Platinum Equity's Recent Fundraising Breakthrough in Market
Platinum Equity Achieves Significant Capital Raised
Recently, Platinum Equity announced the successful completion of capital raising for Platinum Equity Small Cap Fund II, L.P. This fund primarily targets investment opportunities within the lower middle market. Impressively, the fund exceeded its original target of $1.75 billion, ultimately closing with commitments totaling $2.28 billion.
Investment Strategy and Team Specialization
This new fund implements Platinum Equity's unique M&A&O strategy, which seamlessly combines investment expertise with a solid operational foundation. This strategy is executed by a dedicated lower middle market investment team that has been established for over ten years, focusing increasingly on this sector as other flagship funds have shifted toward larger transactions.
Building a Strong Franchise
According to Platinum Equity Chairman and CEO Tom Gores, the firm has cultivated a strong lower-middle market presence drawn from three decades of investment experience. Gores noted, "The team's deep roots and notable momentum reflect the overwhelming interest we've received for our latest fund." This response highlights the team's effectiveness and the firm's robust market position.
Team Composition and Recent Transactions
Platinum Equity's lower middle market team includes over 40 M&A and operations professionals spread across North America and Europe. This group specializes in transactions involving founder- and family-owned businesses, as well as complex corporate divestitures and acquisitions from a variety of private sellers. Recent noteworthy acquisitions include R&B Wholesale Distributors, an Italian pesto maker, and HVAC/R distributors.
A Proven Track Record
The Small Cap Fund II marks Platinum Equity's second successful capital raising endeavor in consecutive years. Notably, the flagship Platinum Equity Capital Partners VI was closed successfully, securing $12.4 billion in capital commitments in the previous year. To date, the firm has raised over $47 billion in equity commitments from institutional investors since it began its fundraising activities.
Legal Representation and Fund Overview
Simpson Thacher & Bartlett LLP provided counsel and legal advice for the Small Cap Fund II. This signifies the firm's methodical approach and dedication to ensuring compliance during the fundraising process.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity operates as a global investment firm with approximately $50 billion in assets under management. The firm oversees a diverse portfolio of around 60 operating companies that serve clients worldwide. Platinum Equity specializes in mergers, acquisitions, and operations, implementing a trademarked strategy known as M&A&O. The firm has executed more than 500 acquisitions across a myriad of industries spanning from manufacturing and distribution to technology and telecommunications.
Contact Information
For inquiries, please contact Dan Whelan at dwhelan@platinumequity.com.
Frequently Asked Questions
What is Platinum Equity's recent fundraising achievement?
Platinum Equity successfully closed its Small Cap Fund II at $2.28 billion, surpassing its target of $1.75 billion.
What is the focus of the Small Cap Fund II?
The fund primarily targets investment opportunities in the lower middle market, seeking to leverage Platinum Equity's extensive experience.
How many professionals are on the lower middle market team?
The team consists of over 40 M&A and operations professionals dedicated to navigating complex market transactions.
What is the significance of the M&A&O strategy?
It reflects Platinum Equity's commitment to combining investment expertise with operational capabilities, enhancing value creation across investments.
Who can I contact for more information about Platinum Equity?
Inquiries can be directed to Dan Whelan via email at dwhelan@platinumequity.com.
About The Author
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