Platinum Equity Achieves Major Fundraising Milestone
Platinum Equity Completes Significant Fundraising
Platinum Equity has recently wrapped up a successful capital raising effort for its new investment vehicle, the Platinum Equity Small Cap Fund II, L.P. This fund directs its focus towards investment opportunities in the lower middle market, a sector that promises significant potential.
Exceeding its initial goals, the fund secured $2.28 billion in commitments, surpassing its target of $1.75 billion. This remarkable achievement underscores the firm’s effectiveness in attracting institutional investors seeking high-potential investment opportunities.
Strategic Investment Approach
The strategy employed by Platinum Equity is rooted in its specialized M&A&O approach, which merges investment knowledge with operational expertise. This methodology is put into action by a dedicated team that focuses solely on lower middle market investments, a segment of the market that has become increasingly important as the firm’s larger flagship funds have moved to larger deals over the years.
Tom Gores, the Chairman and CEO who founded Platinum Equity in 1995, shared, "We have built a powerful lower-middle market franchise that draws on three decades of experience and allows us to create value across a range of investment opportunities." His confidence in the team and its capabilities is reflected in the overwhelming investor response to the latest fund.
Expert Team Driving Growth
Platinum Equity’s lower middle market investment team consists of over 40 M&A and operations professionals based in North America and Europe. The group has honed its experience in handling diverse transactions, including working with founder- or family-owned businesses, navigating complex corporate divestitures, and facilitating public-to-private transitions.
Notable recent acquisitions include R&B Wholesale Distributors, an established home appliance distributor, Italian pesto manufacturer Polli, and prominent HVAC/R distributors like Global and MARS. These acquisitions underline the firm’s capacity to identify and integrate high-quality businesses into its portfolio.
Building on Previous Success
Small Cap II represents Platinum Equity's second successful capital raise in consecutive years, following the closure of the flagship Platinum Equity Capital Partners VI in the previous year, which garnered $12.4 billion in commitments. Over its existence, Platinum Equity has amassed more than $47 billion in equity commitments from institutional investors, showcasing its strong reputation in the investment landscape.
The firm’s growth trajectory can be attributed to its focused approach on acquiring and managing businesses across various sectors including manufacturing, entertainment, technology, and others. Each acquisition is crafted to enhance operational capabilities and create lasting value.
Commitment to Excellence
Simpson Thacher & Bartlett LLP serves as the legal advisor and fund counsel for Small Cap II. This collaboration further strengthens the operational framework that facilitates the firm's ambitious investment strategies.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm commanding approximately $50 billion in assets under management. The company's portfolio includes around 60 operating companies across multiple sectors worldwide. The firm specializes in mergers, acquisitions, and operations—a strategy trademarked as M&A&O. Over three decades, Platinum Equity has successfully completed more than 500 acquisitions, demonstrating its operational prowess and commitment to enhancing enterprise value.
Contact Information:
Dan Whelan
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Frequently Asked Questions
What is the focus of Platinum Equity Small Cap Fund II?
The fund focuses on investment opportunities within the lower middle market.
How much capital did Platinum Equity raise for its new fund?
The firm raised $2.28 billion for the Small Cap Fund II, exceeding its initial target of $1.75 billion.
What is the core strategy employed by Platinum Equity?
Platinum Equity utilizes a unique M&A&O strategy that combines investment expertise with operational capabilities to enhance value across its portfolio.
How many acquisitions has Platinum Equity completed?
Platinum Equity has successfully completed over 500 acquisitions since its inception.
Who serves as legal counsel for Platinum Equity Small Cap Fund II?
Simpson Thacher & Bartlett LLP is the legal adviser and fund counsel for Small Cap Fund II.
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