Platinum Equity Raises $2.28 Billion for Lower Middle Market Investments

Beverly Hills-based Platinum Equity raised $2.28 billion for Platinum Equity Small Cap Fund II, L.P., its latest fund focused on investment opportunities in the lower middle market. The fund exceeded its target of $1.75 billion.

“We’ve built a powerful lower-middle market franchise that draws on three decades of experience and allows us to create value across the full spectrum of investment opportunities,” said Tom Gores, Platinum Equity chairman and chief executive, in a statement. “The team has deep roots and tremendous momentum, and the overwhelming response to our latest fund is a testament to that.”

The firm’s lower middle market team comprises more than 40 professionals across North America and Europe. The group specializes in transactions involving founder- or family-owned businesses, complex corporate divestures, public-to-private transitions and acquisitions from a diverse range of private sellers. Recent acquisitions include home appliance distributor R&B Wholesale Distributors, Italian pesto maker Polli, and HVAC/R distributors Global and MARS.

Small Cap II marked Platinum Equity’s second capital raise in back-to-back years. The flagship Platinum Equity Capital Partners VI closed in 2024 with $12.4 billion in capital commitments. The firm has raised more than $47 billion in equity commitments from institutional investors since launching its funds business in 1995.

Simpson Thacher & Bartlett LLP is Platinum’s fund counsel and legal adviser for Small Cap II.

Information for this article was sourced from Platinum Equity.