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Silver Lake (investment firm)

Silver Lake, legally Silver Lake Technology Management, L.L.C., is an American global private equity firm focused on technology and technology-enabled investments. Silver Lake is headquartered in Silicon Valley and New York, and has offices in London, Hong Kong, and Singapore.

In June 2023, Silver Lake were ranked 11th in Private Equity International's PEI 300 ranking of the largest private equity firms in the world.[2]

History

Silver Lake was founded in 1999, at the height of the late 1990s technology boom to make private equity investments in mature technology companies as opposed to the startups pursued actively by venture capitalists. Among the firm's founders were[3] Jim Davidson who had led the Technology Investment Banking business at Hambrecht & Quist; David Roux who had an operational and entrepreneurial background having served as chairman and CEO of Liberate Technologies, executive vice president at Oracle Corporation and senior vice president at Lotus Development; Roger McNamee, as the representative of Integral Capital Partners, a hybrid investment fund that made investments in publicly traded companies and venture capital investments in early-stage startups; and Glenn Hutchins, who came from Blackstone Group and served as a Special Advisor on economic and healthcare policy in the early Clinton Administration and previously worked at Thomas H. Lee Partners.[4]

The firm raised its first fund, Silver Lake Partners, with $2.3 billion of investor commitments.[5] Silver Lake's first fund was among the best performing funds of its vintage.[6]

The firm's second fund, Silver Lake Partners II was raised in 2004 with $3.6 billion of commitments.[7]

The firm's third fund, Silver Lake Partners III was raised in 2007 with $9.6 billion of commitments.[8] Also in 2007, the firm launched a middle-market investment business, Silver Lake Sumeru, hiring Ajay Shah and the former investment team of Shah Capital Partners. Sumeru completed fundraising for its debut fund in 2008 with $1.1 billion of capital.[9]

In 2011, Silver Lake Kraftwerk was launched to provide growth capital to later-stage companies in technology and tech-enabled businesses across the operations, energy, and resources industries.[10]

After the sale of Skype to Microsoft in 2011,[11] Silver Lake was accused of unfairly depriving Skype employees of an options windfall.[12] At issue was a clause in the Skype employee stock option grant agreement. The repurchase right gave Skype the authority to buy back shares at the grant price, when an employee left the company, even when those shares were vested.

In 2013, the firm raised its fourth fund, Silver Lake Partners IV, which closed in 2013 with $10.3 billion in committed capital.[13]

In 2017, the firm raised its fifth fund, Silver Lake Partners V, which closed at $15 billion of commitments. Jim Davidson retired from the managing partner committee.[10]

In September 2020, it was announced that Silver Lake was having negotiations to invest over $1 billion in Indian retail company Reliance Retail.[14]

In January 2021, the firm raised $20 billion for its sixth fund, Silver Lake Partners VI.[15] In December, Silver Lake purchased a minority 33.3% stake in the Australian Professional Leagues, otherwise known as the APL.[16] The group is responsible for organising Australia's national association football leagues, being the A-League Men, A-League Women and A-League Youth, with Silver Lake also having a stake in City Football Group, who own A-League club Melbourne City. Silver Lake has estimated the value of the APL and its affiliate holdings at over US$300 million.[17]

In May 2024, the firm raised $20.5 billion for its seventh fund, Silver Lake Partners VII.[18]

Key personnel

In December 2019, Silver Lake appointed Egon Durban and Greg Mondre as Co-CEOs and promoted Joe Osnoss to managing partner. Silver Lake announced Ken Hao as chairman and Mike Bingle vice chairman and managing partner emeritus, with the launch of Silver Lake Partners VI.[19][20] In December 2023, Silver Lake promoted Christian Lucas to managing partner.[21]

Investments

Since 1999, Silver Lake made investments through leveraged buyout transactions, minority growth investments and private investment in public equity (PIPE) investments. The following table details some of Silver Lake's private equity investments:

Investment strategies

Silver Lake operates through four primary strategies, all focused on technology investments:

