BlueGem launches €500m third buyout fund

The firm expects to reach a final close in the summer of 2020.

The new vehicle will be larger than its predecessor, BlueGem II, which closed on €370m in June 2015. This second vehicle has recently exited UK-based department store Liberty in a deal valuing the business at £300m and representing a 12x return for the vendor. 

In addition, the GP raised BlueGem Secondary Fund in June 2018 in order to transfer the four remaining assets in the portfolio of its debut 2007 vehicle BlueGem I. The fund restructuring was backed by Glendower Capital, a spinout from Deutsche Bank's secondaries private equity business.

Investors
The GP expects to raise capital from European and American institutional investors for more than two thirds of the total and from family offices for the remainder. According to the GP, most of the previous investors that backed BlueGem II will re-up in the new vehicle, in addition to several new LPs that are expected to join the fundraising in the coming months.

Investments
Bluegem III will deploy equity tickets of €25-75m in buyout transactions targeting European consumer brand companies, with a focus on the UK, Ireland, France, Belgium, Denmark, Spain, Portugal and Italy. The fund has already inked its first acquisition by purchasing Italian hair care products manufacturer Pool Service in a deal that values the business at €64m.

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• BlueGem Capital Partners