Private Equity FunCast Software Holdcos in Australia
Jan 16, 2026
Scott Middleton, CEO and founder of Terem Capital, dives into the world of Australian software holdcos. He shares his journey from selling a mobile game at 14 to successfully spinning out enterprise software. Scott explains different holdco models and details Terem's accumulator strategy for acquiring B2B tech firms. He highlights the Australian market's potential, emphasizing patience in management and M&A. With a keen focus on automation and operational efficiency, he reveals his criteria for selecting tech targets and near-term acquisition plans.
AI Snips
Chapters
Transcript
Episode notes
Four Holdco Models
- Holdco is simply a company that owns multiple companies, but several repeatable models exist.
- Models include roll-up, transformer, accumulator, and diversified conglomerate with different operational focus.
Buy Small Tech Businesses With Teams
- Target software or tech-driven businesses with $1–10M revenue and an existing team you can scale.
- Provide centralized finance and HR from the holdco to supply discipline and enable operator-focused CEOs.
Insist On Dedicated Company Leaders
- Require a committed day-to-day leader for each portfolio company and avoid long-term split-focus CEOs.
- Be prepared to step into interim operational roles when needed but prioritize dedicated managers.