References

  1. ^ "Vantage Data Centers Completes $9.2 Billion Equity Investment Led by DigitalBridge and Silver Lake |". www.digitalbridge.com. Retrieved August 2, 2024.
  2. ^ "PEI 300 | The Largest Private Equity Firms in the World". Private Equity International. June 1, 2023. Retrieved June 2, 2023.
  3. ^ "Silver Lake and the deal of the next century (Fortune, 1999)". Fortune. February 10, 2013. Retrieved June 1, 2016.
  4. ^ Hibbard, Justin (August 8, 2005). "Wall Street's New Alchemist". Businessweek. Archived from the original on April 27, 2006.
  5. ^ Lashinsky, Adam (August 13, 2003). "The Bottom Line: Silver Lake goes for the gold - Aug. 13, 2003". money.cnn.com. Retrieved December 12, 2023.
  6. ^ Smith, Peter (October 11, 2005). "Silver Lake aims to make a splash". www.ft.com. Retrieved February 13, 2024.
  7. ^ "Silver Lake Partners closes $3.6bn private equity fund". AltAssets. April 13, 2004. Archived from the original on July 18, 2012.
  8. ^ Weiss, Miles; Cole, Brett (February 6, 2007). "Silver Lake to Raise $10 Billion for Technology Fund". Bloomberg News. Archived from the original on October 25, 2012.
  9. ^ "Silver Lake Sumeru closes on $1.1bn". AltAssets. May 7, 2008. Archived from the original on September 28, 2011.
  10. ^ a b "Investor Spotlight: How Silver Lake's 'Four Amigos' built a tech buyout behemoth". PitchBook. April 9, 2018.
  11. ^ a b "Skype Investors Reap Windfall in Deal With Microsoft". The New York Times. May 10, 2011.
  12. ^ Burrows, Peter (June 23, 2011). "Why Some Skypers Are Seeing Red". Bloomberg Businessweek.
  13. ^ Roumeliotis, Greg (April 18, 2013). "Silver Lake raises $10.3 billion private equity fund". Retrieved December 12, 2023.
  14. ^ Raval, Anjli; Fontanella-Khan, James; Parkin, Benjamin (September 3, 2020). "Silver Lake in talks to buy $1bn stake in Reliance Retail". Financial Times. Retrieved September 3, 2020.
  15. ^ "Silver Lake raises $20 billion for buyout fund". January 13, 2021. Retrieved February 13, 2024.
  16. ^ "Australian Professional Leagues Announces Minority Investment from Silver Lake to Drive Technology Enhancements, Innovation and Growth" (PDF). Silver Lake. December 14, 2021. Retrieved December 29, 2021.
  17. ^ "A-Leagues sign minority stake deal with US private equity firm Silver Lake". Australian Broadcasting Corporation. December 14, 2021. Retrieved December 29, 2021.
  18. ^ Dorbian, Iris (May 8, 2024). "Silver Lake racks up $20.5bn for seventh fund". Buyouts. Retrieved August 2, 2024.
  19. ^ "Silver Lake Preps Expansion With Leadership Shake-Up". Institutional Investor. December 2, 2019.
  20. ^ "Silver Lake to Retool Top Leadership Positions". Wall Street Journal. December 2, 2019.
  21. ^ "Could the 'trustbusters' be making a comeback?". www.ft.com. December 19, 2023. Retrieved May 7, 2024.
  22. ^ Reichard, Kevin (August 9, 2022). "Diamond Baseball Holdings shifts from Endeavor ownership to Silver Lake". Ballpark Digest. August Publications. Retrieved September 2, 2023.
  23. ^ "Software AG Helix Growth Strategy Gains Backing from Silver Lake with €344 million Strategic PIPE Investment". businesswire.com. December 13, 2021. Retrieved April 24, 2023.
  24. ^ Babu, Juby (April 21, 2023). "Silver Lake to buy Germany's Software AG in $2.42 billion deal". Reuters.
  25. ^ Dallas insurance distributor gets $1.2 billion investment to accelerate growth The Dallas Morning News December 9, 2021
  26. ^ Fan experience set to improve after American company invests in Australian football News.com.au December 14, 2021
  27. ^ "Group 42 behind Hayat-Vax receives investment from US-based Silver Lake". Arabian Business. Retrieved April 15, 2021.
