By Dan Primack
March 6, 2012

Tom Gores is finding fund-raising success.

Platinum Equity Partners has quietly held a first close on more than $1 billion for its third fund, Fortune has learned. The total target is $3.75 billion, with a $4 billion hard cap. Firm principals, including founder Tom Gores, have committed to invest up to $200 million.

Expect the Los Angeles-based private equity firm’s next deal to come out of this vehicle. Recent transaction include the acquisitions of DMS Health Technologies, Keen Transport and Kodak’s image sensor business.

Limited partners include the Pennsylvania Public School Employees’ Retirement System ($200m commitment), which reports that Platinum’s first fund (2004) features a 3.4x net multiple on cash and a 62.8% net IRR and that its second fund (2007) features a 1.4X net multiple on cash and a 9.1% net IRR.

Park Hill Group is serving as placement agent.


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