PACIFIC GROWTH INVESTORS

Thesis

Pacific Growth Investors (PGI) is a private equity firm based in Torrance, California, that focuses on the lower middle market. Founded in 2003, PGI specializes in structured growth equity investments for entrepreneurially owned businesses, acting as a control financial sponsor through majority or significant minority equity stakes. PGI's strategy involves a collaborative approach with management, offering financial, operational, and strategic assistance while maintaining operating control. They utilize a mix of preferred equity, common equity, senior secured debt, and subordinated debt. The firm primarily targets companies in the United States, with a preference for the East, Midwest, South, and West regions. PGI has a particular interest in businesses with complex manufacturing processes or differentiated products and services, focusing on sectors such as Aerospace and Aviation, Building Materials, Business Services, Chemicals, Construction, Defense, Electronics, Industrial Equipment and Manufacturing, Information Technology, Internet Software and Services, Machinery, Medical Devices and Diagnostics, Software, and Precision Manufacturing. They target companies with revenues between $5 million and $25 million, with investment sizes typically ranging from $5 million to $25 million. The firm's principals have invested nearly $300 million across 14 companies in three funds since 2003.