Tom Gores’ Platinum Equity Tests the Loyalty of Its Investors

Tom Gores has many of the spoils you’d expect of a self-made private equity billionaire: an NBA team, a Los Angeles mansion and a glitzy Beverly Hills office where he can throw parties for his friend Leonardo DiCaprio.

But it’s that ownership of the Detroit Pistons that may be nearest to the heart of this proud son of Michigan. Back in May, as the team was ending its best season since 2008, he praised supporters for sticking by them through the bad times.

“It wasn’t that long ago I was apologizing,” the Platinum Equity founder said. “I want to thank the fans ...