Platinum Equity - 2024 Updates
Wanted to hear any updates on Platinum Equity's latest performance, comp, culture, etc.
Heard that they've raise their comp recently, is that true? Where is it at now? If they pay market for their latest fund size ($12.6B), then would assume maybe low to mid $300k for Ass1?
How's the upward mobility and promotion visibility for associates? Is it a career-track role? And if not, how are the exit opps to other PE or to outside of PE?
Any insights would be helpful.
Based on previous WSO threads, here's what you need to know about Platinum Equity:
Reputation and Culture
Compensation
Upward Mobility and Career Track
Exit Opportunities
For more detailed and updated information, it might be helpful to check recent discussions on WSO or connect with current or former employees of Platinum Equity.
Can’t give you too much info for anonymity reasons but out of the names we see as competitors and who we see a lot in the same processes (LoneStar, HIG, Sun Capital, KPS, Apollo, CD&R) we seem to be generally having a better time fundraising and less high profile blowups.
I would say that personalities can be tough here but again that’s pretty common in this style of investing, and all the places I listed are also pretty tough places to work so if you like this style of investing you don’t have a tonne of great options.
The portfolio is generally very strong with two relatively large deals from the old fund in particular expected to do really really well.
I have never heard of anyone being forced to do a MBA so you can stick around for a while if you like it.
To sum up there are worse places to cut your teeth and the reputation is very good among LPs, feels like there’s a new spin out every year or so.
What is the deal with the credit team? Has the fundraising process stagnated? I interviewed with that team several years ago and passed because something didn't quite sit right with me about their momentum and team dynamic. I did think the pitch for the platform was really interesting and was optimistic going in. I have seen a few deal announcements since then, but nothing substantial in terms of growing headcount or fund launching.
Come of anon and I’ll DM you but I wouldn’t go to Platinum for the credit strategy if you had better options
Tf you mean less high profile blowups?? Incora is the most notable blow up in last couple of years, Petmate they handed over to lenders, Oregon Tools is not looking good, Aventiv about to file, SVP is a shit show. How they raised $12bn following all that is beyond me.
Hard to square some of the earlier threads about Platinum's portfolio supposedly bleeding or tanking with the person above's insider view and the objectively strong recent fundraise. Anyone have more granular color on returns? Are they strong in a vacuum or are LP's rewarding them more so for actually getting them DPI when no one else will?
This is my take on Platinum from an outsider's perspective, feel free to disagree as I'm happy to hear any differing views.
Platinum's core strategy has traditionally been to acquire low multiple (4-8x EBITDA) companies, either through complex carve-outs or busted sale processes, and lever them up aggressively such that the sponsor would only be contributing the minimum possible equity (~30% in today's environment) as a percent of TEV.
This strategy reminds me of that of Apollo ("levering the shit out of shitcos") and HIG (albeit more focused on the MM).
Can't comment on recent performance, but all three firms above have historically (past ~20 years) seen above-market returns despite consistently making the headlines for high-profile bankruptcies and restructurings of portcos. The reason for this is simple: when you're applying 5x leverage to a company you acquired for 7x, the base case IRR can be quite high (~30%), but you're also much more likely to default on your debt and potentially return 0x. When you have a portfolio of ~25 highly levered companies each with an expected IRR of ~30%, you're bound to have a few of them return 0x, but the remainder of your portfolio can oftentimes more than make up for those 0s and you can still end up with a top-quartile return at the fund level.
Happy to hear if that's the been case for Platinum's latest fund as well.
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