Platinum Equity held a final close on the $1.5 billion hard cap on its debut small-cap fund. Platinum Equity Small Cap Fund pursues the same type of operations-focused investments as the firm’s flagship funds. The pool will complement Platinum’s fourth pool that closed on $6.5 billion last year.
Platinum Equity announced today the close of capital raising for Platinum Equity Small Cap Fund, L.P, the firm’s inaugural fund focused exclusively on investment opportunities in the lower middle market.
The fund was oversubscribed and held a single closing at a hard cap of $1.5 billion. It will focus exclusively on the lower middle market, complementing the firm’s flagship $6.5 billion Platinum Equity Capital Partners IV, which is focused on larger transactions.
The small cap fund will pursue the same type of operations-focused investments as the larger fund.
“We have the ability to create value from one end of the spectrum to the other,” said Tom Gores, chairman and chief executive office of Platinum Equity. “Our core fund is moving upstream into larger deals, but we don’t want to lose sight of smaller transactions where we can create real value. So it made sense for us to launch a lower middle market fund.
“The successful closing of that new fund reflects a high degree of investor confidence in Platinum Equity,” Mr. Gores said. “We are grateful for that, and mindful of the importance to execute well and deliver good returns on their behalf.”
The Small Cap Fund will employ Platinum Equity’s highly specialized M&A&O® strategy, which integrates investment expertise with deep operational capability and resources.
“Our roots in the lower middle market run deep and we have maintained a strong presence there,” said Mr. Gores.
Platinum Equity, founded by Mr. Gores in 1995, funded its initial investments with founders’ capital. The firm raised its first private equity fund in 2004, with $700 million in capital commitments. That was followed by Fund II with $2.75 billion in 2007, Fund III with $3.75 billion in 2012, and Fund IV with $6.5 billion.
Each of the previous funds has been a top performer in its respective vintage year, and Platinum Equity was ranked among the top five performing private equity firms in the world in a study by HEC Paris Business School and Dow Jones.
Platinum’s investment portfolio includes both equity and credit investments. The firm specializes in complex carve-outs from Fortune 500 companies; public to private transitions; and specialty acquisitions from a wide variety of private sellers.
Simpson Thacher & Bartlett LLP is Platinum’s fund counsel and legal adviser for the Small Cap Fund.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with $13 billion of assets under management and a portfolio of more than 30 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion global buyout fund. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 23 years Platinum Equity has completed more than 200 acquisitions.