Lower middle market private equity firm

Sky Island Capital

At a glance

Latest fundSky Island Capital II, $300M (Jan 2025) S5
EBITDA range$4M to $20M S6
Check size$10M to $60M S6
Deal typesPlatform, Add-on S2
GeographyUnited States, Canada S2
SectorsIndustrial & Manufacturing, Consumer & Food

What Sky Island Capital buys

Sky Island Capital is a Dallas private equity firm, started in 2018, that buys only manufacturing companies. It looks for makers based in the US or Canada that are still owned and run by founders or families and have never had an institutional investor. It takes majority control and asks sellers to keep a stake through a rollover. Its 2026 fact sheet lists $4 million to $20 million of EBITDA and equity checks of $10 million to $60 million.

The firm is investing from Sky Island Capital II, a $300 million fund that closed in January 2025 above its target. Bulk Conveyors, bought in June 2026, was the fifth platform from that fund. Each platform then buys add-ons, and Sky Island has also bought a business out of a larger corporation, Scranton Products from AZEK. Its size and ownership tests do not apply to add-ons or carve-outs, so a smaller manufacturer is most likely to meet Sky Island as an add-on to a company it already owns, such as Polished Metals, Valley Forge Flag or Scranton Products.

Recent deals

Announced in the 24 months before October 27, 2026.

DateCompanyTypeSectorSource
Jun 2026Bulk ConveyorsWichita maker of conveyors and bucket elevators; fifth platform from Fund II, with the leadership team and brand staying in placePlatformIndustrial & ManufacturingSource
Feb 2026US Flag Division of Olympus GroupAssets of a long-running American flag maker added to Valley Forge FlagAdd-onConsumer & FoodSource
Jan 2026SkyMark CompaniesMaker of aircraft refueling trucks and specialty tanks sold to ATL PartnersExitIndustrial & ManufacturingSource
Jan 2026Dynasty MetalsNew Jersey metal polisher added to Polished Metals, its third add-onAdd-onIndustrial & ManufacturingSource
Dec 2025USA IndustriesPipe testing and isolation products maker sold to Levine Leichtman Capital PartnersExitIndustrial & ManufacturingSource
Dec 2025Metpar Corp.Tennessee bathroom partition maker's assets added to Scranton ProductsAdd-onIndustrial & ManufacturingSource
Oct 2025NaturepedicMajority stake in an Ohio organic mattress maker, alongside the founding Cik familyPlatformConsumer & FoodSource
Jun 2025Scranton ProductsPlastic partition and locker maker bought from The AZEK Company; leadership team staysPlatformIndustrial & ManufacturingSource
Apr 2025Paper Tubes and Sales Co.Family-owned Dallas maker of paper tubes and composite cans added to Pacific Paper TubeAdd-onIndustrial & ManufacturingSource
Mar 2025Becker & AssociatesIllinois supplier of aviation and ground fueling parts added to SkyMarkAdd-onIndustrial & ManufacturingSource
Jan 2025Sky Island Capital IISecond fund closed at $300 million, above its $225 million targetFund closeSource

Portfolio by sector

From the firm's portfolio page S4.

Current investments

  • Material Sciences
  • Polished Metals
  • Valley Forge Flag Company
  • Kaufhold's Kurds
  • Pacific Paper Tube
  • Farmdale Creamery
  • Scranton Products
  • Naturepedic
  • Bulk Conveyors

Past investments: USA Industries, SkyMark Refuelers

Greymont’s take

How Sky Island Capital fits a seller

Sky Island suits owners of a manufacturing business who want to sell a majority stake but keep a real piece of the company and stay involved. The firm says it strongly prefers to back the team already in place, and its recent deals match that: Bulk Conveyors kept its leaders and brand in Wichita, and Sky Island invested alongside the founding families at Naturepedic and Farmdale Creamery. Expect to roll over part of your equity and to follow an operating plan built around lean production, sales and add-ons.

Sky Island sold two companies within about a month, USA Industries and SkyMark, both to other private equity firms. An owner who rolls equity should ask how long the firm expects to hold the business and what a later sale would mean for that stake. An owner below the size range should ask whether the company fits as an add-on to a current holding.

Questions owners ask

What size company does Sky Island Capital look for?

Its 2026 fact sheet lists manufacturers with $4 million to $20 million of EBITDA and equity checks of $10 million to $60 million. Its strategy page gives a narrower $5 million to $15 million EBITDA range, and neither test applies to add-ons or carve-outs.

Does Sky Island invest in companies that are not manufacturers?

No. The firm says it partners only with manufacturing companies, but across many end markets, from building products, metals and packaging to food and consumer goods such as flags and organic mattresses.

Does the owner stay involved after selling to Sky Island?

Usually. Sky Island takes majority control but wants sellers to roll over equity, and it says it strongly prefers to keep the existing management team. In the June 2026 Bulk Conveyors deal, the company kept its leadership, brand and Wichita headquarters.

Who has Sky Island sold its companies to?

Its two most recent exits went to other private equity firms: USA Industries to Levine Leichtman Capital Partners in December 2025 and SkyMark Companies to ATL Partners in January 2026.

Sources

  1. S1Sky Island Capital home page Accessed October 27, 2026
  2. S2Sky Island Capital: Strategy and platform criteria Accessed October 27, 2026
  3. S3Sky Island Capital: About Accessed October 27, 2026
  4. S4Sky Island Capital: Portfolio Accessed October 27, 2026
  5. S5Sky Island Capital Closes Second Fund Above Target at $300 Million (January 16, 2025) Accessed October 27, 2026
  6. S6Sky Island Capital 2026 fact sheet Accessed October 27, 2026
  7. S7Sky Island Capital Partners With Bulk Conveyors, Inc. (June 8, 2026) Accessed October 27, 2026
  8. S8Sky Island Capital Acquires Naturepedic (October 6, 2025) Accessed October 27, 2026
  9. S9Sky Island Capital: News Accessed October 27, 2026

Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with Sky Island Capital. Figures are as reported on the dates shown and may have changed. Request a correction

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