ArchStar Capital, proudly announced its official launch in February 2023 and has experienced significant interest due to its unique value proposition and investment philosophy. With a dedicated focus on the lower middle market, ArchStar aims to drive transformation and value creation by providing strategic capital and operational expertise to unlock unprecedented growth potential of promising businesses. Drawing upon their extensive industry knowledge, firsthand operational experience, and deep networks and resources, the ArchStar team is committed to delivering superior results and generating meaningful impact through long-term partnerships.
Think like an owner. Members of ArchStar’s senior management team include Peter Villhard, Jacob Sturdy, Tom Mingo, and Scott Moore, who have amassed extensive private equity subject matter expertise from distinguished firms like Thompson Street, Cequel III, and Mingo Holdings. Mingo and Moore also bring insightful experience as former owner-operators and CEO’s who successfully grew and sold their businesses to private equity: Vaddio and Nevco, respectively. They empathetically understand an owner’s worries and concerns and ease these anxieties by bringing thought leadership, broad networks, and best-in-class resources, to the table.
“Our experiences provide us with a deep understanding of the challenges and opportunities faced by entrepreneurs, allowing us to be effective partners in their growth journeys. This invaluable perspective enhances our investment decisions benefitting the businesses we partner with,” says Scott Moore, former CEO of Nevco and Founding Partner at ArchStar.
Skin in the game. While traditional PE firms require minimal personal investment to the fund by the general partners, ArchStar takes a much different approach: its four founding partners have committed significant amounts of their own capital behind the firm’s strategy, fostering a culture of teamwork, accountability, and partnership among owners, the management team, and firm partners. This unique combination of firsthand owner-operator experience and personal investment has caught the attention of prominent investment banks, wealth advisors, family-run offices, and middle-market intermediaries.
High-growth, lower middle market investment criteria. ArchStar’s investment philosophy aligns with the team’s deep domain knowledge and expertise across manufacturing and supply chain, sales and marketing, and strategic business growth. The strategy will leverage the principals’ experience investing in lower middle market founder- and family-owned businesses, targeting companies with $3-$10 million in EBITDA and $10+ million in revenue primarily throughout the midwestern United States. ArchStar is actively evaluating new investments and welcomes any investment opportunities that fit its criteria.
Patient capital, growth oriented. Historically, private equity firms have maintained holding periods of 3 to 7 years, leaving money on the table for owners and investors. ArchStar’s deep subject matter expertise in buying, transforming, and selling companies challenges this traditional philosophy and embraces flexible holding periods of its portfolio companies. While most PE firms track success using an IRR calculation, the founders’ experience argues that prioritizing longer-term MOIC (multiple of invested capital) is the best metric to measure investment success.
“Our experience and industry data tells us that by partnering with companies to strategize on an intentional exit plan, owners and investors realize the full potential of their capital resulting in stronger company performance, higher valuations, and more lucrative selling opportunities,” says Peter Villhard, Founding Partner at ArchStar.
By combining capital infusion with operational expertise, ArchStar aims to foster innovation and drive unprecedented growth within its portfolio companies, creating long-term value for all stakeholders.
