Platinum Equity said March 13 that it closed its latest global buyout fund, Platinum Equity Capital Partners IV, on $6.5 billion. More than 200 limited partners from 28 countries invested in the fund. Platinum Equity’s prior fund collected $3.75 billion in 2012. Platinum invests in complex carve-outs from Fortune 500 companies; public to private transitions; and specialty acquisitions from a variety of private sellers. Simpson Thacher & Bartlett LLP was legal advisor.
Platinum Equity Announces Closing of $6.5 Billion Fund
Firm’s Signature M&A&O(R) Strategy Drives High Demand for Its Fourth Fund
LOS ANGELES, CA–(Marketwired – March 13, 2017) – Platinum Equity announced today the close of Platinum Equity Capital Partners IV, a $6,500,000,000 global buyout fund.
The fund was heavily oversubscribed, driven by the success of Platinum’s highly specialized M&A&O® strategy that integrates investment expertise with deep operational capability and resources.
“We are grateful to investors for believing in Platinum, supporting our growth and trusting us to invest their money wisely,” said Tom Gores, chairman and chief executive officer of Platinum Equity.
“Our job now is to continue earning that trust by deploying this capital effectively,” Mr. Gores said. “We have the capacity, the capability and the capital necessary to handle transactions of any size and complexity anywhere in the world.”
Mark Barnhill, the Platinum Equity partner responsible for leading the capital raise, said Fund IV generated high demand from institutional investors around the world. More than 200 limited partners from 28 countries invested in the fund.
“Investors in this cycle were very focused on operations value-add and the ability to deliver downside protection alongside great returns,” Mr. Barnhill said. “Our capabilities and track record matched perfectly with that demand.”
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 now 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 for 2016 in a recent 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.
Recent investments include the November 2016 acquisition of Emerson Network Power, a multibillion-dollar unit with operations around the world, in a transaction valued in excess of $4 billion. The business has been successfully established as a standalone company and is now driving growth and innovation under the new name Vertiv.
Mr. Gores said Fund IV will deliver more of the same, as Platinum continues a growth trajectory that now includes limited partners on five continents and operating companies on all seven continents.
“As much as we’ve grown, we have maintained our investing philosophy surrounded by great people who respect execution,” Mr. Gores said. “Times may change and situations may change, but our belief system and approach will remain the same. We will maintain, as we always have, our core investing and operating principles going forward.”
Simpson Thacher & Bartlett LLP is Platinum’s fund counsel and legal adviser for Fund IV.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with a portfolio of approximately 30 operating companies that serve customers around the world. 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. Since its founding, Platinum Equity has completed more than 185 acquisitions.