Platinum Equity has closed Platinum Equity Capital Partners IV, a USD6.5 billion global buyout fund.
The fund was heavily oversubscribed, driven by the success of Platinum's 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," says Tom Gores, chairman and chief executive officer of Platinum Equity. "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."
Mark Barnhill, the Platinum Equity partner responsible for leading the capital raise, says 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," says Barnhill. "Our capabilities and track record matched perfectly with that demand."
Platinum Equity, founded by Gores in 1995, funded its initial investments with founders' capital. The firm raised its first private equity fund in 2004, with USD700 million in capital commitments. That was followed by Fund II with USD2.75 billion in 2007, Fund III with USD3.75 billion in 2012, and now Fund IV with USD6.5 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 specialises 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 USD4 billion. The business has been successfully established as a standalone company and is now driving growth and innovation under the new name Vertiv.
Gores says 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," says Gores. "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."
