Turning Rock Partners

Turning Rock Partners

Turning Rock Partners was founded in New York in 2017 by Maggie Arvedlund, who previously held senior roles at Fortress Investment Group and Drawbridge Special Opportunities. The firm emerged from a thesis that the lower middle market contained a structural financing gap — profitable companies too small for broadly syndicated debt but requiring capital beyond what regional banks typically provide. The firm deploys capital through structured debt and preferred equity investments, concentrating on North American businesses with $5 million to $25 million in EBITDA. Target sectors span business services, industrials, healthcare, and consumer, with dual emphasis on direct lending to growing companies and acquiring non-controlling stakes in established operators seeking liquidity. The portfolio spans at least three asset classes — senior secured loans, mezzanine debt, and structured equity — across a geographic footprint that includes the United States and Canada. Arvedlund runs the investment committee alongside a lean internal team in New York. The firm has no disclosed AUM but positions its vehicle as an open-ended private fund structure rather than a series of blind pools, giving the GP discretion to hold investments longer than typical closed-end fund lifecycles. May 2024: The firm reported deploying over $1 billion in cumulative capital since inception (per Mergers & Acquisitions, May 2024). The structural differentiator lies in duration flexibility. By avoiding a traditional 10-year fund lifecycle, Turning Rock can underwrite minority structured investments with 3- to 7-year hold periods without the forced exit pressure that shapes most competitor behavior in this segment. This aligns the firm with founder-owners who seek partner capital but do not want to sell control.