BlueGem mulls GP-led process on first fund – exclusive

The firm, founded by an ex-Merrill Lynch Global Private Equity executive, is exploring a process involving its 2006-vintage fund which is heavily exposed to the UK consumer sector.

BlueGem Capital Partners, a mid-market buyout firm focused on western Europe, is exploring a GP-led process on its 2006-vintage fund, Secondaries Investor has learned.

LPs in the BlueGem Capital Partners fund will be offered the choice to stay or sell their stakes to a secondaries buyer, according to two sources with knowledge of the deal.

Park Hill is running the process, the sources said. The exact stage of the process is not clear.

The fund, which is in carry, has around €70 million in remaining net asset value, Secondaries Investor understands. Its remaining assets are highly exposed to the UK consumer sector and a majority of the NAV is held in two assets: UK wine wholesaler Enotria & Coe and Private Clinic Group, a UK-based chain of cosmetic surgeons, one of the sources said.

BlueGem Capital Partners held its final close on its €200 million target in 2007, according to PEI data. Investors in the fund include SwanCap Partners, Schroder Adveq and Italian asset manager Fiduciaria Orefici Group.

The firm’s follow-up fund, BlueGem Capital Partners II, held its final close on €370 million in 2015, below its target of €400 million, according to PEI data. Its portfolio companies include London department store Liberty.

BlueGem makes investments of between €20 million and €75 million in western European companies with an enterprise value between €50 million and €300 million, with a particular emphasis on the consumer sector, according to its website.

The firm was founded by Marco Capello, a former managing director of Merrill Lynch Global Private Equity.

BlueGem and Park Hill did not respond to requests for comment.

– Adam Le contributed to this report.