GEM has held a final, above-target, and oversubscribed close of GEM IS Fund LP (Fund IS), the firm’s inaugural fund dedicated to independent sponsors, with $450 million of capital commitments. The new fund’s original target was $400 million.
Fund IS as a formalization of a strategy GEM has pursued for more than a decade, focusing on pre-fund sponsors raising capital on a deal-by-deal basis prior to establishing a first-time institutional fund.
GEM (Global Endowment Management) provides institutional asset management services to endowments, foundations, sovereign entities, and family offices. The firm operates as an outsourced CIO and provides customized portfolio management and advisory services tied to its customers investment objectives and risk tolerances. GEM also supports independent sponsors through a dedicated investment platform. Stephanie Lynch, a co-founder and managing partner of GEM, is a former CIO of The Duke Endowment. GEM, founded in 2007, has approximately $12 billion in assets under management and is headquartered in Charlotte, North Carolina.
Limited partners in Fund IS include endowments, foundations, insurance companies, healthcare institutions, and family offices. “We are grateful for the overwhelming support we received from limited partners,” said Jay Ripley, the head of investments at GEM. “This successful fundraise highlights our team’s differentiated approach to identifying pre-fund managers who have the potential to deliver outsized returns.”
“We continue to believe that the most talented independent sponsors are in the ‘sweet spot’ of their careers, with the training and networks necessary to identify, finance, and grow a portfolio company,” said Kelly Barofsky, a director in GEM’s investment research group. “Our job is to identify those sponsors early and to build lasting partnerships. This Fund enhances our ability to support independent sponsors in a more meaningful way, offering them the speed and certainty of capital required to execute on compelling investment opportunities in the lower middle market.”
“As independent sponsors continue to play a vital role in the private equity landscape, we are excited to deepen our commitment to this space with the closing of this inaugural vintage. If you are an independent sponsor or are considering launching your own firm, please reach out – we would love to be your partner for the journey,” added Mr. Ripley.
Aqueduct Capital Group was the placement agent for Fund IS and Ropes & Gray provided legal services.
© 2025 Private Equity Professional | April 16, 2025
