investments for Tower Arch include control positions in entrepreneur and family-owned businesses. The firm invests across the United States and targets companies with revenue between $10 million and $100 million or EBITDA between $3 million and $15 million. Sectors of interest include business services, industrial, energy services, and specialty manufacturing. Tower Arch was founded by former professionals from Huntsman Gay Global Capital and include partners Rhett Neuenschwander, David Parkin, Ryan Stratton, and David Topham. The firm is based south of Salt Lake City in Draper UT (www.towerarch.com).
“Our team provides a unique set of strategic and operational skills to help business owners effectively grow their businesses and create value,” said Mr. Neuenschwander. “The fact that so many managers and business owners who have first-hand experience working with us are now investors and advisors to the fund is a fantastic endorsement. We are excited to build new relationships as we partner with more business owners to deploy this fund.”
Shannon Advisors acted as placement agent for the fund, and Goodwin & Procter served as fund counsel.
2014 PEPD • Private Equity’s Leading News Magazine • 7-16-14