STONE ARCH CAPITAL, LLC

Thesis

Stone Arch Capital is a private equity firm founded in 2003 and headquartered in Minneapolis, MN. They focus on control equity investments in lower to middle-market companies, primarily in the Midwestern United States, but selectively invest throughout the US and Canada. Their target companies typically have revenues between $20 million and $150 million and EBITDA between $5 million and $30 million. The firm partners with management teams to drive value through growth and operational improvements, seeking niche market leaders with strong profit margins, consistent profitability, high cash flow, protectable market positions, and less cyclical industries. Stone Arch Capital III closed at $205 million in 2015. Their equity investment sizes range from $10 million to $25 million, with deal sizes typically between $20 million and $100 million. While historically focused on the Midwest, they now selectively invest in Canada and have followed demographic growth into the Southeast and Gulf Coast. The firm focuses on established private companies, interested in add-on acquisitions or product extensions. As of May 2026, they are no longer investing in new platform businesses but are focused on growing and exiting their current portfolio. They evaluate over 400 opportunities annually and close 1-3 deals per year, sourcing deals through relationships in the Midwest. The team has diverse backgrounds in private equity, investment banking, accounting, consulting, and legal fields.

Related lists

• Series C+ investors based in Minneapolis, MN