Gemspring Capital Management has completed fundraising for two new funds with the closings of Gemspring Capital Fund III LP (Fund III), its third buyout fund, at $1.7 billion, and Gemspring Growth Solutions Fund I LP (GGS I), its first non-control investment fund, at an oversubscribed $400 million.
Fund III closed at its hard cap on all institutional limited partner commitments. Additionally, members of the Gemspring investment team – which invest in all Gemspring funds – made the largest aggregate commitment to Fund III. Limited partners in both Fund III and GGS I include pension funds, endowments, foundations, family offices, asset management firms, and financial institutions.
“We are grateful for the overwhelming support from both existing and new limited partners,” said Bret Wiener, the managing partner of Gemspring. “With fresh capital, we are well-positioned for a market environment that will likely yield an abundance of opportunities in line with our value-oriented and transformational growth investment strategy.”
Gemspring invests in companies that have revenues of up to $500 million. Sectors of interest include aerospace and defense; business and consumer services; financial and insurance services; industrial services; software and tech-enabled services; healthcare services and specialty manufacturing.
Three recent transactions closed by Gemspring include a minority investment in Chicago Switchboard, an Illinois-based provider of electrical power distribution equipment, including switchgears, switchboards, and panel boards (January 2023); the acquisition by Shrieve Chemical, a portfolio company of Gemspring since December 2019, of Chem One, a Houston-headquartered distributor of dry chemicals – copper sulfate, sodium sulfide, and zinc sulfate – that are used in water treatment, animal feed, and oil and gas applications (January 2023); and Amplix, a Massachusetts-headquartered provider of technology advisory services and software that was formed through mergers of ROI Communications, Blue Front Technology Group, and allConnex (December 2022).
Gemspring’s earlier buyout fund, Gemspring Capital Fund II LP, closed with $785 million of capital in March 2020, and its first buyout fund closed with $355 million of capital in November 2016. Since its founding in 2015, Gemspring has completed 25 platform investments and 41 add-on acquisitions.
Kirkland & Ellis provided legal services to Gemspring for the fundraising of both Fund III and GGS I.
With the closing of its two new funds, Westport, Connecticut-based Gemspring now has $3.4 billion of capital under management.
© 2023 Private Equity Professional | January 31, 2023
