NORTHERN PACIFIC GROUP, L.P.

Thesis

Northern Pacific Group (NPG), founded in 2012 and based in Minneapolis, Minnesota, is a private equity firm specializing in the lower middle market. NPG focuses on acquiring and investing in US-based companies, with a strong preference for the upper Midwest. Their target companies typically have revenues between $10 million and $100 million and exhibit characteristics such as recurring revenue, high gross margins, and clear growth potential. NPG's investment strategy involves growth investments and buyouts, aiming to create value through operational improvements and strategic initiatives in sectors including business services, technology, industrials, information technology, internet software and services, media, medical products, real estate, renewable energy, and transportation. While AUM figures vary, one estimate places it around $163 million, with a reported latest fund size of $650 million. NPG typically invests between $363,000 and $3.6 million per deal. The firm is registered as an RIA and is a signatory to the Principles for Responsible Investment (PRI).