Platinum Equity has announced the completion of its fundraising for the Platinum Equity Small Cap Fund II, L.P., targeting investment opportunities in the lower middle market.
The fund surpassed its original target of $1.75bn, ultimately securing $2.28bn in commitments.
This capital raise follows the closure of Platinum Equity’s flagship fund, Platinum Equity Capital Partners VI, in 2024 with $12.4bn in commitments.
According to Platinum Equity, Small Cap Fund II will utilise its mergers, acquisitions, and operations (M&A&O) strategy.
The fund will combine the firm’s investment expertise with operational capabilities. This approach is executed by a team focused on the lower middle market, established over 10 years ago as the firm shifted its flagship funds towards larger deals.
The team comprises more than 40 professionals based in North America and Europe. It specialises in transactions involving founder- or family-owned businesses, complex corporate divestitures, public-to-private transitions, and diverse acquisitions from private sellers.
Recent acquisitions under this strategy include R&B Wholesale Distributors, Italian pesto producer Polli, and HVAC/R distributors Global and MARS.
Since launching its funds business more than two decades ago, Platinum Equity has raised over $47bnin equity commitments from institutional investors. This latest fund is part of a broader effort by the firm to expand its focus within the lower middle market segment.
Legal guidance for Small Cap Fund II was provided by Simpson Thacher & Bartlett.
Platinum Equity was founded by Tom Gores in 1995 and has grown into a global investment firm with approximately $50bn in assets under management.
The firm operates around 60 companies worldwide, specialising in mergers, acquisitions, and operations across sectors. These include manufacturing, distribution, logistics, transportation, metals services, equipment rental, media and entertainment, technology, and telecommunications.
Over nearly 30 years, Platinum Equity has completed more than 500 acquisitions.
Gores said: “We’ve built a powerful lower-middle market franchise that draws on three decades of experience and allows us to create value across the full spectrum of investment opportunities.
“The team has deep roots and tremendous momentum, and the overwhelming response to our latest fund is a testament to that.”
