TELEO Capital Management, an operationally focused private equity firm specializing in lower middle market enterprise software companies, announced the final close of TELEO Capital II (Fund II) at its hard cap of $350 million in Limited Partner capital commitments. The fund was oversubscribed, drawing participation from a broad base of both new and returning institutional investors.
The new fund builds on TELEO’s proven investment strategy of acquiring and scaling mission-critical software divisions of larger corporations. With a strong emphasis on operational excellence and partnership, TELEO positions itself as an ideal buyer for corporate carve-outs, offering sellers speed and certainty to close, limited post-closing distractions from shared services agreements, and a focus on maintaining customer and employee continuity.
TELEO’s investment model combines an experienced operating team with a repeatable playbook designed to deliver consistent, above-market returns. Fund II will continue targeting enterprise software platforms that can benefit from TELEO’s operational expertise and technology-driven growth initiatives.
In addition to expanding its core strategy, TELEO plans to deploy Artificial Intelligence (AI) across its portfolio companies, using AI tools to enhance product development efficiency and drive revenue acceleration through optimized go-to-market strategies.
Goodwin Procter LLP served as legal counsel to TELEO, while Metric Point Capital acted as the exclusive placement advisor.
TELEO Capital invests in lower middle market businesses across technology, healthcare, and business services. The firm partners with management teams to improve operations and drive growth, focusing on carveouts, founder-led businesses, and underperforming assets. TELEO is headquartered in Boise, Idaho, with an additional office in Los Angeles, California.
KEY QUOTES:
“We are honored by the trust our investors have placed in us, and we are excited to capitalize on the current environment.”
George Kase, Co-Founder and Managing Partner, TELEO Capital
“Our team’s extensive experience in software carve-outs and operational capabilities position us to compete extremely well in this segment of the market.”
Andres Martinez, Co-Founder and Managing Partner, TELEO Capital
“With Fund II, we are excited to continue expanding our value creation toolset with the adoption of Artificial Intelligence (AI) across the portfolio. With AI, we see tremendous opportunities for cost reductions in product development and revenue growth via accelerated go-to-market.”
Robb Warwick, Co-Founder and Managing Partner, TELEO Capital
