Lower middle market private equity firm (independent sponsor)
ArchStar Capital
- HeadquartersMinneapolis, MN S6
- Founded2023 S8
- Websitearchstarcap.com
- Last verifiedOctober 26, 2026
At a glance
| EBITDA range | $3M to $10M S1 |
|---|---|
| Revenue range | $10M+ S1 |
| Deal types | Platform, Add-on S2 |
| Sectors | Industrial & Manufacturing, Distribution |
What ArchStar Capital buys
ArchStar Capital is a Midwest private equity firm launched in 2023 by four partners, two of whom built companies and sold them to private equity. It has offices in Minneapolis/St. Paul and St. Louis. ArchStar buys control of solid lower middle market companies through buyouts and control recapitalizations, then holds them much longer than a typical fund, often 8 to 12 years and sometimes up to 15. It works as an independent sponsor, raising equity and debt for each deal instead of drawing on one blind pool; Graycliff Partners and Parkway Capital supplied debt and equity for two of its 2024 deals.
Its site targets companies with $3 million to $10 million of EBITDA and at least $10 million of revenue in large, fragmented industries where the business can become a platform. Every holding so far is a manufacturer: Tess Oral Health, Attic Breeze, and Tutela Packaging Group, a maker of rugged protective cases that has grown by adding Deployable Systems and Custom Case Group. A smaller case or container maker could meet ArchStar as a Tutela add-on.
Recent deals
Announced in the 24 months before October 26, 2026.
| Date | Company | Type | Sector | Source |
|---|---|---|---|---|
| Jul 2026 | Custom Case Group (EPS and SCS Cases)Two custom case makers in San Dimas, California and the Chicago area added to Tutela Packaging Group, giving it a national footprint | Add-on | Industrial & Manufacturing | Source |
| Sep 2025 | Deployable Systems, Inc.Virginia maker of rugged molded cases combined with Packaging Strategies to form ArchStar's packaging holding company | Add-on | Industrial & Manufacturing | Source |
Portfolio by sector
From the firm's portfolio page S4.
Current Holdings
- Attic Breeze
- Tess Oral Health
Current Holdings (Tutela Packaging Group)
- Custom Case Group
- Deployable Systems, Inc.
- Packaging Strategies
Greymont’s take
How ArchStar Capital fits a seller
ArchStar fits a founder of a manufacturing or distribution business with $3 million to $10 million of EBITDA who wants a buyer that will not resell the company in four or five years. Its pitch rests on long holds and on partners who have been in the owner's seat; the founder of Attic Breeze and the CEO of Tess Oral Health both cited that background when they sold. It is a young firm with five companies and no exits yet, so the long-hold promise has not been tested.
Because ArchStar raises capital deal by deal, an owner should ask early who is providing the equity and the debt, and how committed that money is, before signing a letter of intent. An owner who plans to roll over equity should also ask how and when ArchStar's investors expect to get their money back during a hold of ten years or more.
Questions owners ask
Where is ArchStar Capital based?
ArchStar says it is based in the Midwest, with one office in Minneapolis/St. Paul and one in St. Louis. Its site does not name either as headquarters; the firm's name pairs the Gateway Arch in St. Louis with Minnesota's North Star.
How long does ArchStar hold its companies?
Longer than most private equity firms. Its About page says it holds companies for 8 to 12 years, and a 2024 article on its site says holds often run 8 to 15 years, with no fixed fund deadline forcing a sale.
What size company does ArchStar look for?
Companies with $3 million to $10 million of EBITDA and at least $10 million of revenue, in large and fragmented industries where the business can serve as a platform for add-on acquisitions.
Does ArchStar have a committed fund?
Its site says it uses the independent sponsor model, raising money for each deal, and lenders Graycliff Partners and Parkway Capital supplied debt and equity for its Tess Oral Health and Attic Breeze deals in 2024. The home page also mentions a 15-year Growth-Option Fund, so owners should ask how their deal would be funded.
Sources
- S1ArchStar Capital home page (criteria and offices) Accessed October 26, 2026
- S2ArchStar Capital: About Accessed October 26, 2026
- S3ArchStar Capital: Our Approach Accessed October 26, 2026
- S4ArchStar Capital: Current Holdings Accessed October 26, 2026
- S5ArchStar Capital: News & Insights Accessed October 26, 2026
- S6ArchStar Capital: Contact Us (Minneapolis/Saint Paul and St. Louis offices) Accessed October 26, 2026
- S7ArchStar Capital: Our Team Accessed October 26, 2026
- S8ArchStar Capital Launches with Vision to Disrupt Middle Market Investments (June 19, 2023) Accessed October 26, 2026
- S9ArchStar Capital Completes Investment in Packaging Strategies (October 25, 2024) Accessed October 26, 2026
- S10ArchStar Capital Completes Investment in Deployable Systems, Inc. (September 17, 2025) Accessed October 26, 2026
- S11Tutela Packaging Group Expands with Acquisition of Custom Case Group (July 27, 2026) Accessed October 26, 2026
- S12ArchStar Capital: The Independent Sponsor Model (October 10, 2024) Accessed October 26, 2026
- S13ArchStar Capital Completes Acquisition of Attic Breeze (June 7, 2024) Accessed October 26, 2026
- S14ArchStar Capital Completes Investment in Tess Oral Health (May 28, 2024) Accessed October 26, 2026
Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with ArchStar Capital. Figures are as reported on the dates shown and may have changed. Request a correction