Pfingsten Partners

TOP 50 PE Winner
  • 2020
  • 2021
  • 2022
  • 2023
  • 2024
Firm Overview

Founded in 1989, Pfingsten is an operationally-oriented private equity firm focused on building better businesses. Headquartered in Chicago, with representative offices in China and India, the Firm works with entrepreneurs and management teams to build better businesses by applying its unique operational and global resources to offer real solutions to unlock value and propel growth. As a firm, Pfingsten has closed over 160 investments.

The Firm invests a minimum of 50% equity into the capital structure of each portfolio company, providing the flexibility to create value through operational improvements, professional management practices, global capabilities and profitable business growth.

Why do prospects want to do business with the firm?:

1.) Conservative Capital Structure: Since the firm’s founding in 1989, Pfingsten has historically invested a minimum of 50% equity into the capital structure of each platform company, which allows the management team to focus on building a better business. The conservative capital structures maximize operating flexibility, allow platform companies to weather economic volatility and competitive threats, and increase the firm’s ability to close transactions.

2.) Operating Capability: Pfingsten has five operating professionals that provide hands-on assistance with: (i) strategic and tactical planning; (ii) operational improvements; (iii) due diligence and integration support for add-on acquisitions; and (iv) temporary support in management roles during senior executive transition periods. Pfingsten’s operating partners have a broad array of experience having owned, operated or consulted for much larger and more complex companies than what Pfingsten pursues. In addition, the Firm’s operating partners bring a menu of outsourced services to each portfolio company. Pfingsten’s scale allows it to offer the portfolio companies a wide range of value-added services. Management teams may select outsourced services from the Firm’s preferred vendors to help expedite operational initiatives and ensure proper governance.

3.) Global Capability: Pfingsten has been building global relationships for over a decade to provide its portfolio companies with access to (i) product sourcing through its joint venture offices in China and India; (ii) market entry assistance to sell products into Canada, Central America, South America, Europe, Africa, and Asia by arranging and establishing sales and services infrastructure or distributor relationships; and (iii) add-on acquisition assistance outside the United States to increase revenue off-shore or reduce production costs. Almost 20% of our 108 add-on investments have been domiciled in Canada, the U.K., mainland Europe, or Asia. The Firm also has direct sourcing relationships with suppliers in various other countries, including Mexico, Europe and South America.

Why do intermediaries present opportunities and want to conduct transactions with the firm?:
1.) Firm History: Pfingsten was founded over 35 years ago and has a long history of investing in entrepreneur-owned, middle market manufacturing, distribution and business services companies. The firm and its partners have experienced and weathered many economic cycles and have not deviated from its original investment approach. While other firms have increased their fund sizes and have subsequently had to increase the size of transactions they target, Pfingsten has consistently targeted the same size of companies.

2.) Firm Track Record: The firm has closed over 160 transactions in its history and has closed over 90% of its letters of intent. Pfingsten is known for conducting extensive due diligence prior to signing a letter of intent to ensure it is not only the right transaction for the firm, but that we will close on the transaction. The firm has also never failed to close a transaction due to financing.

3.) Value-Added Partner: Pfingsten brings more than just money to the table for an entrepreneur or management team. We provide operational excellence, best practice exchange forums for management, continuous improvement training for all portfolio company employees, strategic and tactical planning, global reach and sourcing, well qualified outsourced service providers to expedite initiatives, and a host of executives that can tackle project-specific initiatives at each company.


151 N Franklin St. Suite 2150 Chicago, IL 60606
Call 312 222 8707Visit
Firm Inception :

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