TELEO Capital

What TELEO Capital does

TELEO Capital Management, LLC is an operationally-focused, lower middle market private equity firm founded in 2018 and headquartered in Boise, Idaho with an additional office in El Segundo, California. The firm targets software and technology, healthcare IT, business services, and industrial companies with $10M–$100M in revenue, deploying $10M–$30M of equity per platform investment through corporate carve-outs, leveraged and management buyouts, special situations, and buy-and-build strategies. As of 2024, TELEO manages over $500 million in assets across two institutional funds — Fund I ($250M, closed November 2020) and Fund II ($350M, closed November 2025 at hard cap, oversubscribed) — and has completed 19+ transactions since inception.

The firm's competitive model emphasizes speed and certainty of close, fluid ownership transitions, and preservation of customer, vendor, and employee relationships, supported by a 25+ person investment and operating team whose senior leadership (Managing Partners George Kase, Andres Martinez, and Robb Warwick) and Operating Partners collectively bring experience on 70+ carve-out transactions, predominantly from Marlin Equity Partners. Portfolio holdings span revenue management (SOFTRAX, BluLogix), contact center and cloud communications (Sharpen, Ytel, Plum Voice, Webtext), fleet management and connected vehicles (Rand McNally, Fleetsu, MileMaker, SafetyDirect), aviation and aerospace content (Flatirons Solutions, Scope AR, Paxia), critical infrastructure cybersecurity (Industrial Defender), wealth management software (Univeris, TechRules), healthcare administration (CHCS Services/Wellcove, AssuriCare), enterprise project portfolio management (UMT360), and AI-powered network intelligence (NumoData) and pharmaceutical manufacturing intelligence (Modersys).

TELEO generates revenue through two primary streams typical of private equity: (1) recurring management fees charged as a percentage of committed capital under management across Fund I and Fund II, and (2) performance-based carried interest on fund returns above the hurdle rate, realized upon successful exits of portfolio companies such as the 2023 sale of UMT360. Fundraising is conducted exclusively with institutional limited partners (endowments, pension funds, family offices, sovereign wealth funds) through private placement, with no retail distribution. Portfolio companies sell enterprise software and services directly to Fortune 500 and mid-market customers across aerospace and defense, automotive, financial services, healthcare, telecommunications, and critical infrastructure sectors, leveraging both direct sales and channel partner models.

Name

TELEO Capital

Legal name

Teleo Capital Management, LLC

Website

http://www.teleocapital.com/

Company type

Private

Founded year

2018

Operating status

Operating

Headcount range

11–50 employees

Short description

TELEO Capital is a lower middle market private equity firm founded in 2018 that acquires and operates enterprise software, healthcare IT, business services, and industrial companies through corporate carve-outs and buy-and-build strategies, managing $500M+ across two institutional funds for blue-chip limited partners.

Ownership category

akta.pro rank

Product category

Private Equity / Investment Management

NAICS

Other Investment Pools and Funds (5259)

SIC

Security Brokers, Dealers & Flotation Companies (6211)

akta.pro primary industry

Large-Cap / Mega-Fund Buyout (FSANABAA)

Keywords

• Private equity investments
• Corporate carve-outs
• Lower middle market
• Software technology investing
• Leveraged buyouts

Headquarters

HQ city

El Segundo

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Others

Revenue model

1. Fund Management (Management Fees): TELEO Capital earns management fees on its private equity funds (Fund I at $250M and Fund II at $350M), typically charged as a percentage of committed capital under management.
2. Carried Interest (Performance Fees): TELEO Capital earns carried interest (carry) on fund returns above the hurdle rate upon successful exits of portfolio companies. This is the primary performance-driven revenue stream for the private equity firm.

Go-to-market motion2 records

Distribution channels1 record

Marketing channels7 records

Core offering

TELEO Capital is an operationally-focused private equity firm that invests $10M-$30M per platform into lower middle market software, technology, healthcare IT, business services, and industrial companies with $10M-$100M in revenue. The firm specializes in corporate carve-outs, leveraged and management buyouts, special situations, operational partnerships, and buy-and-build strategies. It earns revenue through management fees on committed fund capital and carried interest on successful exits, while providing portfolio companies with capital, strategic guidance, and operational resources to drive value creation.

Product overview

TELEO Capital is a private equity firm that invests in lower middle market enterprise software, healthcare IT, business services, and industrial sectors. The firm operates a portfolio of software and technology companies across diverse industries including pharmaceutical manufacturing intelligence (Modersys), contact center solutions (SharpenCX), cloud communications (Ytel, Webtext), revenue management (BluLogix, SOFTRAX), fleet management (Rand McNally, Fleetsu, MileMaker), aviation software (Flatirons, Paxia), cybersecurity (Industrial Defender), wealth management (Univeris, TECHRULES), healthcare administration (Wellcove/CHCS, AssuriCare), and project portfolio management (UMT360). These portfolio companies offer various AI-powered capabilities including predictive analytics, anomaly detection, process automation, and conversational AI. The portfolio companies collectively serve major industries including aerospace, defense, telecommunications, healthcare, financial services, and transportation.

