Tower Arch Capital has closed Tower Arch Partners III LP with $750 million of capital commitments. Fund III closed at its hard cap in a single closing and was substantially oversubscribed.
Limited partners in Fund III include current and former management team members, foundations, financial institutions, university endowments, and family investment offices. Tower Arch professionals are also investors in Fund III and remain, collectively, the largest investor across all three of the firm’s funds.
Tower Arch – based south of Salt Lake City in Draper, Utah – was founded by former professionals from Huntsman Gay Global Capital and includes partners Rhett Neuenschwander, David Parkin, Ryan Stratton, and David Topham.
“We are grateful for the strong support from our existing investor base, which led to a quick and efficient fund closing. We also look forward to associating with the many new limited partners who have joined us for Fund III,” said Mr. Topham. “This milestone is a testament to the team we have built at Tower Arch and to the outstanding entrepreneurs and management teams with whom we have partnered.”
With the closing of Fund III, Tower Arch now has $1.6 billion of assets under management across its three funds along with investor and management co-investments. Tower Arch closed its second fund in March 2019 at an oversubscribed hard cap of $450 million and its debut fund closed at its hard cap with $272 million of capital in July 2014.
Tower Arch invests in middle-market companies with revenue between $20 million and $150 million or EBITDA between $5 million and $30 million. Fund III has already acquired its first platform with details of the transaction to be released next week.
“We are proud of the relationships we have created since our inception with our investors and the business owners and management teams we partner with. We continue to find exciting opportunities where families and founders understand the importance of the collaboration and thoughtful alignment Tower Arch brings as a partner,” said Mr. Neuenschwander. “We are also pleased to have many of our previous management team members join us as investors in Fund III.”
Tower Arch used Shannon Advisors as its Fund III placement agent and Ropes & Gray provided legal services.
© 2023 Private Equity Professional | November 29, 2023
