Gauge Capital
TOP 50 PE Winner
2021 | 2022 | 2023
Primary Address
1256 Main Street #256, Southlake, Texas 76092
Website
https://gaugecapital.com/
Phone Number
862-222-6969
Which best describes the firm?
Traditional | LP Funded
Firm Inception
2013
Leadership
Tom McKelvey – Co-Founder and Managing Partner
Drew Johnson – Co-Founder and Managing Partner
James Jackson – Partner
David Friedman – Partner
Team Members
49
Firm Overview
Gauge Capital is a lower middle-market private equity firm that is currently investing out of its 3rd fund. It is an $850m fund, and 30% of our capital comes from our team. Gauge invests in five key sectors: healthcare, technology, business services, government & industrial services, and food & consumer. Gauge invests in services business with $5m+ EBITDA and software businesses with $5m+ ARR. New platform investments typically range from $50m-$250m TEV across both majority and minority deals. The firm manages more than $2.0 billion in capital and in 2020, 2021 and 2022, Inc. Magazine named Gauge one of the top private equity firms for founders. In 2021 and 2022, Gauge was also named to the Top 50 PE Firms in the Middle Market by Grady Campbell. In 2021, 2022, and 2023 Gauge was also named to the Top 50 PE Firms in the Middle Market by Grady Campbell. In 2022, Gauge ranked in the top 5 out of 517 private equity firms in the HEC Paris – DowJones Small-Cap Buyout Performance Ranking.
Why do prospects want to do business with the firm?:
Inc List has named Gauge Capital as a Founder Friendly Investor 3 years in a row. Gauge prides itself not only on its returns but also on how we treat others. We work with founders to grow their business to the next level, helping founders and their families achieve financial security and success. Business brokers and investment bankers know that Gauge has industry leading returns. Alongside those returns, the capital commitment coming from the Gauge team allows us to work with the business owners we back as true partners. Mathematically speaking, we are the two largest shareholders following the investments we make, and this alignment of capital and interests makes us a compelling option for founders.
Why do intermediaries present opportunities and want to conduct transactions with the firm?:
Gauge Capital has a dedicated Business Development team responsible for finding the best investment opportunities. Gauge prides itself on its efficient, yet thoughtful evaluation of new opportunities. Not only can we quickly review an opportunity and determine whether it’s a fit for Gauge, but we also provide meaningful feedback to intermediaries as to why a business or investment opportunity might not be a fit. This feedback helps intermediaries show Gauge better deals that Gauge might end up buying, and it also provides feedback to a business owner as to what they could improve on to make private equity groups more interested. Furthermore, our platform LOI signed to close rate across the firm is north of 90%. We pride ourselves in being a quick no or a reliable yes, and intermediaries have expressed appreciation for that approach to doing business time and time again.
Contact
1256 Main Street #256, Southlake, Texas 76092
Call 862.222.6969 → | Visit gaugecapital.com →