Differentiator

Problem solved

Functional benefit

Products and services

• Modersys (SmartFactory Rx) AI/ML-powered pharmaceutical manufacturing intelligence platform that helps biopharmaceutical and nutritional manufacturers improve yields by up to 10%, throughput by up to 15%, and reduce experimental efforts by 50%. Acquired by TELEO Capital from Applied Materials in June 2026.
• Scope AR Intelligent visual work instructions and remote expert technology platform merged into Flatirons Solutions for aerospace, aviation, MRO, and defense organizations, creating AR-powered guided execution and remote collaboration capabilities for frontline operations.
• Ytel Cloud-based communications platform providing SMS, voice, and multi-channel messaging capabilities for businesses. Founded in 2012 and headquartered in Irvine, California.
• NumoData AI-powered network intelligence, AIOps, and advanced analytics platform for communications service providers and enterprises, featuring agentic AI-driven troubleshooting, semantic digital twins, and automated remediation. Formed in 2025 following TELEO's acquisition from EXFO.
• BluLogix (BluIQ) Intelligent subscription billing and revenue management software platform enabling businesses to grow recurring revenue models while ensuring compliance with ASC 606 and IFRS 15, with real-time analytics, agentic automation, and adaptive intelligence. Founded in 2013, based in McLean, Virginia.
• SOFTRAX Industry-leading revenue management software combining order management, best-in-class billing, contract renewal management, and ASC 606/IFRS 15 revenue recognition in a single multi-tenant cloud platform.
• SafetyDirect Video-based driver safety platform with a web portal enabling fleet operators to access driver performance information, event-based data, video, vehicle, and sensor information from vehicle J1939 networks.
• Plum Voice AI-driven voice-based customer interaction technology providing programmable communications including advanced IVR systems and conversational AI for contact centers.
• AssuriCare Comprehensive suite of software tools for home care agencies, registries, and insurers to manage long-term care claims and provider networks.
• Webtext Communications Platform as a Service (CPaaS) providing turnkey enterprise messaging for contact centers with API-driven integration capabilities.
• SharpenCX Cloud-native contact center platform (CCaaS) and Unified Communications-as-a-Service (UCaaS) solution with omnichannel agent interface and advanced analytics. Founded in 2011, based in Indianapolis.
• Rand McNally Fleet Fleet management and logistics software solutions and connected vehicle technology including mileage, routing software, and driver technologies.
• MileMaker Innovative routing and mileage optimization software with GIS expertise providing over 30% more truck-specific attributes than other routing software, part of the Rand McNally fleet portfolio.
• Paxia (IFX and GP) Enterprise SaaS applications for inflight catering services supply chain management. IFX is cloud-based catering management suite; GP provides galley planning optimization.
• Industrial Defender Cybersecurity and compliance software solutions for critical infrastructure providers with management platform for industrial control systems addressing cybersecurity, compliance, and change management.
• Univeris Enterprise wealth management software platform enabling financial institutions to offer personalized investment services with operations control, compliance, and client management.
• Teesnap Cloud-based golf course operations management software providing tee time scheduling, point-of-sale, pricing optimization, inventory management, and business reporting.
• Flatirons Solutions Technical content management solutions for aviation and aerospace industries enabling organizations to create, publish, and streamline critical information. Headquartered in Boulder, Colorado.
• CHCS Services (Wellcove) Technology-enabled third-party administrator for senior health and eldercare markets specializing in long-term care and Medicare Supplement plans.
• TELEO Capital Fund I and Fund II private equity funds Closed-end private equity funds investing $10M-$30M per platform into lower middle market software, technology, healthcare IT, business services, and industrial companies through corporate carve-outs, leveraged and management buyouts, special situations, and buy-and-build strategies.

Quantifiable outcome

• 19 transactions closed since inception, managing over $500M in assets as of 2024
• +3 more outcomes

Named customers11 records

Segments4 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability8 records

Partnerships

Nine partnerships are on record, tiered core, major and minor.

