Platinum Equity Secures Over $2.28 Billion for Small Cap Fund II Focused on Lower Middle Market

Platinum Equity Closes Small Cap Fund II with $2.28 Billion

On September 5, 2025, Platinum Equity proudly announced the completion of capital raising for its latest investment vehicle, the Small Cap Fund II, L.P. This initiative is dedicated to tapping into promising investment opportunities within the lower middle market segment. Impressively, the fund reached a total of $2.28 billion in commitments, significantly surpassing its initial target of $1.75 billion.

Platinum Equity's Small Cap Fund II utilizes the firm’s distinctive MAO® strategy, which seamlessly merges investment acumen with extensive operational expertise. This strategy is executed by Platinum’s specialized lower middle market investment team, which has been operational for over a decade, following the direction of the firm’s flagship funds as they transitioned into larger scale deals.

Tom Gores, the Founder and CEO of Platinum Equity, expressed immense confidence in the fund’s foundation, stating, "We’ve built a powerful lower-middle market franchise that draws on three decades of experience. The overwhelming response to our latest fundraising event validates this.” His words underscore the strength and momentum of the firm in navigating the lower middle market landscape.

The dedicated lower middle market team at Platinum Equity is comprised of more than 40 professionals specializing in mergers and acquisitions. Their focus spans transactions involving founder- or family-owned companies, complex corporate divestitures, public-to-private transitions, and various acquisitions dealing with private sellers. Recent strategic acquisitions include notable names such as RB Wholesale Distributors, an appliance distributor, the Italian pesto firm Polli, and HVAC/R distributors like Global and MARS.

The completion of the Small Cap Fund II highlights Platinum Equity's successful fundraising efforts, marking the second consecutive year of significant capital raising. Last year, the firm also secured $12.4 billion through its flagship Platinum Equity Capital Partners VI fund. Since launching its fund operations over 20 years ago, Platinum has amassed more than $47 billion in equity commitments from institutional investors, a remarkable testament to its robust investment approach and market trust.

Legal support for the Small Cap Fund II was provided by Simpson Thacher & Bartlett LLP, ensuring comprehensive legal oversight in the execution of this fundraising initiative.

Platinum Equity’s roots trace back to 1995 when it was established by Tom Gores. Today, the firm manages approximately $50 billion in assets, overseeing a diverse portfolio that includes around 60 operating companies across varied business sectors such as manufacturing, distribution, transportation, media and entertainment, and more. By employing its MAO® strategy, Platinum Equity continues to excel in acquiring and managing an assortment of businesses, showcasing its versatility and strategic prowess.

Through its historical track record of over 500 acquisitions in the past three decades, Platinum Equity underscores its commitment to creating value across investment opportunities, especially within the vital lower middle market sector. This recent achievement serves not only as a milestone for Platinum Equity but also reflects the overall growth and potential of the lower middle market as a critical area for strategic investment.