Tower Arch Capital
Tower Arch Capital is a Draper, Utah–based lower-middle-market private equity firm that makes $30M–$75M control investments in family- and founder-owned businesses with $5M–$30M EBITDA across business services, industrial, infrastructure, and specialty manufacturing verticals, managing approximately $1.6 billion across three funds.
- Company typePrivate
- Founded2013
- HeadquartersDraper, United States
- Headcount11–50
- GTM typeB2B
- OfferingServices
What Tower Arch Capital does
Tower Arch Capital is a Salt Lake City–based (headquartered in Draper, Utah) lower-middle-market private equity firm founded in 2016 that makes control investments alongside incumbent management teams in family- and founder-owned businesses. The firm targets companies with EBITDA between $5 million and $30 million and revenue between $20 million and $150 million, deploying $30 million to $75 million of equity per platform across verticals including business services, industrial services, infrastructure services, specialty manufacturing, technology and telecom, energy services, and consumer products. Since inception, Tower Arch has partnered with 23 platform companies and completed 45 add-on acquisitions.
The firm's product set consists of three private equity funds — Fund I (inaugural, size undisclosed), Fund II ($450 million, closed March 2019), and Fund III ($750 million, closed November 2023 at hard cap, substantially oversubscribed) — for a current aggregate of approximately $1.6 billion in AUM including co-investments. Notable portfolio companies include Intelligent Technical Solutions (IT managed services), ACS Manufacturing (data center structural enclosures), Miller Industries (modular systems for EV/automotive/data center end markets), HardRock Infrastructure Services (directional drilling for renewables/utilities), LifePort (aerospace and defense interiors), TD&I Cable Maintenance, SnugZ USA, and Documotion Research. The firm operates no proprietary technology product; its core offering is capital partnership combined with operational and strategic support to portfolio management teams.
Revenue is generated through two streams: recurring management fees charged to fund limited partners (industry-standard 1.5%–2.0% of committed/invested capital) and performance-based carried interest on successful exits. The go-to-market motion is enterprise field sales — directly sourcing control-buyout and recapitalization opportunities from business owners, supplemented by a formal referral program, content marketing, and earned media. Tower Arch is privately held by its founding partners (David Topham, Rhett Neuenschwander, Dave Parkin, and Ryan Stratton), who are also the largest investors in their own funds, structurally aligning GP and LP interests.
Tower Arch Capital firmographics
Firmographics- Name
- Tower Arch Capital
- Legal name
- TOWER ARCH CAPITAL, LP
- Website
- http://towerarch.com
- Company type
- Private
- Founded year
- 2013
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- Tower Arch Capital is a Draper, Utah–based lower-middle-market private equity firm that makes $30M–$75M control investments in family- and founder-owned businesses with $5M–$30M EBITDA across business services, industrial, infrastructure, and specialty manufacturing verticals, managing approximately $1.6 billion across three funds.
- Ownership category
- akta.pro rank
Tower Arch Capital industry classification
Industry- Product category
- Private Equity
- NAICS
- Portfolio Management and Investment Advice (52394), Other Investment Pools and Funds (5259)
- SIC
- Investment Advice (6282)
- akta.pro primary industry
- Micro-PE / Lower Middle Market ETA Funds (FSANALAG)
Keywords
Where Tower Arch Capital is headquartered
LocationHeadquarters
- HQ city
- Draper
- HQ country
- United States
- HQ region
- North America
Offices2 records
Markets served
Tower Arch Capital business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Marketing or Sales, Others
Revenue model
- Management Fees: Standard private equity fund management fees charged to fund investors
- Carried Interest: Performance-based carried interest from successful fund investments and exits
Go-to-market motion1 record
Distribution channels1 record
Marketing channels4 records
Tower Arch Capital product offering
Product offeringCore offering
Tower Arch Capital is a lower-middle market private equity firm that makes control investments alongside management teams in family and founder-owned businesses. The firm invests $30M-$75M per platform in companies with EBITDA of $5M-$30M and revenue of $20M-$150M, providing capital, operational support, strategic planning, and add-on acquisition assistance across business services, industrial services, infrastructure services, specialty manufacturing, technology and telecom, energy services, and consumer products.
Product overview
Tower Arch Capital is a Salt Lake City-based middle market private equity firm offering private equity investment products rather than a technology platform. The firm manages three funds (Fund I, Fund II at $450M, and Fund III at $750M) and provides investment services including control buyouts and recapitalizations. The firm targets family and founder-owned businesses with EBITDA of $5-30 million, investing $30-75M per platform in industries including business services, industrial services, infrastructure services, specialty manufacturing, technology & telecom, energy services, and consumer products. Their core offering is capital partnership combined with operational and strategic support, not a software product or platform.
Differentiator
Problem solved
Functional benefit
Products and services
- Tower Arch Partners Fund III A $750 million private equity fund targeting control investments in lower middle market companies with EBITDA between $5-30 million, focused on family and founder-owned businesses.
- Tower Arch Partners Fund II A $450 million private equity fund that closed at its hard cap, continuing the firm's strategy of partnering with family and founder-owned businesses in the lower middle market.
- Private Equity Investment Services Control buyouts and recapitalizations for family and founder-owned companies with revenue of $20-150 million or EBITDA of $5-25 million, providing capital, strategic support, and operational expertise.
Companies that use Tower Arch Capital
Customer profileNamed customers6 records
Segments3 records
Ideal customer profiles2 records
Tower Arch Capital technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Tower Arch Capital partnerships and signals
Strategic signalPartnerships
Ten partnerships are on record, tiered core and minor.
