Tonka Bay Announces New $150 Million Fund

Minnetonka, Minnesota РTonka Bay Equity Partners has announced the closing of a new $150 million investment fund. Based in Minnetonka, Minnesota, Tonka Bay is a private equity firm that acquires and invests in lower middle market businesses in three broad sectors Рhighly engineered manufacturing, value-added distribution and business services.

Tonka Bay focuses on private companies with revenues generally between $20 and $50 million. They work closely with management teams to execute growth strategies and implement operating improvements. The firm collaborates with seasoned executives called operating partners who help accelerate the value creation process by acting as board members, advisors, mentors and consultants.

This latest fund is Tonka Bay’s third in a series of investment funds formed since the firm’s founding in 1998. The General Partners of the fund are Cary Musech, Peter Kooman, Steve Soderling, Molly Simmons and Shane Slominski. The fund is licensed as a Small Business Investment Company (SBIC).

Tonka Bay raised over $60 million of private capital from institutional and high net worth investors and plans to leverage the fund to $150 million through the SBIC program. The size of the fund exceeded Tonka Bay’s initial target of $125 million. Institutional investors in the fund include pension plans, foundations, trusts, commercial banks, college and university endowments, and family offices.

“We are very pleased with the response from our investors, especially in this challenging environment,” said Cary Musech, Managing Principal of Tonka Bay. “Our success in fundraising has been due to the strong performance of our previous funds, and investors seeking alternatives to the public markets.”

About Tonka Bay Equity Partners

Based in Minnetonka, Minnesota, Tonka Bay Equity Partners is a private equity firm that acquires and invests in growth-oriented businesses in the highly-engineered manufacturing, business services and value-added distribution sectors. For more information, call (952) 345-2031 or visit

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