Platinum Equity said Tuesday that it has closed $3.75 billion for its third fund, which focuses on investing in businesses that can “benefit from Platinum’s operational expertise.” Simpson Thacher & Bartlett was Platinum’s fund counsel while Park Hill Group served as placement adviser. Headquartered in Los Angeles, Platinum Equity is a firm that specializes in the merger and acquisition of companies.
LOS ANGELES, CA–(Marketwired – September 03, 2013) – Platinum Equity today announced the closing of Platinum Equity Capital Partners III, a buyout fund focused on investing in businesses that can benefit from Platinum’s operational expertise.
The fund closed on its target size of $3,750,000,000 in capital commitments. It is the successor to a $2,750,000,000 fund that closed in 2008 and a $700,000,000 fund that closed in 2004. Prior to the first fund, Platinum invested more than $525,000,000 in founders capital.
“We are excited about the continued support for our firm’s growth and its future,” said Tom Gores, founder and chief executive officer of Platinum Equity. “Our job will be to continue to earn the trust and confidence of our partners. Our approach to investing and operating in the future will very much entail the same fundamentals that helped create our success.”
Fund III will utilize Platinum’s core M&A&O® strategy, focused on acquiring businesses that need operational support to realize their full potential and can benefit from Platinum’s extensive in-house capabilities and expertise in transition, integration and operations.
Investors in the new fund include a diverse cross-section of public and private pension funds, sovereign wealth funds, financial institutions, endowments and foundations and other institutional investors in North America, Europe, Australia, Asia and the Middle East.
“We are very grateful for the support from investors and very excited about the investment opportunities for Fund III,” said Mark Barnhill, the Platinum Equity partner responsible for managing investor relations and raising investment capital.
“We received commitments from longtime partners who have been investing with Platinum for a decade, and from new partners who embraced the firm’s disciplined, value-oriented strategy and consistent track record,” Mr. Barnhill said. “In a difficult market where many investors are reducing the number of funds in their portfolios, those elements strongly resonated with investors.”
Platinum’s current portfolio comprises more than 30 operating companies in a broad array of markets, including information technology, telecommunications, transportation and logistics, manufacturing, steel and metals services, automotive products and media and entertainment.
The firm’s companies include BWAY, a North American manufacturer of rigid packaging containers; Neovia Logistics, a global integrated logistics provider; Chassix, a global manufacturer of automotive chassis and powertrain components; American Commercial Lines, a manufacturer and operator of cargo barges on the U.S inland waterways; and Palace Sports & Entertainment, a concert and sports business whose assets include the NBA’s Detroit Pistons.
Pending transactions include acquisitions from two large corporations that are divesting non-core units: CBS Corporation, which is selling its CBS Outdoor International unit, and Emerson, which is selling its embedded computing and power business.
Simpson Thacher & Bartlett is Platinum’s fund counsel and was legal adviser on the capital raising campaign. Park Hill Group was placement adviser.
About Platinum Equity
Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed more than 150 acquisitions.