GEMS eyes second closing of $300m fund

The Hong Kong-based private equity firm is aiming for a spring second closing of its third fund, GEMS Fund III.

Hong Kong-based private equity firm General Enterprise Management Services (GEMS) is aiming to hold a second close of its third fund this spring.

GEMS launched the marketing for GEMS Fund III in early 2005 and held a first close in last September after securing $140 million (€113 million) in total capital commitments, Kevin Yip, a senior partner at GEMS, told PEO.

Yip said that the firm is targeting a second closing of the vehicle this spring, but it has not decided if it will be a second and final close. The fund has a target of $300 million, he added.

GEMS has already invested part of Fund III in two deals, the most recent of which was a $20 million purchase of convertible debentures in Thailand’s Property Perfect, a mid-income housing developer. If GEMS converted its debentures to shares, which is only possible after eighteen months, it will hold a 14 percent stake in Property Perfect, said Yip.

GEMS Fund III also invested $35 million in Omni Whittington, an insurance service business headquartered in Singapore, added Yip.

Yip said that Greater China and Japan are key areas in GEMS’s investment strategy for its third fund, although deals currently being explored cover Thailand and Indonesia as well.

GEMS manages three funds with total assets of $670 million.