January 12, 2023
Key Takeaways
1. Small buyout investments are an important component to endowment-style investing and have generated excess returns for investors over the past twenty years.
2. We believe small buyout markets are less dependent on macroeconomic forces like interest rates or the direction of public equity markets making them a diversifying source of absolute returns.
3. Investing in small buyouts takes a unique skillset and a team with deep networks and insight in the space – not only to identify opportunities, but also to offer support to managers as a business and strategic partner.
The firm announced the final close of GEM Seed & Micro Venture Fund, LP. The Fund closed with $82 million in commitments—exceeding its hard cap and fundraising target—and marks GEM's first vehicle focused specifically on seed- and micro-stage venture capital.
Kelly Barofsky, a Managing Director in GEM’s Investment Research Group, spoke with PitchBook about the continued momentum behind independent sponsors and why deal-by-deal structures can create strong alignment between sponsors and investors.
Head of Venture Capital, Kate Simpson, joined the Swimming with Allocators podcast to discuss how GEM constructs its venture portfolio, why the market has bifurcated, and where disciplined manager selection creates the most compelling opportunities.
Let’s start a conversation about how we can help.
