St. Louis Business Journal: LA firm backs St. Louis-based VeloSource, fueling expansion of medical staffing services

Story Highlights

• VeloSource receives strategic investment from Interlock Equity for expansion.

• Jeff Schaal becomes CEO as Patrick Donovan transitions to board.

• VeloSource provides locum tenens staffing for healthcare organizations nationwide.

VeloSource, a growing provider of recruiting and temporary staffing services for the health care industry, has received what it calls a "strategic growth investment" from a Los Angeles-based private equity firm.

Interlock Equity made the investment, the amount of which wasn't disclosed. The funding will allow VeloSource to speed up its expansion, strengthen its specialty expertise and advance its technology platform, officials said last week in a press release.

VeloSource said it provides so-called "locum tenens" staffing services to health care organizations nationwide, including hospitals, health systems, universities and physician groups, placing physicians and advanced practitioners. Founded in 2015 by partners Jeff Schaal and Patrick Donovan, VeloSource said last year it had 53 local employees and annual revenue of $46 million, according to the Business Journal's Best Places to Work Awards for 2024, in which the company was a finalist.

With the investment, Donovan, previously CEO, remains a partner and will transition to a position on VeloSource's board, and Schaal, previously president, has become CEO, according to the release. In fall 2023, VeloSource said it nearly doubled its St. Louis headquarters, to 11,000 square feet, with a move from 20 S. Sarah St. in the Cortex Innovation District to 12444 Powerscourt Drive in unincorporated west St. Louis County, near Des Peres. At the time the company said it needed the larger space to accommodate its growing staff.

"Jeff and I are incredibly excited to join forces with Interlock Equity to bring outcome-driven Locum Tenens to the health care industry," Donovan said in a statement. "Interlock offers key strategic support and client relationship synergy to rapidly foster growth in a competitive landscape."

"Partnering with Interlock represents an exciting new chapter for our company. Their commitment to innovation and long-term growth reflects our own values, and we look forward to what we can achieve together," Schaal said in a statement. In a post this week on LinkedIn about Interlock's investment in VeloSource, Schaal thanked the staffing firm's employees and investors, as well as Brentwood-based investment bank Nolan & Associates. A spokesman didn't immediately respond to a question about other VeloSource investors.

Rob Zielinski, managing director at Interlock, said in the release, "VeloSource is addressing one of the most urgent challenges in health care – bridging persistent provider shortages with highly qualified locum tenens professionals" and that it's "uniquely positioned to capture strong industry tailwinds." Interlock Equity, founded in 2021, says it invests in North American lower middle-market companies that are in knowledge-based, people-driven sectors, with a focus on business-to-business and health care services. In addition to its Los Angeles base, it has an office in suburban Chicago.

By Diana Barr – Associate Editor, St. Louis Business Journal

Sep 17, 2025