Los Angeles private equity group Platinum Equity said Wednesday it had closed a new $2.75 billion leveraged buyout fund, indicating investors have not given up on private equity firms with a solid track record.

Platinum initially had a $1.5 billion target for Platinum Equity Capital Partners II, but founder and billionaire Tom Gores said strong investor demand and new opportunities encouraged the Los Angeles firm to increase the fund size to $2.75 billion.

Investors in the fund include a diverse array of public and private pension funds, financial institutions, university endowments and trusts in North America, Europe and Asia. Platinum said it has committed to make a substantial co-investment that will increase the new fund's available capital to more than $3 billion.

"Our hands-on approach to operations works especially well in the current economic climate," said Gores, in a statement. "Our success in reacting to changing market conditions has always differentiated us."

Platinum's portfolio comprises 22 companies in a variety of industries. Fund II has already made several investments, including Ryerson Inc., a large metals service center operator, and Covad Communications, a provider of voice and data communications products and services.

Platinum last month sold a Fund I investment, PNA Group, a steel service center business, to Los Angeles-based Reliance Steel & Aluminum Co. in a transaction valued at approximately $1.1 billion.

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