Tower Arch Capital has closed its debut private equity fund on its expanded hard cap of $272 million. Fund I beat its original $175 million target. Tower Arch’s limited partner base includes chief executives and management team members of prior investments, along with foundations, private pension funds, insurance companies, fund of funds and family offices. The fund made its first investment in Future Telecom, Inc., which provides specialty boring services. Shannon Advisors worked as placement agent on the fundraising.
Tower Arch Capital, LP (“Tower Arch” or the “Firm”) announced that it has successfully closed its debut private equity fund at an expanded hard cap of $272 million. The fund was substantially oversubscribed relative to its target of $175 million.
Initially backed by CEOs and management team members from prior investments, Tower Arch’s investor base also comprises a mix of premier institutions, including foundations, private pension plans, insurance companies, funds of funds, and family offices. The Firm focuses on control investments in founder and family-owned businesses in the lower-middle market.
“We are thrilled with the reception we received during our fundraising efforts,” commented 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.”
Tower Arch invests across the United States and targets companies operating in the business services, industrial, energy services, and specialty manufacturing sectors. The Firm’s first investment, Future Telecom, Inc., provides specialty boring services, primarily to fiber and communications end markets.
Rhett Neuenschwander, a Tower Arch Partner, added, “Our team provides a unique set of strategic and operational skills to help business owners effectively grow their businesses and create value. 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.”
The Tower Arch founders include Rhett Neuenschwander, David Parkin, Ryan Stratton, and David Topham. Shannon Advisors acted as placement agent for the fund, and Goodwin & Procter served as fund counsel. For additional information, visit www.towerarch.com.
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