San Diego proves that Los Angeles isn't the sole corporate magnet in Southern California. With dynamic capital markets and a business-friendly environment, the city offers private equity firms ample opportunities to thrive and generate long-term value. Its economy is powered by robust sectors including advanced manufacturing, biotechnology, and defense and aerospace—making it a natural fit for institutional capital and strategic investment. Complemented by its warm climate, coastal charm, and proximity to Los Angeles and Santa Monica, San Diego is not only a desirable destination but also a rising innovation hub. Often called “America’s Finest City,” it is rapidly emerging as one of the nation’s leading centers for breakthroughs in the Life Sciences sector.
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In this article, we’re spotlighting the top private equity firms in the San DIego metro area that are leading the charge in deal-making and market transformation. By the end, you’ll gain a deeper understanding of these firms, their investment strategies, and their impact on the private equity space.
1. StepStone Global
Overview: StepStone Group is a global private markets investment firm with $709 billion in capital responsibility and $189 billion in AUM (as of March 2025). With 28 offices and over 1,130 professionals, it offers customized investment and advisory solutions across private equity, private debt, real estate, and infrastructure. StepStone combines global reach with local expertise, using data-driven insights and collaborative execution to serve institutional and private clients.
Focus: StepStone’s strategy spans fund investments, secondaries, co-investments, and directs across private markets. Its private equity platform creates tailored portfolios that adapt to market cycles, leveraging deep sector expertise and analytics. Additional services include asset management, advisory, and private wealth solutions, with a global footprint across the Americas, Europe, and Asia-Pacific.
2. Bridgewest Group
Overview: Bridgewest Group is a privately held global investment firm founded in 1999 with over $3 billion in private capital. It focuses on nurturing and scaling transformational businesses in sectors like life sciences, software, semiconductors, AI/deep tech, finance, and real estate. Bridgewest offers a unique operational ecosystem—spanning accounting, legal, HR, and administration—empowering CEOs to devote themselves entirely to growing their companies. Most portfolio CEOs stay within the Bridgewest ecosystem after exits, reinforcing its people-centric and entrepreneur-first philosophy.
Focus: Bridgewest concentrates its efforts on four core technology-driven sectors: Life Sciences, Software, Semiconductor, and Artificial Intelligence. Its investment lifecycle encompasses everything from idea incubation to company maturity. The firm leverages its global ecosystem—especially through its Bridgewest Ventures New Zealand incubator—to launch and scale ventures, often placing experienced executives in leadership roles and tailoring capital structures (equity, debt, hybrids) to fit each company’s needs. Bridgewest also invests in real estate assets—commercial, mixed-use, and residential—to support its portfolio operations and generate additional returns.
3. Sweetwater Private Equity
Overview: Sweetwater Private Equity is a California-based investment firm specializing in private equity fund investments, co-investments, and secondaries. Founded in 2020, the firm seeks to provide differentiated access to lower middle-market opportunities by partnering with top-tier sponsors and leveraging its team’s extensive experience in fund underwriting and direct investing.
Focus: Sweetwater focuses on U.S.-based lower middle-market companies, typically targeting inefficient segments of the private equity landscape overlooked by larger investors. Its investment strategy centers on sourcing compelling fund managers, executing co-investments alongside those sponsors, and acquiring secondary interests in established funds. Sweetwater emphasizes disciplined underwriting, long-term partnerships, and diversification across sectors, strategies, and geographies to drive consistent returns.
4. Castle Creek Capital
Overview: Castle Creek Capital is an alternative asset management firm specializing in the community banking industry. Headquartered in San Diego and Dallas, the firm has been an active investor in this space since 1990, managing eight private equity funds and multiple special situations vehicles. With over 100 years of combined experience—spanning both operating and investing in banks—the team provides uniquely informed insight and support to its portfolio companies. Castle Creek’s approach is grounded in a disciplined, value-oriented philosophy that emphasizes operational experience, long-term partnerships, and regulatory expertise.
Focus: Castle Creek targets undervalued or underappreciated assets in the community banking and financial services sectors, where inefficiencies and limited competition allow for attractive pricing. The firm does not participate in auctions but proactively sources investments it wants to own, focusing on opportunities to unlock latent value. It emphasizes operational improvements, KPI tracking, and strategic governance through its operating partner model. Additionally, Castle Creek supports capital deployment decisions, M&A analytics, and balance sheet restructuring, all within the regulatory and economic context unique to community banking. The firm's repeatable, risk-adjusted investment process is designed to drive consistent value creation and downside protection.
