Lower middle market private equity firm
Tonka Bay Equity Partners
- HeadquartersMinnetonka, MN S1
- Founded1998 S2
- Websitetonkabayequity.com
- Last verifiedOctober 26, 2026
At a glance
| Latest fund | Tonka Bay Fund IV, $200M (Aug 2020) S6 |
|---|---|
| EBITDA range | $3M+ S2 |
| Revenue range | $10M+ S2 |
| Deal types | Platform, Add-on, Growth S2 |
| Geography | United States S2 |
| Sectors | Industrial & Manufacturing, Distribution, IT Services & MSP |
What Tonka Bay Equity Partners buys
Tonka Bay Equity Partners is a Minnetonka, Minnesota firm that has invested in lower middle market companies since 1998. It works in three areas: value-added distribution, highly engineered manufacturing and business services, which for Tonka Bay currently includes managed IT, receivables management and event production. Its stated floor is more than $3 million of EBITDA, and the industry searches it runs target U.S. companies with at least $10 million of revenue. It does buyouts, recapitalizations, partial liquidity for shareholders and growth deals, and it avoids startups, turnarounds, financial institutions, real estate and restaurants.
The firm has raised $560 million across four funds, most recently a $200 million fourth fund closed in 2020, and counts 46 partner companies and more than 90 add-ons. Much of its recent work is add-ons: Corporate Technologies has bought five IT providers since Tonka Bay invested in 2023. Over 80% of its deals were a company's first institutional capital. Smaller companies often meet Tonka Bay as add-ons to a platform it lists as seeking acquisitions.
Recent deals
Announced in the 24 months before October 26, 2026.
| Date | Company | Type | Sector | Source |
|---|---|---|---|---|
| Jul 2026 | Jones BearingAlabama maker of mounted roller bearings and power transmission parts, added to Standard Locknut | Add-on | Industrial & Manufacturing | Source |
| Apr 2026 | RPM TechnologiesIndianapolis IT services provider with a life sciences focus; Corporate Technologies' fifth add-on, bringing it to 21 locations | Add-on | IT Services & MSP | Source |
| Feb 2026 | CAMP DigitalEdina, Minnesota digital marketing platform for HVAC, plumbing and electrical contractors; the founder stays on as CEO | Platform | Source | |
| Dec 2025 | CCSIMiami virtual desktop and managed IT provider, Corporate Technologies' fourth add-on and its entry into the Southeast | Add-on | IT Services & MSP | Source |
| Oct 2025 | VARO/BYLTwo West Chester, Pennsylvania receivables outsourcing firms added to Professional Credit | Add-on | Source | |
| Sep 2025 | CenetricKansas City managed IT provider for small and midsize businesses, taking Corporate Technologies to 18 locations | Add-on | IT Services & MSP | Source |
| Aug 2025 | Elevate Medical SolutionsMadison, Wisconsin medical coding and audit firm added to Professional Credit | Add-on | Source | |
| May 2025 | National CoatingsSupplier of industrial and metal packaging coatings, joined Fenix Specialty Coatings | Add-on | Industrial & Manufacturing | Source |
| Jan 2025 | LightMartFounder-owned Lake Zurich, Illinois distributor of light poles and outdoor commercial lighting | Platform | Distribution | Source |
Portfolio by sector
From the firm's portfolio page S3.
Business Services
- CAMP Digital
- Corporate Technologies
- Image AV
- Professional Credit
Highly Engineered Manufacturing
- E-Cloth
- Fenix Group
- Standard Locknut
Value-Added Distribution
- LightMart
Greymont’s take
How Tonka Bay Equity Partners fits a seller
Tonka Bay suits owners of manufacturing, distribution, managed IT or business services companies with $3 million or more of EBITDA, especially those who have never taken outside capital. The firm has done that kind of first-time deal for more than 25 years, and in recent deals the founders stayed involved: Tonka Bay partnered with LightMart's founding couple in January 2025, and CAMP Digital's founder kept the CEO role in February 2026.
Owners of smaller IT providers, receivables firms, coatings makers or bearing makers may fit as add-ons to Corporate Technologies, Professional, Fenix or Standard Locknut. Because the most recent fund Tonka Bay has announced closed in 2020, an owner should ask which fund would pay for the deal and how long the firm expects to hold the company. In a recapitalization, ask how large a stake the owner keeps and what say they have over a later sale.
Questions owners ask
What size company does Tonka Bay Equity Partners look for?
Its stated floor is more than $3 million of EBITDA, and its proactive industry searches target U.S. companies with at least $10 million of revenue. Its 2020 fund announcement described typical companies with $20 million to $50 million of revenue.
Does Tonka Bay invest in IT managed service providers?
Yes. Corporate Technologies, a Minneapolis managed IT provider, is a current partner company. It has made five acquisitions since Tonka Bay invested in 2023, including Cenetric, CCSI and RPM Technologies, and now has 21 locations.
What does Tonka Bay not invest in?
It generally passes on startups and turnarounds, and it does not invest in financial institutions, real estate companies or restaurants. It prefers established, profitable companies focused on a particular niche.
Sources
- S1Tonka Bay Equity Partners home page Accessed October 26, 2026
- S2Tonka Bay: Approach Accessed October 26, 2026
- S3Tonka Bay: Partner Companies Accessed October 26, 2026
- S4Tonka Bay: History Accessed October 26, 2026
- S5Tonka Bay: News Accessed October 26, 2026
- S6Tonka Bay Equity Partners Announces $200 Million Fund IV (August 3, 2020) Accessed October 26, 2026
- S7Tonka Bay Invests in CAMP Digital (February 26, 2026) Accessed October 26, 2026
- S8Corporate Technologies Acquires RPM (April 30, 2026) Accessed October 26, 2026
- S9Tonka Bay Invests in LightMart (January 7, 2025) 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 Tonka Bay Equity Partners. Figures are as reported on the dates shown and may have changed. Request a correction