Teleo Closes $250 Million Inaugural Fund

TELEO Capital Management has held and oversubscribed hard cap closing of its inaugural fund, TELEO Capital LP, with $250 million of capital.

The firm’s first fund received capital from a range of institutional limited partners including endowments, insurance companies, pension funds, fund of funds and family offices.

“We are honored to welcome such high-caliber institutional investors as long-term partners, and we are grateful for their overwhelming support and confidence amidst a highly competitive fundraising market,” said TELEO Capital in a released statement.

TELEO invests from $10 million to $25 million of capital in North American and European-based companies with $10 million to $100 million of annual revenue. Sectors of interest include technology and software, healthcare IT, business services and industrial.

Earlier this month, TELEO acquired Rand McNally, a Chicago-based provider of fleet management and route mileage optimization software used by carriers, shippers and third-party logistics companies. Rand McNally continues to produce and distribute its iconic atlases and other education-focused products.

Rand McNally was founded in 1873 by William Rand and Andrew McNally. Parts of the company have been sold over the years to various strategic and private equity buyers. In November 1997, the remaining core mapmaking part of the company was sold to AEA Investors for a reported $500 million. In 2003, AEA’s ownership interest was acquired by Leonard Green through a prepackaged Chapter 11 restructuring plan. In 2007, Patriarch Partners, which had been a minority owner, bought out Leonard Green and other minority owners to become the sole owner of Rand McNally. Through a series of transactions between Patriarch, The Zohar Funds (a series of collateralized debt funds related to Patriarch that acquired the debt of Rand McNally), and MBIA Insurance, the decision was made in 2020 to sell Rand McNally.

“Rand McNally is a leader in the fleet management software market.  Its cloud-based telematics platform helps fleets manage increasing regulatory compliance requirements and improves profitability through advanced driver and vehicle analytics.  We see significant future expansion opportunities through both organic and inorganic growth initiatives,” said TELEO Capital in a released statement.

GCA Advisors was Teleo’s placement agent on this fundraise and Goodwin Procter provided legal services.

TELEO has offices in Boise, Idaho and Los Angeles, California

© 2020 Private Equity Professional | November 19, 2020

Print Friendly, PDF & Email