Tonka Bay Equity Partners Announces $200 Million Fund IV

MINNETONKA, MN (August 3, 2020) Tonka Bay Equity Partners has announced the closing of its fourth fund, a $200 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 – highly-engineered manufacturing, value-added distribution, and business services.

Tonka Bay focuses on private companies with revenues generally between $20 and $50 million and EBITDA between $2 and $8 million. They work closely with management teams to execute growth strategies and build bigger, better businesses. 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 fourth in a series of investment funds formed since the firm’s founding in 1998. The General Partners of the fund are Steve Soderling, Shane Slominski, Cary Musech, Peter Kooman and Kam Kielhorn. Tonka Bay has raised over $550 million of capital since 1998, invested in 37 partner companies and completed more than 70 add-on acquisitions.

“We are thrilled with the response from our investors and fortunate to exceed our initial target,” said Steve Soderling, Partner of Tonka Bay. “Our consistent and focused investment strategy is to provide patient, personalized and collaborative capital to entrepreneurial private businesses while generating attractive returns for our investors. We believe Tonka Bay has a unique skillset to effectively grow and develop private companies that have not previously had outside investors.”

About Tonka Bay Equity Partners
Based in Minnetonka, Minnesota, Tonka Bay has been Building Bigger, Better Businesses® for over 25 years. 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) 345-2030 or visit

View 2020 News