Platinum closes Fund III on $3.75bn

The Tom Gores-led firm launched its third turnaround and special situations fund in 2011.

Platinum Equity has held a final close for its third fund on its $3.75 billion target, according to a statement from the firm. 

About 15 percent of Fund III's capital has already been invested, the firm told Private Equity International. Additional investments will be made in underperforming companies in North America and Western Europe.

Platinum launched the vehicle in 2011 and received commitments from limited partners in North America, Europe, Australia, Asia and the Middle East.  The firm held a first close on 1 March 2012, though a pre-close was held at the end of December 2011 for a few investors who needed to commit from expiring 2011 allocations, the firm said.

“We received commitments from longtime partners who have been investing with Platinum for a decade, and from new partners”, Mark Barnhill, a partner at Platinum, said in the statement.

Limited partners in the fund include the Florida State Board of Administration, which committed $200 million, the New York City Employees’ Retirement System, which committed $100 million and the Pennsylvania State Employees’ Retirement System, which committed $50 million.

Park Hill Group was Platinum’s placement advisor and Simpson Thacher & Bartlett was the firm’s fund counsel and legal advisor.

Platinum’s prior fund closed on $2.75 billion in 2008 and its debut fund raised $700 million in 2004. As of January 2012, Fund II had a generated net investment return rate of 9.1 percent and Fund I’s IRR was 62.8 percent, according to documents from PSERS. 

Gores: Platinum CEO and founder

Platinum’s portfolio includes investments in the information technology, telecommunications, transportation and media sectors. Its companies include rigid packaging manufacturer BWAY and Palace Sports & Entertainment, which owns the National Basketball Association’s Detroit Pistons. The firm has made more than 145 acquisitions as of 5 June. 

Platinum was founded in 1995 and operates out of its headquarters in Los Angeles. It is led by chief executive officer Tom Gores, chief financial officer Mary Ann Sigler and 11 other partners, according to the firm’s website.