Tower Arch Capital, LP – a Salt Lake City, UT-based investment firm – recently announced the closing of Tower Arch Partners III, LP and its parallel investment entity with $750 million of capital commitments. Fund III has closed at its hard cap in a single closing and was substantially oversubscribed.
The investors include current and former management team members, foundations, diversified financial institutions, university endowments, and family investment offices. And Tower Arch Capital professionals are significant investors personally and remain, collectively, the largest investor across all three funds – driving alignment between the firm and its Limited Partner base. And 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.
Fund III’s investment focus will continue to be in the lower middle market, targeting transformational opportunities where founder and family-owned businesses with strong management teams are looking for a capital partner to help with growth, strategic support, and professionalization. And most of the platform companies targeted by Tower Arch have EBITDA between $5 and $30 million, with smaller add-on acquisitions sought for existing portfolio companies.
Shannon Advisors acted as placement agent and Ropes & Gray acted as legal counsel.
KEY QUOTES:
“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. 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.”
— David Topham, Partner and Co-Founder of Tower Arch Capital
“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. We are also pleased to have many of our previous management team members join us as investors in Fund III.”
— Rhett Neuenschwander, Partner and Co-Founder of Tower Arch Capital
