Charterhouse Capital Partners announces investment in Telio

June 14, 2021

Charterhouse Capital Partners LLP (“Charterhouse”), one of the longest established private equity firms operating in Europe, today announces that it has entered into an agreement to invest in Telio Management GmbH (“Telio” or “the Company”), the European leader in the provision of technology and communication services to correctional facilities.

Founded in Germany in 1998 and headquartered in Hamburg, Telio is a full service provider of essential telephony, video visitation solutions and jamming technology to correctional facilities. Telio delivers critical infrastructure to the public sector, providing its unique solutions to 21 markets globally and serving over 700 correctional facilities across EMEA and Australia.

Telio is a provider of mission critical services in a niche and non-cyclical market, benefiting from high barriers to entry due to long-term contracts, strong revenue visibility and structural trends. The market provides multiple levers for growth through jamming technology roll-out, in-cell transition, geographic expansion, and the introduction of new services such as digital & multimedia.

Telio’s services are purposefully designed to be affordable, and to enhance inmate and guard welfare whilst supporting inmate rehabilitation and reintegration into society. Numerous studies have shown that inmates provided with the ability to sustain family relationships during custodial sentences have markedly lower reoffending rates, while those that engage in distance learning programmes are more likely to find employment in the first 12 months after release. Telio only operates in markets with justice systems based on the principles of dignity and human rights, and employs a proprietary screening methodology when assessing new markets, incorporating human rights risks, corruption risks and ESG scoring.

Charterhouse has built a strong relationship with the Company’s management team and will work closely with them to further expand Telio’s offering and international footprint, continuing its transformation into a global leader in technology and communication services for correctional facilities.
Charterhouse is acquiring Telio from Deutsche Beteiligungs AG ("DBAG") a listed private equity firm headquartered in Frankfurt, Germany. As part of the transaction, DBAG will reinvest a part of its proceeds and retain a minority stake in the business.

Oliver Drews, Chairman of Telio, commented:
“We are delighted to be partnering with Charterhouse as we embark on the next stage of Telio’s growth. Charterhouse will contribute significant international expansion and transaction expertise that will support the execution of our strategy. We are confident that Charterhouse is the right partner to help Telio become a global powerhouse in our chosen markets.”

Carsten Hagenbucher, Partner at Charterhouse, said:
“Telio is a deserved leader in its markets, providing proprietary services that form vital infrastructure for its clients. With its strong focus on safety, wellbeing and rehabilitation, Telio is well positioned to
grow internationally and bring its services to new territories. We are pleased to be investing in the Company at an exciting stage in its journey and look forward to working with Oliver and his team to support Telio’s continued growth.”