Company Performance Metrics
John Mandelker: Managing Partner
Arch Equity Partners was formed in 2008 as a private equity firm that concentrates on investments for companies in the lower middle market. Arch was created to bring the professional discipline of a larger private equity firm to the lower middle market, in particular, in companies with revenue between $3-15 million and EBITDA above $500,000. They
will invest up to $2 million in any opportunity but our average is closer to $1 million. While most investment firms seek a horizon of 5-10 years, They believe a good investment is worth keeping and so target a hold period of 12-15 years. Finally, They actively partner with management teams to ensure they have a meaningful ownership position, targeting management team ownership of 15-25%.
While the majority of the opportunities They evaluate are in the manufacturing, distribution and business services markets, They also have an interest in looking at retail-based companies, contractors, healthcare, and other firms representing a wide variety of markets and disciplines. Arch does not invest in real estate ownership companies or higher-order technology companies.
From our initial investments, They have been building value in partnership with the management teams of our portfolio companies through operational improvements, professional management practices, and targeted and sustainable business growth. Our mission is to partner with strong management teams to build better businesses over a longer investment horizon by unlocking the stored potential of each company.
