October 2014—Southlake, TX: Gauge Capital LLC (“Gauge”) is pleased to announce the final closing of its debut private equity fund, Gauge Fund LP (“Fund”). Gauge began fundraising in April 2014 with a target of $175 million, and in September held an oversubscribed final closing at its self-imposed limit of $250 million in commitments.
Gauge’s primary aim is to assist its portfolio companies with long-term value creation through transformational change, as well as organic and strategically acquired growth. The Fund intends to make $10-40 million equity investments in eight to ten companies over the next several years. Gauge primarily targets businesses in three sectors:
– Healthcare Services
– Business and Consumer Services
– Food Services
Gauge seeks to create value in part by aligning interests with limited partners and with portfolio company owners and managers. Collectively, the general partners are the largest investor in the Fund. Consistent with past practice of the general partners, Gauge seeks investments where managers and owners with ongoing involvement maintain ownership levels that are materially greater than levels in typical buyout transactions. The Fund has already completed one such investment.
Limited partners include a range of sophisticated institutional investors, including endowments, foundations, family offices, and asset managers. “We are pleased with the reception we received from the institutional investment community,” said Partner Whitney Bowman “and are especially thankful for the numerous operating executives in our targeted sectors who have invested in the Fund.”
The firm was co-founded in 2013 by Managing Partners Drew Johnson and Tom McKelvey, who each have over 20 years of experience as investors, operators, board members, and advisors, primarily in the middle market.
Harken Capital Securities, LLC (member FINRA, SIPC) served as exclusive placement agent, and Ropes & Gray LLP provided legal counsel to the Fund.