Minneapolis has emerged as a thriving hub for private equity firms, with powerhouses like Norwest Equity Partners, Tonka Bay Equity Partners, and ShoreView Industries leading the charge. These firms leverage Minnesota’s robust business ecosystem, strong talent pool, and strategic Midwest location to drive investment success across diverse sectors. The city’s collaborative environment and entrepreneurial spirit make it an ideal breeding ground for private equity innovation. Interested in joining a community of forward-thinking investment professionals? Explore more at alexejpikovsky.com/community.
Norwest Equity Partners
Investment Style: Norwest Equity Partners focuses on middle-market buyouts and growth equity investments, emphasizing sectors such as consumer, industrials, finance and healthcare. They leverage their operational expertise to drive growth and create long-term value in their portfolio companies.
Portfolio Companies: NEP’s portfolio includes Bowmar Nutrition (health supplements), Stanton Carpet (luxury carpet), and Eyecare Partners (optometry and ophthalmology services).
Founding Date: 1961
Number of Investment Professionals: Over 20
Assets Under Management: Approximately $7 billion
Key Investment Professionals:
- Tim DeVries, Managing Partner: DeVries leads the firm’s strategic direction and investment decision-making processes, providing oversight on all significant investments.
- David Alpern, Partner: Alpern focuses on investments in the healthcare sector and has been instrumental in growing the firm’s healthcare portfolio.
- John Hockaday, Partner: Hockaday specializes in industrials and consumer sectors, leveraging his expertise to enhance operational efficiencies.
Recent Exits:
- GoHealth to Centerbridge Partners and Silver Lake: Demonstrated NEP’s ability to enhance value through improved operational structure and market expansion.
- Woodbury Financial Services to Advisor Group.
Recent Investments:
- Investment in Club Champion, a leading custom golf club fitter and builder.
- Investment in The Mather Group, a wealth management firm.
Office Locations:
- Minneapolis (Headquarters): 80 South 8th Street, Suite 3600, Minneapolis, MN 55402
Website: www.nep.com
Quote: “Our success is built on the enduring partnerships we establish with our portfolio companies. We focus on creating value through strategic growth and operational improvements.” – Tim DeVries, Managing Partner
Tonka Bay Equity Partners
Investment Style: Tonka Bay Equity Partners specializes in investing in lower middle-market companies, focusing on growth-oriented businesses in the manufacturing, value-added distribution, and business services sectors. They work closely with management teams to enhance operational performance and drive growth.
Portfolio Companies: Tonka Bay’s portfolio includes Meier Tool & Engineering (precision components), King Automation (automation solutions), and Stone Panels International (innovative building materials).
Founding Date: 1998
Number of Investment Professionals: Approximately 10
Assets Under Management: Over $550 million
Key Investment Professionals:
- Travis Kelley, Partner: Kelley leads investment strategies and portfolio management, focusing on the manufacturing sector.
- Jack Helms, Partner: Helms provides strategic oversight and operational expertise in business services investments.
Recent Exits:
- Sale of Molded Dimensions to ShoreView Industries.
- Exit from Checkpoint Surgical to Windjammer Capital Investors.
Recent Investments:
- Investment in Spika Design & Manufacturing, experts in custom work platforms and fall protection.
- Investment in AAVID Thermalloy, a thermal management solutions provider.
Office Locations:
- Minneapolis (Headquarters): 601 Carlson Parkway, Suite 225, Minnetonka, MN 55305
Website: www.tonkabayequity.com
Quote: “We partner with exceptional management teams to drive value through strategic growth initiatives and operational excellence.” – Travis Kelley, Partner
ShoreView Industries
Investment Style: ShoreView Industries focuses on lower middle-market investments and partner with companies across a variety of industries including business services, manufacturing, and distribution. They emphasize operational improvements and strategic growth to build value.
Portfolio Companies: ShoreView Industries’ portfolio includes companies like Questco (HR services), VanDeMark Chemical (chemical manufacturing), and Romance Writers of America (membership association).
