Gauge Capital has held a final closing of the firm’s debut fund, Gauge Fund LP, at $250 million. Gauge began fundraising in April 2014 with a target of $175 million, and in September held an oversubscribedfinal closing at its self-imposed limit of $250 million in commitments.
Gauge Capital invests from $10 million to $50 million in North American based companies that have $5 million to $50 million of EBITDA. Sectors of interest include business and consumer services, healthcare services and food services. The firm will consider both majority and minority investments.
Gauge Capital 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. Gauge Capital is based near Dallas in Southlake, TX (www.gaugecapital.com).
The new fund will make equity investments in eight to ten companies over the next several years. Gauge has already closed on its first portfolio company with a $43 million investment in Origami Owl, a custom jewelry company that uses a direct sales business model (www.origamiowl.com).
Mr. Johnson and his partners at Gauge, through the fund’s general partner, are collectively the largest investor in the new fund. Limited partners include many 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 chosen to invest with us.”
Gauge Capital used Harken Capital Securities as its exclusive placement agent and Ropes & Gray provided the firm with legal counsel.
2014 PEPD • Private Equity’s Leading News Magazine • 10-29-14