Garden City Equity, a Charlotte-based holding company focused on long-term partnerships with founder- and family-owned businesses, has raised $255 million to support its next phase of investments.
The firm targets lower middle-market companies across the South and Southwest United States, typically businesses generating up to $25 million in EBITDA. Founded in 2020 by Michael Arrieta — former Global VP and Chief of Staff at DocuSign — Garden City positions itself as an alternative to traditional private equity models, emphasizing long-term ownership, minimal leverage, and employee-centered growth.
A Different Approach to Private Investment
Following DocuSign’s multi-billion-dollar IPO, Arrieta set out to build what he describes as a “long-term home” for businesses rather than a short-term financial vehicle.
“Growing up as the son of Puerto Rican parents working blue collar jobs, I saw first-hand that working hard didn’t necessarily lead to opportunities to thrive,” Arrieta said. “I founded Garden City Equity not only to generate returns for investors, but also to partner with existing leaders who would continue to run their businesses, and to create lasting impact where every portfolio company team member is treated with dignity, respect, and purpose.”
Since its inception, Garden City has backed eight companies employing more than 500 team members.
Unlike traditional buyout firms, Garden City states it focuses on cultural continuity and leadership retention within acquired businesses, supporting founders who want liquidity while preserving operational independence.
Expanding the “People-First” Model
The firm’s philosophy extends beyond compensation and benefits. Garden City reports investing in employee-focused initiatives that include:
- Company chaplain programs centered on well-being
- Financial literacy and language education
- No-interest loans for short-term financial needs
- Therapy and marital counseling support
- Charitable gift matching and operational enhancements
“The average American spends over 90,000 hours at work over a lifetime,” Arrieta added. “We believe providing for team members in the workplace is one of the most powerful ways to impact people and our country.”
Backed by High-Profile, Mission-Aligned Investors
The $255 million raise includes participation from approximately 200 shareholders described as mission-aligned investors. The group includes professional athletes Drew Brees, Tim Tebow, and Mark Ingram II; business leaders such as Horst Schulze (Founder of Ritz-Carlton), George B. Huber, Tyler Toney (Dude Perfect co-founder), and John Venhuizen (CEO of Ace Hardware); as well as former Florida Governor Jeb Bush and several Grammy-winning or nominated artists.
Investor and leadership expert John C. Maxwell commented on the firm’s approach, noting that both its values and financial performance support its model.
Garden City emphasizes that its strategy seeks to balance strong investor returns with long-term operational stability and community impact — a positioning that differentiates it from more traditional private equity structures.
Long-Term Holding Structure
Garden City operates with minimal debt and signals its intention to hold portfolio companies over extended time horizons. The firm also actively engages its shareholder base to support operational growth across its portfolio.
As capital markets evolve and scrutiny of private equity models increases, Garden City’s raise highlights continued investor appetite for alternative ownership structures that combine financial performance with cultural and social considerations.