Founding Date: 2002
Number of Investment Professionals: Over 15
Assets Under Management: Approximately $1.3 billion
Key Investment Professionals:
- David L. Stott, Partner: Stott drives investment strategy and focuses on enhancing value through operational improvements.
- Scott S. Perper, Partner: Perper specializes in manufacturing and business services sectors, leveraging his expertise to optimize portfolio performance.
Recent Exits:
- Molded Dimensions sold to Tonka Bay Equity Partners.
- Questco acquired by Oasis Outsourcing.
Recent Investments:
- Investment in Celerity IT, provider of digital transformation services.
- Acquisition of Safe Fleet, a leader in fleet safety solutions.
Office Locations:
- Minneapolis: 150 South 5th Street, Suite 2650, Minneapolis, MN 55402
Website: www.shoreviewindustries.com
Quote: “We take pride in partnering with strong management teams to unlock a company’s full potential, ensuring strategic growth and operational excellence.” – David L. Stott, Partner
Yellow Wood Partners
Investment Style: Yellow Wood Partners specializes in consumer-focused private equity investments, targeting middle-market companies. They emphasize creating value through strategic brand management, operational enhancements, and market expansion.
Portfolio Companies: Yellow Wood’s portfolio features brands like Scholl’s Wellness Company, Freeman Beauty, and PDC Brands.
Founding Date: 2011
Number of Investment Professionals: Approximately 15
Assets Under Management: Approximately $1 billion
Key Investment Professionals:
- Dana Schmaltz, Partner: Schmaltz oversees consumer investments, focusing on brand growth and market positioning.
- Peter Mann, Partner: Mann drives strategic initiatives and operational improvements across the portfolio.
Recent Exits:
- Sale of Parfums de Coeur to Catterton Partners.
- Exit from Insight Pharmaceuticals to Prestige Brands Holdings.
Recent Investments:
- Acquisition of Scholl’s Wellness Company from Reckitt Benckiser.
- Investment in Freeman Beauty, a leading beauty brand.
Office Locations:
- Boston (Headquarters): Though headquartered in Boston, Yellow Wood Partners has developed significant investment activities and relationships in Minneapolis.
Website: www.yellowwoodpartners.com
Quote: “Our focus is on consumer-centric brands where we can drive growth through innovation, operational improvements, and strategic brand positioning.” – Dana Schmaltz, Partner
Castlelake
Investment Style: Castlelake specializes in complex credit, asset-based, and special situations investments. They focus on creating value through unique opportunities in distressed, dislocated, or otherwise complex investments across various sectors.
Portfolio Companies: Castlelake’s investments include a diverse array of assets such as aircraft leasing, real estate, and special credit opportunities.
Founding Date: 2005
Number of Investment Professionals: Over 50
Assets Under Management: Over $15 billion
Key Investment Professionals:
- Rory O’Neill, Founder and CEO: O’Neill leads the firm’s strategic vision and oversees all investment activities.
- Evan Carruthers, Managing Partner: Carruthers focuses on credit and special situations, leveraging his expertise to drive unique investment opportunities.
Recent Exits:
- Exit from certain aircraft leasing portfolios.
- Sale of real estate assets to strategic buyers.
Recent Investments:
- Investment in a distressed real estate portfolio.
- Acquisition of aircraft leasing assets from major airlines.
Office Locations:
- Minneapolis (Headquarters): 4600 Wells Fargo Center, 90 South Seventh Street, Minneapolis, MN 55402
Website: www.castlelake.com
Quote: “We leverage our deep expertise and nimble approach to uncover and capitalize on unique investment opportunities globally.” – Rory O’Neill, Founder and CEO
Conclusion
Minneapolis continues to be a vibrant hub for private equity firms, with a dynamic landscape that reflects the region’s economic strength. The local ecosystem demonstrates remarkable adaptability and strategic investment potential. As the market evolves, these firms will undoubtedly play a crucial role in shaping regional economic growth and supporting transformative business transitions.
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