Gallant Capital Appoints Josh Carter to Lead Tech Investments

Gallant Capital Partners, a Cleveland-based middle-market private equity firm, has appointed Josh Carter as Partner to lead its technology investment practice, the firm announced this week. The move signals Gallant's strategic emphasis on software and technology-enabled services as it positions for continued growth across its approximately $2 billion in assets under management.

The appointment comes alongside several senior promotions within the firm, including the elevation of Lisa Perry to Chief Operating Officer and multiple advancement announcements across Gallant's investment and portfolio operations teams.

Carter joins Gallant with over 20 years of experience in technology-focused private equity and growth investing. Most recently, he served as a Partner at Riverside Acceleration Capital, where he led investments in software, data analytics, and tech-enabled business services companies. His track record includes successful exits across multiple technology subsectors, with particular expertise in vertical software, marketing technology, and infrastructure software platforms.

Prior to Riverside, Carter held investment roles at several prominent growth equity firms, where he focused on B2B software companies experiencing inflection points in their market penetration and revenue scaling. His operational background includes direct experience working with portfolio company management teams on go-to-market optimization, product development prioritization, and strategic M&A.

The technology sector has become increasingly central to middle-market private equity strategies, with software companies commanding premium valuations and demonstrating resilient recurring revenue models. Carter's appointment reflects Gallant's intention to deepen its capabilities in evaluating and executing technology transactions in an increasingly competitive deal environment.

In conjunction with Carter's appointment, Gallant Capital promoted Lisa Perry to Chief Operating Officer, recognizing her expanded responsibilities across firm operations, human capital, and portfolio company support functions. Perry has been with Gallant for over eight years, previously serving as Vice President of Operations.

As COO, Perry will oversee the firm's operational infrastructure, including technology systems, data management, and operational due diligence processes. She will also continue to play a central role in Gallant's portfolio company value-creation initiatives, working closely with portfolio CEOs on operational improvement programs and talent development.

The COO role has grown in strategic importance at middle-market private equity firms as operational value creation has become a primary driver of returns. With multiple compression limiting exit multiples in many sectors, firms increasingly rely on operational improvements and EBITDA growth to generate attractive returns for limited partners.

Beyond the Carter and Perry appointments, Gallant announced several promotions across its investment team:

These promotions reflect Gallant's commitment to developing talent internally and retaining institutional knowledge as the firm scales its investment activities. The firm has grown its team by approximately 35% over the past three years, adding capabilities in sector-specific origination, operational due diligence, and portfolio company support.

Carter's appointment arrives at a pivotal moment for technology investing in the middle market. After a challenging 2023 marked by valuation resets and compressed exit activity, 2024 showed signs of stabilization, with software multiples recovering modestly and strategic acquirers returning to the M&A market with greater confidence.

According to PitchBook data, middle-market software transactions (enterprise values between $100 million and $1 billion) saw median EV/revenue multiples of approximately 3.8x in Q4 2024, compared to 3.2x in Q4 2023. While still below the peak multiples of 2021-2022, this recovery suggests renewed investor confidence in high-quality, profitable software assets.

The middle-market technology segment has proven particularly attractive to private equity firms because these businesses often combine the growth characteristics of venture-backed startups with the profitability and predictability of mature enterprises. Many middle-market software companies generate 20-30% EBITDA margins while still achieving double-digit organic growth, creating an appealing risk-adjusted return profile.

Carter's background suggests Gallant will pursue opportunities in vertical software and tech-enabled services—subsectors that have demonstrated resilience even during market volatility. Vertical software companies, which serve specific industries with tailored solutions, often exhibit high switching costs and mission-critical status within their customer workflows.

Notable recent middle-market exits in vertical software include Thoma Bravo's acquisition of construction software provider Procore Technologies and Vista Equity Partners' purchase of legal tech platform Clio. These transactions demonstrate continued strategic interest in niche software assets with defensible market positions.

Tech-enabled services represent another growing category within middle-market dealmaking. These businesses combine software platforms with human-delivered services, offering higher revenue durability than pure-play software while maintaining more attractive margins than traditional services businesses. Examples include healthcare revenue cycle management companies, digital marketing agencies with proprietary technology, and specialized data analytics providers.

Gallant Capital Partners manages approximately $2 billion in committed capital across multiple fund vehicles, focusing on control and significant minority investments in lower middle-market companies. The firm typically targets businesses with $10-50 million in EBITDA across healthcare, business services, technology, and industrial sectors.

The firm's investment approach emphasizes operational partnership with management teams, leveraging its internal operating advisors and functional experts to drive organic growth and margin improvement. This model has become standard among successful middle-market firms, as differentiation through operational value-creation capabilities has become essential in a competitive deal environment.

Gallant's recent technology investments have included software platforms serving financial services, healthcare technology companies enabling care coordination, and data analytics providers serving enterprise customers. The firm has demonstrated a preference for companies with high recurring revenue (70%+ of total revenue), strong net revenue retention (110%+), and clear pathways to rule-of-40 performance or better.

