Platinum Equity raising capital for launch of investment fund. (Wall Street West).

PLATINUM Equity Holdings LLC, the growing investment shop run by billionaire Tom Gores, is on the hunt for bigger game.

The firm has hired Atlantic-Pacific Capital Inc., a Greenwich, Conn. firm that raises capital, to launch its first investment fund, according to a source familiar with the deal.

The $750 million fund would finance the same type of deals that Gores has long been known for, but would allow it to pursue even larger quarry.

Platinum Equity, which seeks to raise the money from pension funds, foundations and institutional investors, decided to establish the fund after being approached by investors looking for a better place to park their money.

"There had been this building market demand and inquiries from outside the firm," the source said.

Platinum started work on raising the money several weeks ago, and it is expected to take months to close the fund.

Platinum, founded in 1995, owns some 30 companies that generate roughly $4 billion in revenues. It most recently acquired Applix Inc., a Westborough, Mass. customer relationship management business, for $5.75 million in cash and $3 million in debt.

Officials with Platinum and Atlantic-Pacific declined comment, citing regulations that prohibit public discussion of private investment funds during the fund raising process.