Firm: Tower Arch Capital
Fund: Tower Arch Partners I LP
Target: Expected to seek at least $150 million to $200 million
Placement Agent: Shannon Advisors
The firm, which filed a Form D last May for the fund, Tower Arch Partners I LP, has a significant sum lined up from friends and family, including a cornerstone investor, according to our source. It has now expanded the fundraise to include institutional investors, said our source, who thought the firm would try to raise at least $150 million to $200 million.
The partners of Tower Arch Capital include four former executives at HGGC, a Palo Alto-based buyout shop formerly known as Huntsman Gay Global Capital: Rhett Neuenschwander, formerly a partner at HGGC and before that a principal at Sorenson Capital Partners; David Parkin, formerly a partner at HGGC; Ryan Stratton, formerly a principal at HGGC; and David Topham, formerly a principal at HGGC. Controller Thomas Feveryear previously had the same position at private equity shop Peterson Partners.
Tower Arch Capital seeks to make control investments in entrepreneur-owned or family-owned companies generating EBITDA of $3 million to $15 million on revenue of $10 million to $100 million, according to its website. The firm invests in recapitalizations, buyouts and corporate carve-outs across the United States, and is believed to have a particular taste for industrial companies.
Jon Huntsman Sr., chairman of chemicals company Huntsman Corp and of HGGC, provides a testimonial on the Tower Arch Capital website. Buyouts earlier reported that he is the father-in-law of Parkin.
Buyouts was unable to reach an executive at the firm for comment by press-time.