What Gauge Capital does

Gauge Capital is a middle-market private equity firm founded in 2013 and headquartered in Southlake, Texas. The firm invests in growth-oriented lower middle-market companies with $50-$500 million in total enterprise value and $5 million or more in EBITDA (or $7 million+ ARR for high-growth businesses), providing majority or minority capital with significant owner/founder rollover. Gauge Capital manages approximately $3 billion in assets under management across four funds as of December 31, 2025, and has executed 41 platform investments with 93 add-on acquisitions to date. The firm is co-led by Drew Johnson and Tom McKelvey, with the Gauge team representing over 25% of committed fund capital, aligning GP and LP interests.

The firm invests across three vertical sectors: Business Services & Technology (covering enterprise software, SaaS, financial tech, human capital, and digital media), Food & Consumer (beauty, food production, packaging, pet health, and restaurant franchisees), and Healthcare (physician practice management, home health, behavioral health, pharma services, healthcare IT, and revenue cycle management). Notable portfolio companies include Ecosystems, Affordable American Insurance, Reliable Medical, Coco & Eve (via Soleil Collective), Comprehensive EyeCare Partners, Urology America, Rovia Clinical Research, and NINJIO. Deal sourcing relies on a dedicated business development team per sector, supplemented by founder referrals, investment banker relationships, and an Operating Partner network spanning healthcare, education, transportation, and consumer industries.

The firm's revenue model follows the standard private equity structure: recurring management fees on committed or invested capital across four funds, plus carried interest (performance fees) earned on investment returns above preferred return thresholds. Revenue is not publicly disclosed. Distribution to portfolio companies occurs through direct origination and partnership with founders and management teams; capital is raised from institutional LPs (pension funds, endowments, family offices) and the firm's own team via a dedicated investor relations function.

Name

Gauge Capital

Legal name

Gauge Capital LLC

Website

http://gaugecapital.com

Company type

Private

Founded year

2013

Operating status

Operating

Headcount range

11–50 employees

Short description

Gauge Capital is a middle-market private equity firm founded in 2013 that manages approximately $3 billion in AUM across four funds. It invests growth capital in $50-$500M enterprise value companies across Business Services & Technology, Food & Consumer, and Healthcare sectors, having completed 41 platform and 93 add-on investments.

Ownership category

akta.pro rank

Product category

Private Equity (Middle-Market Buyout)

NAICS

Funds, Trusts, and Other Financial Vehicles (525), All Other Financial Investment Activities (52399)

SIC

Investment Advice (6282)

akta.pro primary industry

Equity Capital Advisory (Private Equity Placements, Growth Capital) (BPAHAOAE)

Keywords

• Middle-market private equity
• Growth capital investments
• Buyout partnerships
• Portfolio company acquisitions
• Institutional fund management

Headquarters

HQ city

Southlake

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Others

Revenue model

1. Management Fees: Private equity management fees charged on committed or invested capital to fund operations and investment activities. Gauge Capital manages approximately $3 billion in assets under management across four funds.
2. Carried Interest (Performance Fees): Carried interest earned on investment returns above preferred return thresholds in each fund. This is the primary profit-sharing mechanism for private equity firms, aligning GP and LP interests.

Go-to-market motion2 records

Distribution channels2 records

Marketing channels4 records

Core offering

Gauge Capital is a middle-market private equity firm that raises institutional capital through closed-end funds and deploys that capital into majority and minority equity investments in operating companies. The firm partners with founders and management teams of businesses with $50M–$500M enterprise value and $5M+ EBITDA across Business Services & Technology, Food & Consumer, and Healthcare, providing growth capital, recapitalizations, and add-on acquisition financing alongside operational and strategic support.

Product overview

Gauge Capital is a middle-market private equity firm that provides investment and capital partnership services rather than technology products. The firm offers strategic growth capital, recapitalization, and acquisition financing to portfolio companies across three primary sectors: Business Services and Technology, Food and Consumer, and Healthcare. The firm's investment approach focuses on partnering with founders and management teams to provide capital resources, operational expertise, and strategic guidance for organic growth and add-on acquisitions. Gauge Capital's service offering includes growth equity investments, platform acquisitions, add-on acquisition financing, and corporate carve-out support, targeting companies with $50M-$500M enterprise value and $5M+ EBITDA.

