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Stone Arch Capital raises $200 mln for third private equity fund

Stone Arch Capital has closed its oversubscribed third private equity fund at a hard cap of $200 million. The target for Stone Arch Capital III was $175 million. According to the firm, it makes equity fundings in lower-middle market companies with revenues that usually average between $20 million and $150 million.


Stone Arch Capital has held a final close of its third private equity fund, Stone Arch Capital III, LP, with $205 million of capital commitments. The fund, which had a target of $175 million, was oversubscribed at its hard cap of $200 million of limited partner commitments and was raised in less than six months.

Stone Arch Capital makes control equity investments in lower middle market companies with revenues typically ranging from $20 million to $150 million. The firm focuses on companies located in the Midwest region in which Stone Arch Capital’s principals have extensive relationships and transaction referral sources.

Under unique circumstances, the firm will also examine and invest in companies located outside the Midwest.

Stone Arch Capital targets deal sizes between $20 million and $150 million, and invests in a wide variety of industries. The firm partners with management teams to create long term value through growth opportunities and operational refinement. Stone Arch Capital was founded in 2005 and is headquartered in Minneapolis, MN (