GEM, an independent investment management firm, announced the final close of GEM Independent Sponsors Fund II (IS Fund II) at its $685 million hard cap.
The fund attracted commitments from foundations, healthcare institutions, insurance companies, university endowments and GEM-affiliated OCIO clients.
IS Fund II invests alongside independent sponsors in the U.S. lower middle market, building on GEM’s experience as an institutional capital provider to the segment.
The close follows GEM’s inaugural $450 million independent sponsors fundraise in 2025.
GEM has evaluated more than 1,200 opportunities and completed 87investments alongside more than 30 independent sponsors.
Several sponsors backed by GEM have since graduated to committed fundstructures, demonstrating the potential of identifying and supporting emerging investment platformsearly in their lifecycle.
Jay Ripley, Head of Investments, highlighted the firm’s extensive sponsornetwork, sourcing capabilities and selective investment approach.
– Kelly Barofsky, CFA, Managing Director and co-leader of the independent sponsor program, emphasized the growing market and GEM’s focus on long-term sponsor relationships.