- Documotion Research InccoreTower Arch partnered with the Van Boom family to recapitalize Documotion Research Inc, manufacturer of StickyPOS, a patented linerless label and point-of-sale solution for restaurant, hospitality, and retail industries. Transaction financing provided by UMB Bank and KeyBank.
- LifePort (PAC Seating Acquisition)coreLifePort, a portfolio company of Tower Arch, acquired PAC Seating Systems, expanding aerospace interiors capabilities. PAC Seating is a manufacturer of highly engineered custom structural seating solutions for business jet and VIP aerospace markets.
- Miller IndustriescoreTower Arch partnered with the Miller family to recapitalize Miller Industries Holdings, a leading designer and manufacturer of highly engineered custom modular systems including air handling units, central utility plants, electrical substations, and specialty steel fabricated products. Miller serves blue-chip customers across electric vehicle, automotive, data center, and semiconductor end markets.
- Gibson, Dunn & Crutcher LLPminorLegal counsel for fund transactions
- Grant ThorntonminorAdvisory services for transactions
- Alvarez and MarsalminorAdvisory services for transactions
- LocktonminorAdvisory services for transactions
- Ropes & GrayminorLegal counsel for Fund III closing
- Reynolds Advisory PartnersminorAdvisor for Documotion Research transaction
- Morgan, Lewis & Bockius LLPminorLegal advisor for Documotion Research transaction
Scale indicators6 records
Recent moves8 records
Expansion highlights6 records
Tower Arch Capital competitors and assessment
Company assessmentDirect peers
- Trinity Hunt Partners: Lower middle market growth-oriented PE firm focused on business services and industrial companies with similar EBITDA range and founder-friendly positioning, making it a closely comparable strategy peer.
- Sorenson Capital Partners: Salt Lake City-based lower middle market PE firm with overlapping investment size, sector focus, and Utah network. Multiple Tower Arch partners (Rhett Neuenschwander, Ryan Stratton) previously worked at Sorenson, making it a direct comparable on strategy and talent pipeline.
- Peterson Partners: Utah-based lower middle market PE and venture firm investing across the Mountain West in similar size and verticals to Tower Arch. The two firms share geography, founder-friendly orientation, and a focus on family/founder-owned businesses.
- Huntsman Gay Global Capital: Lower middle market PE firm (Salt Lake City roots) where Tower Arch co-founders Dave Parkin, Ryan Stratton, and Rhett Neuenschwander previously served as Partners/Principals. Highly comparable on investment size, founder-led focus, and sector mix.
- Halifax Group: Lower middle market PE firm making control investments in founder/family-owned businesses. David Calder rejoined Tower Arch from The Halifax Group, indicating direct overlap in investment criteria, deal sourcing, and operating partner model.
- CVF Capital Partners: Lower middle market PE firm investing in growth-oriented industrial and business services companies. Jim Allred (now Tower Arch Principal) came from CVF, evidencing shared thesis and target company profile in similar check sizes.
- Gauge Capital: Dallas-based lower middle market PE firm focused on founder/family-owned businesses with EBITDA in a similar range to Tower Arch. Dru Turley (Tower Arch Associate) previously worked at Gauge, indicating comparable deal sourcing and value-creation playbooks.
- New State Capital Partners: Lower middle market PE firm targeting founder/family-owned industrial and business services companies. Madi Sykes (Tower Arch VP of Business Development) previously worked at New State, evidencing directly comparable strategy and firm culture.
- Huron Capital: Detroit-based lower middle market PE firm executing control buyouts and add-on acquisitions across industrials and business services — a long-standing comparable in size, sector focus, and buy-and-build approach.
- CIVC Partners: Chicago-based lower middle market PE firm focused on business services and industrial sectors with similar check sizes and founder-friendly orientation, serving as a relevant comparable for Tower Arch's strategy and fund economics.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat4 records
Key risks6 records
Key highlights7 records
Customer concentration
Tower Arch Capital social profiles
Digital presenceTower Arch Capital financial estimates
Financial estimateRevenue estimate
Valuation estimate
Tower Arch Capital leadership team
Management profileNumber of profiles
Profiles14 records
Tower Arch Capital funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Tower Arch Capital M&A and investment
M&A and investmentM&A7 records
Investments5 records
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Tower Arch Capital
What does Tower Arch Capital do?
Tower Arch Capital is a lower-middle market private equity firm that makes control investments alongside management teams in family and founder-owned businesses. The firm invests $30M-$75M per platform in companies with EBITDA of $5M-$30M and revenue of $20M-$150M, providing capital, operational support, strategic planning, and add-on acquisition assistance across business services, industrial services, infrastructure services, specialty manufacturing, technology and telecom, energy services, and consumer products.
Is Tower Arch Capital a public or private company?
Tower Arch Capital is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was Tower Arch Capital founded?
Tower Arch Capital was founded in 2013. It employs 11 to 50 people.
Where is Tower Arch Capital based?
Tower Arch Capital is headquartered in Draper, United States, in the North America region.
How does Tower Arch Capital make money?
Two revenue lines are on record. Management Fees are the primary driver. The others are carried Interest.
Who are Tower Arch Capital's main competitors?
Direct peers on record are Trinity Hunt Partners, Sorenson Capital Partners, Peterson Partners, Huntsman Gay Global Capital, Halifax Group, CVF Capital Partners, Gauge Capital, New State Capital Partners, Huron Capital and CIVC Partners.
Does Tower Arch Capital have an API?
No public API is recorded for Tower Arch Capital.
What industry is Tower Arch Capital in?
Tower Arch Capital's product category is Private Equity. Its primary akta.pro industry code is FSANALAG, Micro-PE / Lower Middle Market ETA Funds. Its NAICS code is 52394 and its SIC code is 6282.