5. Verde Equity Partners
Overview: Verde Equity Partners is a private investment firm based in San Diego with a mission to acquire commercial landscaping companies across the Western U.S. The team brings hands-on operational experience, having previously owned and operated landscaping businesses themselves. They prioritize relationships, cultural alignment, and a deep understanding of the markets in which they invest. Verde positions itself not just as capital providers but as seasoned operators who understand the nuances of founder transitions and small business dynamics.
Focus: Verde targets commercial landscape maintenance companies, with a strong preference for those driven by maintenance revenue rather than construction or design. They are flexible on deal size, typically investing in companies with $300k to $5M in EBITDA. Their geographical emphasis is tightly concentrated on the Western United States—particularly the Southwest—with a strategy to remain within a two-hour flight radius from San Diego. They seek opportunities where their operating knowledge and regional familiarity create a distinct edge.
6. Karmel Capital Management
Overview: Karmel Capital is a private equity firm founded in 2013 by two experienced technology investors. Based in Solana Beach, California, the firm specializes in acquiring equity stakes through transactions with existing shareholders. It is dedicated to investing in high-growth, privately held enterprise software companies, with a firm commitment to supporting innovation and disruption.
Focus: Karmel Capital focuses exclusively on disruptive technologies, particularly within enterprise software. Its portfolio includes companies such as CoreWeave, Algolia, Intercom, and Attentive. The firm targets high-growth opportunities where transformative technology is reshaping industries, and it partners with management teams to accelerate value creation.
7. Accord Asset Partners
Overview: Accord Asset Partners is a U.S.-based private equity firm focused on delivering value to both investors and management teams by providing growth capital, operational expertise, and strategic partnership. With over 50 years of combined entrepreneurial and operational experience, Accord brings a hands-on, empathetic approach to investing—working closely with founders and leadership teams to unlock long-term potential. The firm emphasizes strong relationships and deep engagement as it helps businesses scale efficiently and sustainably.
Focus: Accord targets control buyout transactions involving U.S.-headquartered businesses with $1–15 million in EBITDA and clear, actionable growth opportunities. The firm is particularly well-suited for businesses seeking first-time institutional capital, including founder-led or management-led companies looking for a strategic partner to accelerate their next phase of growth. Accord seeks to back strong leadership teams with scalable models, offering more than just capital—bringing deep operational insight and strategic support to drive results.
8. HCAP Partners
Overview: HCAP Partners is a Southern California-based impact investor focused on providing acquisition and growth capital to underserved lower-middle market businesses across the United States. Since 2008, the firm has raised five funds and managed over $670 million in capital. With more than 65 investments and 12,335 employees across its portfolio, HCAP is committed to supporting economic well-being and generating both financial returns and social impact through its Gainful Jobs Approach™.
Focus: HCAP targets companies generating $10–$100 million in revenue and $1 million or more in EBITDA, seeking investments between $5 million and $35 million. The firm invests across healthcare, technology, manufacturing, and services, using flexible structures such as mezzanine debt, preferred equity, and both control and minority equity. HCAP emphasizes value creation through operational improvements, strategic guidance, governance support, and job quality enhancement. Their investment approach is designed to improve enterprise value while creating sustainable, high-quality employment outcomes.
9. TVC Capital
Overview: TVC Capital is a San Diego-based private equity firm founded in 2006 by former technology executives. With a current fund of $150 million and investment sizes ranging from $8M to $25M, the firm specializes in growth equity for B2B software companies. TVC Capital brings capital, strategic resources, and operational expertise to help companies scale, pursue a range of transaction structures, and achieve successful exits.
Focus: TVC targets mission-critical software firms with $3M+ in ARR and partners closely with management teams to drive growth and value creation. Their flexible transaction approach allows for minority investments, recapitalizations, and full buyouts. Backed by a team of seasoned software operators, the firm emphasizes hands-on support and functional enhancement to differentiate itself from other investors.
10. Seaside Equity Partners
Overview: Seaside Equity Partners is a San Diego-based private equity firm focused on making control investments in founder-, family-, and entrepreneur-owned companies across the Western U.S. The firm is growth-oriented and seeks to build sustainable equity value through true partnership and operational engagement. Seaside is recognized for its collaborative, value-added approach and aims to provide institutional capital to businesses with strong foundations and potential for outsized growth.
Focus: Seaside targets companies providing mission-critical services with EBITDA of up to $15 million. Its investments are concentrated in the Western United States, with no geographic limitations for add-on acquisitions. The firm seeks majority ownership positions and prioritizes alignment with key stakeholders. It operates two fund strategies: the Flagship Fund, targeting platforms with $3–$15M EBITDA, and the Navigator Fund, targeting $1–$3M EBITDA companies historically underserved by private equity.
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