December 02, 2020

Gauge Capital Targets Corporate Divestitures in 2021

Southlake, TX – Gauge Capital (“Gauge” or “the Firm”), a leading growth-oriented lower middle market private equity firm, targets corporate divestitures as an area of focus in 2021, in addition to traditional majority, shared-control, and minority investment structures. Gauge has previously invested in corporate carve-outs and has seen positive results backing management teams and providing a variety of resources including talent, capital, and strategic guidance to grow businesses organically and inorganically. Gauge’s experienced investment team has closed over 10 corporate carve-out deals accounting for over $800 million in total enterprise value.

Gauge works with both private and public companies to evaluate non-core assets and create positive outcomes for both sellers and management teams. Two of Gauge’s current portfolio companies, TVC Enterprises and Circa, were results of corporate carve-outs. In 2019, Gauge successfully carved out two divisions of TVC Enterprises, a leading provider of value-added services to commercial truck drivers across the United States. Gauge was able to leverage its robust network of operators to build out the management team and create a solid foundation for growth. Earlier this year, Gauge-backed Circa acquired America’s Job Exchange, a subsidiary of NaviSite and a leading provider of diversity recruitment and OFCCP compliance technology solutions in the United States. The strategic acquisition of America’s Job Exchange will contribute to Circa’s existing capabilities, market presence, and support Circa’s vision as a leader in workforce diversity and OFCCP compliance management.

“Our partnership with Gauge Capital has created significant opportunity for continued growth and success. Gauge’s investment and support has aided in our ability to increase market penetration, establish new value-added services, and expand our industry partnerships. We look forward to building on our initial efforts and delivering an exceptional experience to our fleets and professional truck drivers,” said Jon Russell, CEO of TVC Enterprises.

“We continue to believe there is significant value and opportunity to be had in corporate carve-outs and divestitures,” said Tom McKelvey, Co-Founder and Managing Partner at Gauge Capital. “We are eager to find the next opportunity to partner with and provide the necessary resources so businesses can achieve their long-term visions.”

Gauge is excited to find its next corporate divestiture opportunity and to leverage its operating partner network to enhance the business. Gauge will continue to seek out business units, certain functional capabilities, related products, or service offerings within investment areas of focus. Please contact Andrew Peix, Principal and Director of Business Development, at apeix@gaugecapital.com with any potential opportunities.