TELEO Capital Management, LLC (“TELEO”), a lower middle market private equity firm specializing in acquiring corporate carve-outs and other complex transactions across enterprise software and tech-enabled services, today announced the final close of TELEO Capital Fund II (“Fund II”) at its hard cap of $350 million in Limited Partner capital commitments. Fund II was significantly oversubscribed, reflecting strong investor confidence in TELEO’s proven track record, and drew commitments from a diverse array of new and existing institutional investors.

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Seeded Portfolio Demonstrates Immediate Execution

Fund II launched with two acquisitions that exemplify TELEO’s carve-out expertise and value-creation playbook:

• Softrax, a leading provider of revenue recognition and billing management software, was acquired from TELUS Corporation. TELEO is accelerating Softrax’s product roadmap and expanding go-to-market capabilities to better serve current and future customers.
  
• Numodata, a global software company specializing in AI-powered network intelligence, AIOps, and advanced analytics for communications service providers (“CSPs”) and enterprises was acquired from EXFO Inc. Under TELEO’s ownership, Numodata is investing heavily in AIOps to help CSPs unlock new value from their networks.
  

TELEO’s team has collectively executed 70+ carve-outs throughout their careers.

Building on a Proven Playbook for Carve-Out Excellence

TELEO executes a focused strategy committed to the lower middle market. By leveraging a large, purpose-built team of over 25 investment and operational professionals, TELEO employs a repeatable, disciplined process engineered specifically for corporate carve-outs. This operational depth enables the firm to navigate complexities with precision, minimizing distractions and helping businesses undergoing operational or strategic challenges return to growth.

In an era of strategic portfolio optimization, corporate sellers increasingly seek partners who can execute seamless transitions. TELEO’s platform and extensive carve-out experience ensures uninterrupted operations, safeguarding critical customer relationships and retaining top talent through proactive retention programs and cultural alignment initiatives—providing a positive experience for all stakeholders.

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