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Platinum Equity closes USD3.75bn PE fund

Platinum Equity has closed Platinum Equity Capital Partners III, a buyout fund focused on investing in businesses that can benefit from Platinum’s operational expertise.

 
The fund closed on its target size of USD3,750,000,000 in capital commitments. It is the successor to a USD2,750,000,000 fund that closed in 2008 and a USD700,000,000 fund that closed in 2004. Prior to the first fund, Platinum invested more than USD525,000,000 in founders capital.
 
"We are excited about the continued support for our firm’s growth and its future," says Tom Gores, founder and chief executive officer of Platinum Equity. "Our job will be to continue to earn the trust and confidence of our partners. Our approach to investing and operating in the future will very much entail the same fundamentals that helped create our success."
 
Fund III will use Platinum’s core M&A&O strategy, focused on acquiring businesses that need operational support to realise their full potential and can benefit from Platinum’s in-house capabilities and expertise in transition, integration and operations.
 
Investors in the new fund include a cross-section of public and private pension funds, sovereign wealth funds, financial institutions, endowments and foundations and other institutional investors in North America, Europe, Australia, Asia and the Middle East.
 
"We are very grateful for the support from investors and very excited about the investment opportunities for Fund III," says Mark Barnhill, the Platinum Equity partner responsible for managing investor relations and raising investment capital.
 
"We received commitments from longtime partners who have been investing with Platinum for a decade, and from new partners who embraced the firm’s disciplined, value-oriented strategy and consistent track record. In a difficult market where many investors are reducing the number of funds in their portfolios, those elements strongly resonated with investors."
 
Platinum’s current portfolio comprises more than 30 operating companies in a broad array of markets, including information technology, telecommunications, transportation and logistics, manufacturing, steel and metals services, automotive products and media and entertainment.
 
The firm’s companies include BWAY, a North American manufacturer of rigid packaging containers; Neovia Logistics, a logistics provider; Chassix, a manufacturer of automotive chassis and powertrain components; American Commercial Lines, a manufacturer and operator of cargo barges on the US inland waterways; and Palace Sports & Entertainment, a concert and sports business whose assets include the NBA’s Detroit Pistons.
 
Pending transactions include acquisitions from two large corporations that are divesting non-core units: CBS Corporation, which is selling its CBS Outdoor International unit, and Emerson, which is selling its embedded computing and power business.
 
Simpson Thacher & Bartlett is Platinum’s fund counsel and was legal adviser on the capital raising campaign. Park Hill Group was placement adviser.

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