Platinum closes second buyout fund on $2.75bn

The Tom Gores-led buyout shop has exceeded its target of $1.5bn, and has already invested the fund in at least four deals.

US private equity firm Platinum Equity has closed its latest fund on $2.75 billion (€1.9 billion) in commitments, exceeding its initial fundraising target of $1.5 billion.

The Los Angeles-based firm, founded in 1995 by entrepreneur Tom Gores, will also make a commitment that will increase the fund’s available capital to more than $3 billion, according to a statement.

The firm said its limited partners include public and private pension funds, financial institutions, university endowments and trusts in North America, Europe and Asia.

The New Mexico State Investment Council and the Pennsylvania School Employees' Retirement System (PSERS) have committed $30 million and $300 million to the fund, respectively.

Platinum Equity Capital Partners II has already invested in at least four acquisitions, which include the $2 billion take-private of metals services company Ryerson and the $304 million purchase of telecom business Covad Communications.

Platinum closed its first fund on $700 million in 2004. Like the first fund, the Platinum’s latest vehicle will invest in controlling stakes in undermanaged or underperforming business and execute operations-intensive turnarounds, according to documents from PSERS' private investment program.