Platinum Equity Raises $2.3B for Lower Middle Market Fund - InforCapital

Platinum Equity has successfully closed its second lower middle market fund, Platinum Equity Small Cap Fund II LP, with commitments totaling $2.28 billion. The close exceeded its $1.75 billion target, demonstrating continued investor appetite for small-cap private equity opportunities.

The new fund follows Platinum’s debut lower middle market vehicle, which raised $1.5 billion in 2018. Fund II will target companies across North America and Europe with less than $450 million in revenue and under $45 million in EBITDA. This strategy complements the firm’s larger $12.4 billion Platinum Equity Capital Partners VI fund, focused on bigger buyouts.

Tom Gores, founder, chairman, and CEO, emphasized the strength of the platform: “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 overwhelming response to our latest fund is a testament to that momentum.”

The lower middle market team, made up of more than 40 M&A and operations specialists across the U.S. and Europe, will continue investing in founder-led and family-owned businesses, corporate carve-outs, and public-to-private transactions. Notable recent deals include U.S. home appliance distributor R&B Wholesale Distributors (2025), Italian food manufacturer Polli (2024), and HVAC/R distributors Global and MARS (2024).

Platinum Equity, headquartered in California, operates across industries such as manufacturing, logistics, equipment rental, media, technology, and telecommunications. Since its founding in 1995, the firm has executed more than 500 acquisitions globally, strengthening its reputation as a diversified investment platform.

Global fundraising trends underscore the scale of Platinum’s achievement. In 2024 and 2025, several private equity managers—including Advent International and EQT—also raised significant mid-cap and small-cap funds, reflecting a strong pipeline of opportunities in the lower middle market as institutional investors look for higher-yield strategies amid economic shifts.

Legal counsel for Platinum’s latest fundraising effort was provided by Simpson Thacher & Bartlett, underscoring the complexity and scale of the transaction.

With Fund II, Platinum strengthens its ability to deploy capital into dynamic small-cap businesses across North America and Europe, continuing its mission of creating long-term value across multiple sectors and geographies.