Platinum Equity has announced the closure of its debut buyout fund on $700 million (€565 million), which the firm claims is the largest debut buyout fund to close in the US in 2003 and 2004.
Platinum is a global acquisition firm with 19 operating companies generating global revenue of $5.5 billion. Two pending acquisitions will boost total revenue to $8 billion. The company focuses on the acquisition of service-providing businesses.
The majority of Platinum's portfolio companies have been acquired through acquisitions made alongside major blue chip corporations including telephone company AT&T, technology company Lucent and global computer giant IBM. The company's stated policy is, unusually, not to acquire businesses with a predefined exit strategy, preferring to focus on entry strategy.
The fund is the first time the firm has used limited partners to help fund its acquisitions. Previously, the firm has used profits made by earlier buyouts. The names of the limited partners have not been disclosed.
Commenting on the fund close, Tom Gores, chairman and chief executive officer of Platinum, said in a statement: “We are very pleased to receive such strong response from investors who understand our investment model and our vision.”
Recent acquisitions for the firm include the cash-for-stock transaction to acquire IT solutions provider CompuCom Systems for $254 million. In May, platinum also announced a definitive agreement to acquire DyStar, a global manufacturer of textile and fashion dyes.
The firm was founded in 1995 and was ranked 34 on Forbes Largest Private Companies List in the US in 2003.