Platinum Equity has announced the completion of fundraising for its second lower middle market investment vehicle, Platinum Equity Small Cap Fund II, L.P. The fund closed with $2.28 billion in capital commitments, surpassing its original target of $1.75 billion.
Small Cap Fund II is designed to focus on investment opportunities in the lower middle market, a space Platinum Equity has been actively cultivating for more than a decade. As the firm’s flagship funds have moved upstream into larger transactions, the dedicated lower middle market team has remained focused on smaller, often more complex deals. These include founder- and family-owned businesses, corporate carve-outs, public-to-private transitions, and acquisitions from a wide range of private sellers.
The fund will be managed using Platinum Equity’s signature M&A&O strategy, which blends traditional investment acumen with deep operational expertise. This integrated approach enables the firm not only to acquire businesses but also to drive transformation and growth post-acquisition. The lower middle market team, comprising more than 40 professionals across North America and Europe, is well-equipped to handle the unique challenges and opportunities associated with these types of transactions.
Recent acquisitions under this strategy include R&B Wholesale Distributors, a home appliance distributor; Polli, an Italian pesto manufacturer; and HVAC/R distributors Global and MARS. These deals reflect the team’s ability to identify and execute investments across a wide range of industries and geographies, often in situations that require tailored solutions and hands-on operational support.
The closing of Small Cap Fund II follows the successful raise of Platinum Equity Capital Partners VI in 2024, which brought in $12.4 billion in commitments. With more than $47 billion raised from institutional investors since the launch of its funds business over twenty years ago, Platinum Equity continues to demonstrate its ability to attract capital and deliver results across market cycles.
Advisor/counsel: Simpson Thacher & Bartlett is Platinum’s fund counsel and legal adviser for Small Cap II.
KEY QUOTE:
“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. The team has deep roots and tremendous momentum, and the overwhelming response to our latest fund is a testament to that.”
Platinum Equity Chairman and CEO Tom Gores, who founded the firm in 1995
