Platinum Equity plans to raise $5.5 billion for its fourth fund, Platinum Equity Capital Partners IV, according to a presentation by LP Capital Advisors to the New Mexico State Investment Council from July.
Fund IV launched in May and has received a $100 million commitment from New Mexico State Investment Council, according to the presentation.
The fund will follow the same strategy as the firm's prior funds, acquiring control positions in companies requiring operational turnarounds or companies in complex situations, such as corporate spin-offs of non-core divisions or bankruptcy reorganisation. The fund will pursue investments across a range of industries globally, though primarily focused in the United States, according to the presentation.
Los Angeles-based Platinum Equity is expected to make a commitment to the fund equal to the lesser of 5 percent of committed capital or $225 million.
The target is larger than Platinum Equity Capital Partners III, which closed on target at $3.75 billion in 2013. Platinum Equity Capital Partners II held a close on $2.75 billion in 2008, above its $1.5 billion target. It had a net internal rate of return of 15.1 percent and a 1.73x multiple as of 31 March, according to the New Mexico Investment Council. Platinum Equity also recently completed the sale of crane provider Maxim Crane Works to Apollo Global Management , it said on Monday. Platinum purchased the company in 2008 through its second fund.
The New Mexico Investment Council is an existing investor in Platinum, having committed $75 million to Fund III and $30 million to Fund II.
Platinum Equity and New Mexico Investment Council did not respond to requests for comment.
Platinum Equity was founded in 1995 and has $5.79 billion in assets under management, according to PEI data. Platinum Equity is led by founder and chief executive Tom Gores. The firm's investment committee includes partners Jacob Kotzubei, Johnny Lopez, Philip Norment, Robert Wentworth and Louis Samson. The firm also has offices in New York, Boston, London, and Singapore.