• Scope ARcoreTechnology or Integration · 17 June 2026TELEO Capital portfolio company Flatirons Solutions acquired Scope AR on June 17, 2026, combining two complementary technology platforms into a unified industrial AI offering for aerospace, aviation, MRO, and defense organizations. The merger integrates Flatirons' technical content and task management platform with Scope AR's intelligent visual work instructions and remote expert technology, creating a self-improving intelligence loop across technical workflows.
• EXFO Inc. (NumoData)coreStrategic or Co-development Partner · 20 November 2025TELEO Capital acquired EXFO's Adaptive Service Assurance (ASA) division in November 2025 and formed NumoData as a new independent company. EXFO retains a minority stake in NumoData, and Philippe Morin (EXFO CEO) joined NumoData's board of directors to support smooth transition and ongoing collaboration. NumoData specializes in AI-powered network intelligence, AIOps, and advanced analytics for communications service providers.
• Bendix Commercial Vehicle Systems LLCmajorStrategic or Co-development Partner · 14 March 2024Rand McNally (TELEO portfolio company) acquired SafetyDirect from Bendix CVS. As part of the transaction, Bendix will provide marketing, data, and product integration support, and received an equity stake in Rand McNally/SafetyDirect operations plus an observer seat on the Rand McNally Board of Directors. Bendix will continue to provide integrated data from its braking and driver assistance systems.
• Toyota Motor Corporation, AustraliacoreStrategic or Co-development Partner · 12 April 2022Fleetsu (acquired by Rand McNally, a TELEO portfolio company) has an active partnership with Toyota Motor Corporation, Australia for fleet management solutions. Fleetsu's platform serves as an OEM-embedded fleet solution.
• CareerSpringminorOthers · 1 January 2020TELEO Capital launched a social impact initiative in partnership with CareerSpring, an organization that works to unlock the employment potential of first-generation college students. This partnership supports TELEO's ESG and community initiatives by providing career information, social capital, and job placement services.
• Boise Rescue Mission MinistriesminorOthers · 1 January 2019TELEO Capital team members participate in volunteer activities with the Boise Rescue Mission Ministries, helping sort and organize food, clothes, shoes, and donated items for the holiday season. This supports TELEO's community engagement and ESG commitments.
• Cristo Rey JesuitminorOthers · 1 January 2019TELEO Capital supports Cristo Rey Jesuit through its ESG and community initiatives, an organization that inspires and prepares students of limited economic resources to succeed in college.
• Idaho Youth RanchminorOthers · 1 January 2019TELEO Capital supports Idaho Youth Ranch through its ESG and community initiatives, an organization that provides accessible programs and services for at-risk youth across Idaho.
• Hume Lake Christian Camps & Fellowship of Christian AthletesminorOthers · 1 January 2019TELEO Capital supports Hume Lake Christian Camps and Fellowship of Christian Athletes (FCA) through its community initiatives, partnering for over 15 years in Team Sports Camps.

Scale indicators8 records

Recent moves7 records

Expansion highlights6 records

Broad incumbents

• Thoma Bravo: Largest software-focused private equity firm globally, operating far larger funds and more concentrated software portfolios than TELEO. A relevant benchmark for valuation comparables and software PE best practices, though at substantially greater scale.
• Vista Equity Partners: Enterprise software-focused private equity firm with massive fund sizes and deep operating partner model. Highly relevant as an incumbent comparable for TELEO's software vertical focus, though at materially greater scale and broader portfolio.
• Hg Capital: European-headquartered software and services-focused private equity firm. Comparable for its vertical specialization in software buyouts and lower middle market focus, though with broader European geographic exposure than TELEO.

Direct peers

• Evergreen Pacific Partners: Lower middle market private equity firm where TELEO Partner Matt Oehlmann previously worked. Comparable in fund size, lower middle market focus, and operational value creation approach across similar industries.
• Marlin Equity Partners: Software and services-focused lower middle market private equity firm where all three TELEO Managing Partners previously worked. Marlin shares TELEO's carve-out specialization, team pedigree, and software/technology vertical focus, making it the most direct comparable peer.
• Francisco Partners: Private equity firm exclusively focused on technology and technology-enabled businesses, with a long track record in lower middle market software buyouts and corporate divestitures. Highly comparable to TELEO's software and healthcare IT verticals.
• Platinum Equity: Operationally-focused private equity firm specializing in carve-outs, complex situations, and operational value creation across technology, business services, and industrial sectors. Comparable in strategy, deal size, and carve-out specialization to TELEO.
• Audax Group: Lower middle market private equity firm executing buy-and-build strategies across software, business services, healthcare, and industrial sectors. Comparable in fund size, deal size range, and systematic add-on acquisition approach.
• Gores Group: Operations-focused private equity firm known for corporate carve-outs from large technology and industrial parents. Managing Partner Andres Martinez previously transacted at Gores Group, and the firm shares TELEO's lower middle market carve-out investment thesis.

Regional players

• Bridgepoint: European mid-market private equity firm with comparable lower middle market buyout strategy. Serves as a relevant peer for international expansion benchmarking, though primarily operating in Europe rather than TELEO's North American core market.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xtwitter.com/TELEOCapital
• LinkedInlinkedin.com/company/teleo-capital

Revenue estimate

Valuation estimate

Number of profiles

Profiles13 records

Subsidiaries20 records

Funding overview

Funding rounds

Investors

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

M&A10 records

Investments2 records

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

Frequently asked questions about TELEO Capital