Sky Island Capital

Sky Island Capital is a Dallas-based private equity firm that focuses exclusively on partnering with privately held manufacturing companies in North America. Founded in 2018, the firm aims to collaborate with entrepreneurs and family business owners to drive growth and value creation. Sky Island Capital employs a proprietary operational playbook to support senior management in implementing strategic initiatives and operational improvements post-acquisition.

The firm's investment strategy centers on acquiring companies with EBITDA between $5 million and $15 million, making equity investments ranging from $10 million to $50 million. Sky Island Capital has a history of executing transactions with complex dynamics, including corporate carve-outs, public-to-private deals, family-owned businesses, lender-controlled businesses, management buyouts, and other special situations. The firm has partnered with the family owners of 17 manufacturing companies across various end markets, including aerospace & defense, building products, consumer products, food & beverage, industrial products, metals, and packaging.

Sky Island Capital's approach emphasizes partnership and interest alignment, focusing on supporting management teams in driving transformational change through growth initiatives, operational improvements, and strategic acquisitions. The firm is committed to building world-class manufacturing companies and has a track record of successful investments, including the acquisition of Material Sciences Corporation in 2019 and USA Industries in 2022. In 2025, Sky Island Capital closed its second fund, Sky Island Capital II LP, with $300 million in capital commitments, exceeding its original $225 million target.