Differentiator

Problem solved

Functional benefit

Products and services

• Gauge Capital III Fund Third flagship private equity fund closed at $800 million in January 2021, deployed as growth and buyout capital into lower middle-market companies in Business Services & Technology, Food & Consumer, and Healthcare. The Gauge Capital team is the largest investor in the fund, representing over 25% of committed capital.
• Gauge Capital IV Fund Fourth flagship private equity fund closed at $1.4 billion in March 2024, continuing Gauge Capital's strategy of investing in lower middle-market companies with $50M–$500M enterprise value and $5M+ EBITDA.
• Middle-Market Growth and Buyout Investments

Quantifiable outcome

• Ranked No. 15 out of over 1,400 funds in the 2025 HEC Paris-Dow Jones Lower MidMarket Buyout Performance Ranking
• +1 more outcomes

Named customers1 record

Segments4 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Five partnerships are on record, tiered supporting and core.

• Ropes & GraysupportingOthers · 20 January 2026Ropes & Gray served as legal counsel to Ecosystems in connection with Gauge Capital's strategic growth investment. The deal was also supported by financial advisors Canaccord Genuity and Raymond James, with three Gauge Capital executives joining Ecosystems' Board of Directors.
• Canaccord GenuitysupportingOthers · 20 January 2026Canaccord Genuity served as a financial advisor to Ecosystems in connection with Gauge Capital's strategic growth investment. The deal was also supported by legal counsel Ropes & Gray and financial advisor Raymond James.
• Raymond JamessupportingOthers · 20 January 2026Raymond James served as a financial advisor to Ecosystems in connection with Gauge Capital's strategic growth investment. The deal was also supported by legal counsel Ropes & Gray and financial advisor Canaccord Genuity.
• Harris WilliamssupportingOthers · 5 January 2026Harris Williams acted as exclusive financial advisor to Reliable Medical on its sale to Gauge Capital in a healthcare M&A transaction. Reliable Medical is a provider of complex rehabilitation technology (CRT) and mobility solutions founded in 1989, headquartered in Nashville, Tennessee.
• Portfolio Companies (Ecosystems, AAI, Rovia, etc.)coreOthersGauge Capital has made strategic growth investments in multiple companies including Ecosystems (Customer Value Management SaaS), Affordable American Insurance (tech-enabled P&C insurance agency network), Rovia Clinical Research (clinical trial management), and numerous other platform investments across healthcare, business services, and consumer sectors.

Scale indicators7 records

Recent moves9 records

Expansion highlights6 records

Direct peers

• Trinity Hunt Partners: Trinity Hunt Partners is a Dallas-based lower middle-market private equity firm targeting founder-led businesses across business services, consumer, and healthcare. Highly comparable to Gauge in fund size, sector focus, and founder-friendly orientation.
• Boyne Capital Partners: Boyne Capital is a lower middle-market PE firm focused on Business Services, Consumer Products/Services, and Healthcare companies in the $10M-$100M EBITDA range. Closely comparable to Gauge in sector focus and deal-size sweet spot.
• Main Post Partners: Main Post Partners is a lower middle-market PE firm investing in Business Services, Consumer, and Healthcare companies. Directly comparable to Gauge on fund size, sector mix, and partnership-with-founders thesis.
• Shore Capital Partners: Shore Capital Partners is a lower middle-market PE firm investing in healthcare, consumer, and business services with a founder-focused model. Highly comparable to Gauge on sector coverage, check size, and founder-friendly positioning.
• Linden Capital Partners: Linden Capital Partners is a healthcare-focused lower middle-market PE firm based in Chicago. Directly comparable to Gauge's healthcare vertical given similar fund size, healthcare-only mandate, and partnership approach with management teams.
• New MainStream Capital: New MainStream Capital is a lower middle-market PE firm investing in Business Services, Consumer, and Healthcare companies. Directly comparable to Gauge on fund size, sector focus, and lower mid-market deal orientation.
• Aldrich Capital Partners: Aldrich Capital Partners is a lower middle-market PE firm targeting growth-oriented companies in healthcare, business services, and consumer. Comparable to Gauge on check size, sector mix, and partnership-with-founders model.
• Periscope Equity: Periscope Equity is a lower middle-market PE firm focused on tech-enabled business services and healthcare services companies. Comparable to Gauge on Business Services & Technology focus and check-size range.
• Leeds Equity Partners: Leeds Equity Partners is a middle-market PE firm focused on knowledge-based, business services, and consumer companies. Comparable to Gauge on sector overlap, particularly in business services and consumer, with a similar founder-friendly partnership approach.

Broad incumbents

• Avista Capital Partners: Avista Capital Partners is a middle-market PE firm focused on healthcare and consumer businesses. Comparable to Gauge on sector overlap, but with a larger, more established franchise and broader institutional LP base.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks5 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/gauge-capital

Revenue estimate

Valuation estimate

Number of profiles

Profiles14 records

Funding overview

Funding rounds2 records

Investors2 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A12 records

Investments19 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Gauge Capital