Tonka Bay Closes Fund IV

Tonka Bay Equity Partners has closed its fourth fund, Bayview Capital Partners IV LP, with $200 million of capital.

Tonka Bay invests in companies that have between $20 million and $50 million of revenue and EBITDA between $2 million and $8 million. Sectors of interest include highly-engineered manufacturing, value-added distribution, and business services. The firm was founded in 1998 and is based in the Minneapolis suburb of Minnetonka.

The new fund is led by partners Steve Soderling, Shane Slominski, Cary Musech, Peter Kooman, and principal Kam Kielhorn.

“We are thrilled with the response from our investors and fortunate to exceed our initial target,” said Mr. Soderling. “Our consistent and focused investment strategy is to provide patient, personalized and collaborative capital to entrepreneurial private businesses while generating attractive returns for our investors. We believe Tonka Bay has a unique skillset to effectively grow and develop private companies that have not previously had outside investors.”

Tonka Bay’s existing portfolio includes Engineered Specialty Products, a Georgia-based supplier of gauges, thermometers, instruments and accessories to industrial end markets; Fenix Group, a Minnesota-based manufacturer of industrial coatings and specialty concretes; NuSource Financial, a Minnesota-based technology provider of ATM, branch transformation and security services to financial institutions; Quick Cable, a Wisconsin-based maker of battery connectors, cable, and cable assemblies for the energy storage industry; Seaway Plastics Engineering, a Florida-based provider of plastic molded parts for prototype and low-volume production runs in the medical, defense and commercial markets; United Skin Care Specialists, a Minnesota-based dermatology practice acquisition company that provides management services to physicians and practices.

Since its founding in 1998, Tonka Bay has raised over $550 million of capital, invested in 37 portfolio companies, and completed more than 70 add-on acquisitions.

Tonka Bay’s earlier fund, Bayview Capital Partners III LP, closed with $150 million in capital in October 2011.

Private Equity Professional | August 10, 2020

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