GEM Realty Capital is back on the fundraising trail, seeking capital for its latest value-added real estate vehicle.
Documents from the US Securities and Exchange Commission, as well as sources familiar with the matter, have revealed that the Chicago-based fund manager is targeting $750 million for GEM Realty Fund V. Through the diversified commingled vehicle, the firm is looking to invest in a range of properties and distressed debt in the US. Representatives from GEM Realty declined to comment.
GEM Realty is seeking contributions from endowments, foundations, pension funds and insurance companies. Previous investors include TIAA-CREF, the Montana Board of Investments and the University of Texas Investment Management. PERE understands that the firm is not using a placement agent.
The previous fund in the series, Gem Realty Fund IV, closed on $550 million in equity commitments in 2010, according to PERE Connect. GEM Realty is believed to be wrapping up the investment phase of that fund, which is believed to have a similar strategy to its new fund. Meanwhile, GEM Realty Fund III, which invested in properties as well as operating companies, closed on $360 million in 2006.
Founded in 1994, GEM Realty is a real estate investment firm that operates through two lines of business, GEM Realty Properties and GEM Realty Securities. Through GEM Realty Properties, the firm invests directly in private market real estate assets. Through GEM Realty Securities, the firm invests in publicly traded real estate securities, which include REITs, real estate operating companies and homebuilders.