Tower Arch Capital Closes Fund III at $750M

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Nov 28, 2023, 08:35 ET

SALT LAKE CITY, Nov. 28, 2023 /PRNewswire/ -- Tower Arch Capital, LP ("Tower Arch Capital") a Salt Lake City, UT-based investment firm, is pleased to announce the closing of Tower Arch Partners III, LP and its parallel investment entity (collectively, "Fund III") with $750 million of capital commitments. Fund III closed at its hard cap in a single closing and was substantially oversubscribed.

The fund's investors include current and former management team members, foundations, diversified financial institutions, university endowments, and family investment offices. 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. 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.

"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 David Topham, Partner and Co-Founder of Tower Arch Capital. "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."

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. 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.

"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 Rhett Neuenschwander, Partner and Co-Founder of Tower Arch Capital. "We are also pleased to have many of our previous management team members join us as investors in Fund III."

Shannon Advisors acted as placement agent, and Ropes & Gray acted as legal counsel.

About Tower Arch Capital

Headquartered in Salt Lake City, UT, Tower Arch Capital is a lower middle market private equity fund. Tower Arch partners with management teams of high-quality family and entrepreneur-owned companies to deliver long-term value. The firm brings operational, consulting, and financial expertise to their portfolio companies to give them the tools they need to achieve their full potential. For more information, please visit www.towerarch.com.

SOURCE Tower Arch Capital