Platinum Equity Insight

Question on Platinum Equity. Have seen some people here say they are screwed, but they also raised a decent fund recently that was above the last one. What’s up with that?

Also heard culture issues are very bad. Does anyone have any stories/insight and are they universally bad or only certain teams?

Are they a decent place to go in terms of career development? Seems odd that they don’t have (m)any senior people who were former bankers/PE guys. Wonder how that speaks to development or the above culture point.

Thanks, would appreciate any views or comments.

2 Comments
 
Most Helpful
  • Fund VI - most of the fundraise was done way before fundraising slowed down industry-wide. What is holding them back from communicating the first close is contingencies around their largest and most important LPs (not a good sign). Internally they were hoping for $20bn, then down to $15bn, and now expected $12bn. There are still many Fund IV and Fund V investments that have been struggling with liquidity issues. You can look at the debt trading prices of their portfolio companies to confirm this. One of the many firms that bought everything and anything under the sun in the low rate era and now struggling under their thesis of "anything (even the shittiest companies) can be a good investment at the right price"
  • Culture, like with any firm, is highly dependent on the team you can assigned to. In case you are not aware, you get recruited to work for a specific MD/principal/VP. If you don't mesh with them (highly likely given many strong personalities at this firm), you're screwed. This is very different from other PE firms that have a pool of investment team members where you can work with different partners
  • In terms of career development, the best part of the firm is the brand name and scale of the platform. Lots of nepotism at the firm. Lots of clowns at the firm as a result, including Tom Gores. For example, the firm does not have a summer analyst program but if you see an intern they are connected to a senior person at the firm. Investment committee is incompetent as well except for 3 people
 

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