Platinum Equity Raises $6.5B For Fourth Global Buyout Fund

Mar 13 2017 | 6:17pm ET

Global private equity company Platinum Equity has raised $6.5 billion in capital commitments for its fourth buyout fund.

The new fund, named Platinum Equity Capital Partners IV, raised capital from more than 200 limited partners from nearly thirty nations, the company said in a statement. The fund will continue Platinum’s focus on large, complex carve-outs, public to private transitions, and specialty acquisitions characterized by investments in both equity and credit instruments.

Platinum Equity raised $700 million for its first fund in 2004, followed by Fund II with $2.75 billion in 2007, and closed Fund III with $3.75 billion in 2012. Simpson Thacher & Bartlett LLP acted as fund counsel and legal adviser for Fund IV.

"We are grateful to investors for believing in Platinum, supporting our growth and trusting us to invest their money wisely," said Tom Gores, founder and CEO of Platinum Equity, in the statement. "Our job now is to continue earning that trust by deploying this capital effectively. We have the capacity, the capability and the capital necessary to handle transactions of any size and complexity anywhere in the world."

"Investors in this cycle were very focused on operations value-add and the ability to deliver downside protection alongside great returns," added partner Mark Barnhill, the Platinum Equity partner Mr. Barnhill said. "Our capabilities and track record matched perfectly with that demand." 

Los Angeles-based Platinum Equity was founded by Gores in 1995. The firm now counts limited partners on five continents and operating companies on all seven. The firm focuses on 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.

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