With Perry's elevation to COO, Gallant reinforces its commitment to portfolio company support infrastructure. The firm maintains an operating partner network spanning revenue growth, technology optimization, human capital, and financial operations—resources that become increasingly valuable as portfolio companies navigate scaling challenges and market volatility.

Middle-market firms increasingly compete on the strength of their operational capabilities. Limited partners evaluating fund commitments scrutinize firms' value-creation track records, specifically measuring organic EBITDA growth, operational margin expansion, and commercial excellence improvements across portfolios.

Carter's hiring reflects intensifying competition for experienced technology investors in the middle market. As more generalist firms build sector-specific capabilities and specialist technology funds expand into adjacent deal sizes, demand for professionals with proven technology investment track records has escalated.

According to Heidrick & Struggles executive search data, compensation packages for private equity professionals with technology sector expertise increased approximately 18-22% between 2022 and 2024, significantly outpacing growth in other sectors. This premium reflects both the technical complexity of technology diligence and the strategic importance of software investments to portfolio construction.

For middle-market firms without legacy technology portfolios, lateral partner hires represent an efficient path to building sector capabilities. Rather than developing expertise organically over multiple investment cycles, firms can acquire institutional knowledge, industry relationships, and deal-sourcing networks through strategic recruiting.

The leadership appointments suggest Gallant is positioning for accelerated deployment in 2025. With dedicated technology leadership now in place and strengthened portfolio operations capabilities, the firm appears prepared to pursue multiple simultaneous transactions across its target sectors.

Middle-market deployment timelines have extended in recent years as purchase price expectations between buyers and sellers remain misaligned in many sectors. However, technology assets—particularly those with strong growth profiles and profitable unit economics—have seen more efficient price discovery, potentially enabling faster transaction execution for prepared buyers.

Carter's existing industry relationships and sourcing networks should enhance Gallant's access to proprietary deal flow—transactions sourced directly with company management teams or shareholders rather than through competitive auction processes. Proprietary deals typically allow buyers to negotiate more favorable terms and conduct more thorough due diligence than competitive processes permit.

With its expanded leadership team, Gallant enters 2025 with several strategic priorities likely guiding its investment activities:

First, the firm will likely pursue two to four platform investments in technology, leveraging Carter's sourcing capabilities and sector expertise. These platforms may span vertical software, tech-enabled services, and infrastructure software categories where middle-market opportunities remain abundant.

Second, Gallant will probably accelerate add-on acquisitions across its existing portfolio, particularly within portfolio companies that can serve as consolidation platforms in fragmented markets. The firm's strengthened operational infrastructure under Perry's leadership positions it to execute complex integrations and capture synergies from bolt-on transactions.

Third, the firm appears positioned to pursue selective exits in 2025 as public markets stabilize and strategic acquirers rebuild M&A capacity. Middle-market exit activity increased modestly in late 2024, and many observers expect this trend to continue as corporate balance sheets strengthen and confidence in earnings visibility improves.

Gallant competes with numerous middle-market firms pursuing similar strategies, including Pamlico Capital, Excellere Partners, and Trivest Partners. Differentiation in this segment increasingly depends on three factors: specialized sector expertise, operational value-creation capabilities, and efficient access to proprietary deal flow.

By building dedicated technology capabilities through the Carter appointment while simultaneously strengthening operational infrastructure through Perry's promotion, Gallant addresses multiple competitive dimensions simultaneously. This integrated approach—combining sector expertise with operational excellence—represents best practice among leading middle-market firms.

The firm's Cleveland headquarters provides both advantages and challenges in this competitive landscape. While Cleveland offers lower operating costs than coastal markets and access to Midwest lower-middle-market companies often overlooked by larger firms, it requires more intentional efforts to build relationships with West Coast technology entrepreneurs and maintain visibility within the technology investment ecosystem.

Gallant Capital's leadership appointments signal a firm investing deliberately in capabilities designed to generate differentiated returns across market cycles. By adding specialized technology expertise through Carter's hiring and strengthening operational infrastructure through Perry's elevation, Gallant positions itself to compete effectively in an increasingly sophisticated middle-market landscape.

As private equity returns face pressure from elevated entry valuations and persistent exit challenges, firms that successfully combine sector specialization with operational excellence will likely outperform generalist competitors. Gallant's recent moves suggest management recognizes these dynamics and is building organizational capabilities aligned with this reality.

The firm's ability to execute on its technology investment strategy will depend on multiple factors, including deployment discipline, portfolio company execution, and broader market conditions. However, with experienced leadership now in place across key functions, Gallant enters 2025 with the infrastructure necessary to pursue its strategic objectives.

For limited partners evaluating middle-market fund commitments, Gallant's recent appointments demonstrate management's commitment to institutional development and long-term capability building—characteristics increasingly valued by sophisticated allocators. As the firm continues executing its strategy, these leadership decisions will likely influence its competitive positioning and performance for years to come.