Platinum Strikes Gold on Second Lower Middle Market Fund

Platinum Equity has closed its second lower middle market fund, Platinum Equity Small Cap Fund II LP, with $2.28 billion in total commitments—well above its $1.75 billion target. The firm’s first lower middle market fund closed in July 2018 at its hard cap of $1.5 billion.

The new fund will focus exclusively on the North American and European lower middle market—defined by Platinum as companies with less than $450 million of revenues and $45 million of EBITDA—and will act as a complement to Platinum Equity Capital Partners VI, a $12.4 billion buyout fund that closed in March 2017 and focuses on much larger transactions.

“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, the chairman and CEO of Platinum. “The team has deep roots and tremendous momentum, and the overwhelming response to our latest fund is a testament to that.”

Platinum’s lower middle market investment team—comprising more than 40 M&A and operations professionals across North America and Europe—invests in founder-led or family-owned businesses, corporate carve-outs, and public-to-private transactions. Recent small-cap acquisitions include U.S. home appliance distributor R&B Wholesale Distributors (January 2025); Italian food manufacturer Polli (November 2024); and HVAC/R distributors Global (December 2024) and MARS (July 2024).

Platinum Equity, headquartered in Beverly Hills, invests in a range of industries including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. Formed in 1995 by Mr. Gores, the firm has completed more than 500 acquisitions over the past 28 years.

Legal services for this fundraise were provided by Simpson Thacher & Bartlett.

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