Tower Arch Closes $750M Middle-Market Fund

Tower Arch Capital, a Salt Lake City, UT-based lower middle market private equity firm, closed its third fund, Tower Arch Partners III, LP, at its hard cap of $750 million, which was “substantially” oversubscribed.

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

The fund’s strategy will continue to be in the lower middle market. Most of the platform companies targeted have EBITDA between $5 million and $30 million, with smaller add-on acquisitions sought for existing portfolio companies.

“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.

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.

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