Investment Summary

Stone Arch Capital, Capitala Group and Brookside Capital Partners Invest In Stueve Construction

On October 16, 2024, private equity firm Stone Arch Capital, asset manager Capitala Group and mezzanine finance firm Brookside Capital Partners invested in construction company Stueve Construction

Investment Highlights
  • This is Stone Arch Capital’s 1st, Capitala Group’s 1st and Brookside Capital Partners’ 2nd transaction in the Construction sector.
  • This is Stone Arch Capital’s 11th, Capitala Group’s 97th and Brookside Capital Partners’ 64th transaction in the United States.
  • This is Stone Arch Capital’s 2nd, Capitala Group’s 1st and Brookside Capital Partners’ 1st transaction in Iowa.

Investment Summary

Date 2024-10-16
Target Stueve Construction
Sector Construction
Investor(s) Stone Arch Capital
Capitala Group
Brookside Capital Partners
Deal Type Growth Capital

Target

Stueve Construction

Algona, Iowa, United States
Stueve Construction is a design, engineering, and construction firm focused primarily on the construction of dry fertilizer storage facilities. Stueve Construction was founded in 1958 and is based in Algona, Iowa.

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Investor(S) 3

Investor

Stone Arch Capital

Minneapolis, Minnesota, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2003
PE ASSETS 259M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Stone Arch Capital is a private equity firm focused on lower middle market companies operating in the Midwest US. The firm pursues established companies valued from $25 to $125 million with EBITDA between $5 and $30 million. Target companies generally have 'protectable market positions', strong management in place, diverse customer bases, and 'predictable capital intensity'. Stone Arch will consider opportunities in a wide variety of manufacturing and service industries, excluding real estate, technology, and commodity industries. Typical equity investment range between $10 and $25 million. Stone Arch Capital was formed in 2003 and is based in Minneapolis, Minnesota.


DEAL STATS #
Overall 12 of 12
Sector (Construction) 1 of 1
Type (Growth Capital) 2 of 2
State (Iowa) 2 of 2
Country (United States) 11 of 11
Year (2024) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2023-10-01 EIMCo

Farley, Iowa, United States

EIMCo is a manufacturer of metal components and assembled products predominantly used in agricultural, industrial, housing, heavy construction, and food processing applications. EIMCo was founded in 1992 and is based in Farley, Iowa.

Sell -
Investor

Capitala Group

Charlotte, North Carolina, United States

Investor Investor Investor Investor Investor


Category Asset Manager
Founded 1998
PE ASSETS 2.2B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Capitala Group is an asset manager that provides equity and mezzanine capital to mid-sized companies valued up to $250 million. Funds are generally used to support growth needs, add-on acquisitions, management/leveraged buyouts, and recapitalizations. Capitatala will invest across the US, but generally targets opportunities located in the Southeast. Industry preferences include building products, business services, consumer/reteail, general industrial, healthcare, and technology. Prospective companies typically have revenues greater than $10 million and EBITDA of at least $3 million. Capitala was formed in 1998 and is headquartered in Charlotte, North Carolina.


DEAL STATS #
Overall 98 of 98
Sector (Construction) 1 of 1
Type (Growth Capital) 28 of 28
State (Iowa) 1 of 1
Country (United States) 97 of 97
Year (2024) 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2024-09-11 Proactive Dealer Solutions

Huntersville, North Carolina, United States

Proactive Dealer Solutions is a multi-faceted service provider for the auto dealership and more broadly the motorized vehicle sector focused on lead management and conversion. Proactive’s services assist auto dealerships with all aspects of their sales organization by providing a full suite of integrated solutions, including hiring/training talent, call monitoring services, performance tracking, and conversion. Proactive Dealer Solutions is based in Huntersville, North Carolina.

Sell -
Investor
DESCRIPTION

Brookside Capital Partners is an investment management firm focused on stable lower-middle market companies in the US. The Firm typically commits $5 to $30 million per transaction to support buyouts, leveraged recapitalizations, strategic acquisitions and growth. Potential businesses generally have revenue greater than $15 million, and EBITDA of at least $4 million. Industries of interest include business services, consumer, distribution, healthcare, manufacturing, and transportation and logistics. Brookside Capital Partners was established in 2001 and is based in Stamford, Connecticut.


DEAL STATS #
Overall 64 of 65
Sector (Construction) 2 of 2
Type (Growth Capital) 16 of 16
State (Iowa) 1 of 1
Country (United States) 64 of 65
Year (2024) 3 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2024-09-11 Military Fasteners

Melbourne, Florida, United States

Military Fasteners is a B2B eCommerce distributor of mil-spec fasteners primarily to customers in the aerospace and defense industry, with a focus on maintenance, repair, and overhaul, among other sectors. Military Fasteners is based in Melbourne, Florida.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2024-10-23 Hoffman Engineering

Stamford, Connecticut, United States

Hoffman Engineering provides proprietary situational awareness solutions for mission-critical aerospace and defense applications. Hoffman Engineering was founded in 1955 and is based in Stamford, Connecticut.

Buy -