Platinum Equity hits $1.5bn hard close for debut small cap fund

Platinum Equity has sealed the $1.5bn hard cap close of its debut small cap fund.

The lower mid-market fund will invest in deals too small for the firm’s $6.5bn flagship vehicle, but target the same kind of operations-focused investments, Platinum said.

Platinum chairman and CEO Tom Gores said, “We have the ability to create value from one end of the spectrum to the other. Our core fund is moving upstream into larger deals, but we don’t want to lose sight of smaller transactions where we can create real value. So, it made sense for us to launch a lower middle market fund.

“The successful closing of that new fund reflects a high degree of investor confidence in Platinum Equity. We are grateful for that, and mindful of the importance to execute well and deliver good returns on their behalf.”

The firm is understood to have begun talks with investors about the fund in the second half of last year, when it was initially said to be considering raising $750m.

That target jumped to $1bn according to investment documents filed by the Pennsylvania Public Schools Employees Retirement System in March – with the LP agreeing a hefty $200m commitment to the vehicle.

The firm has made a couple of investments into the FinTech sector this year. Earlier in the month, Platinum acquired the gift, loyalty and membership card marketing solution PLI Card for an undisclosed amount.

Its other deal in the year was an acquisition of Highway Toll Administration, which provides fleet services with a tool to complete electronic toll collection.

Platinum closed its fourth fund on its $6.5bn hard cap early last year, and previously pulled in $3.75bn for Fund III in 2012 and $2.75bn for Fund II in 2007.

Copyright © 2018 FinTech Global

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