Gemba Private Equity heads for EUR 25m close for debut fund

Iñaki Miguel
27 May 2022

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Spanish sponsor Gemba Private Equity SCR-Pyme is aiming for a EUR 25m final close for its debut private equity fund at the end of this year, investment committee member David Gonzalvo told Unquote.

The fund has held a first close on around EUR 12m and has made two acquisitions so far, Gonzalvo said.

The Barcelona-based firm is interested in approaches by potential investors attracted to the Spanish small cap space, he said. The GP works with Pedrosa Lagos as legal adviser for the fundraise, he added.

Among the current investors are Spanish family offices, private investors and the Alcaraz brothers, who sold car rental company Goldcar in 2014.

Gemba Private Equity is managed by Navis Capital, with a team of six people, Gonzalvo said.

Gemba invests in Spain-based companies with EUR 1m-3m in EBITDA. The fund has a multi-sectorial investment philosophy but with a preference for industrial, services and distribution as principal sectors, he added.

The fund could do one or two more deals this year and intends to build a portfolio of 12 to 15 companies, Gonzalvo said. It will have a total investment capacity of EUR 40m-50m, as it usually finances half of each deal with debt. "Our average ticket is of around EUR 3m per deal," he added.

Gemba Private Equity has so far acquired kitchen hoods manufacturer Frecan and vitreous enamel steel manufacturer Vitrispan, Gonzalvo said. Both deals were closed in April 2022. The fund worked with ETL for due diligence and with HF Legal as its legal advisor for both deals, he added.