  28. ^ "Chinese Covid-19 Tests Were Pushed by Federal Agencies Despite Security Warnings". Wall Street Journal. January 13, 2021. Retrieved January 13, 2021.
  29. ^ "Payments provider Klarna raises $650 million from Silver Lake-led investor group". Reuters. September 15, 2020.
  30. ^ "Silver Lake to buy additional $600 million stake in India's Reliance Jio Platforms". TechCrunch. June 5, 2020.
  31. ^ "Expedia to boost liquidity with $3.2 billion capital raise, names new CEO". Reuters. April 23, 2020.
  32. ^ "Airbnb receives $1 billion investment from Silver Lake, Sixth Street Partners". MarketWatch. April 6, 2020.
  33. ^ "Silver Lake makes $1B investment into Twitter; Twitter, Elliott call truce as Dorsey remains CEO". TechCrunch. March 9, 2020.
  34. ^ "Self-driving car company Waymo raises $2.25 billion in first external round of funding". CNN. March 2, 2020.
  35. ^ Tejaswi, Mini (November 27, 2019). "Silver Lake to buy First Advantage". The Hindu.
  36. ^ "Manchester City's owner is worth nearly $5 billion after Silver Lake deal". CNN. November 27, 2019.
  37. ^ "Alphabet's Verily Gets $1 Billion Funding Round Led by Silver Lake". The Wall Street Journal. January 3, 2019.
  38. ^ "GE's digital unit to sell majority stake in ServiceMax". Reuters. December 13, 2018.
  39. ^ Bond, Paul (September 14, 2018). "Dalian Wanda Scales Back AMC Investment". Hollywood Reporter. Retrieved May 10, 2019.
  40. ^ "GoodRx valued at about $2.8 billion after Silver Lake investment, sources say". CNBC. August 6, 2018.
  41. ^ Chen, Lulu Yilun; Chan, Cathy (March 24, 2017). "Ant's IPO Bonanza for Silver Lake, Warburg, Carlyle". Bloomberg News.
  42. ^ "Silver Lake Buys $500 Million Stake in Credit Karma". The Wall Street Journal. March 28, 2018.
  43. ^ "Silver Lake, P2 Capital to Take Blackhawk Network Private for $2.57 Billion". The Wall Street Journal. January 16, 2018.
  44. ^ Barinka, Alex; Carey, David (January 4, 2018). "Silver Lake Takes $250 Million Stake in Startup WP Engine". Bloomberg.
  45. ^ "Silver Lake, LinkedIn Invest $300 Million in Software Provider Cornerstone OnDemand". The Wall Street Journal. November 8, 2017.
  46. ^ "Videogame Software Startup Unity Is Valued at $2.8 Billion". The Wall Street Journal. March 23, 2017.
  47. ^ Wang, Selina (February 24, 2017). "SoFi Raises $500 Million Led by Silver Lake for Global Expansion". Bloomberg.
  48. ^ "Silver Lake, GIC to Buy Stake in Ancestry.com". The Wall Street Journal. April 1, 2016.
  49. ^ "Symantec Gets $500 Million Investment From Silver Lake". The Wall Street Journal. February 4, 2016.
  50. ^ "SolarWinds to be Bought by Silver Lake, Thoma Bravo". The Wall Street Journal. October 21, 2015.
  51. ^ Gara, Antoine (November 29, 2023). "VMware's $92bn sale showers cash on Michael Dell and Silver Lake". www.ft.com. Retrieved February 13, 2024.
  52. ^ "Silver Lake bets $1 billion on Motorola Solutions". Reuters. August 6, 2015.
  53. ^ a b "Dell Enters Into Agreement to Be Acquired By Michael Dell and Silver Lake". Dell (Press release). February 5, 2013. Archived from the original on February 10, 2013. Retrieved February 5, 2013.
  54. ^ Berkowitz, Ben; Edwin Chan (February 5, 2013). "Dell to go private in landmark $24.4 billion deal". Reuters. Retrieved February 5, 2013.
  55. ^ Alden, William (February 5, 2013). "Dell's Record-Breaking Buyout". The New York Times. Retrieved February 5, 2013.
  56. ^ Financial Times website: Michael Dell orchestrates $24bn buyout deal, February 5, 2013
  57. ^ "Silver Lake and Partners Group to Buy Global Blue for $1.25 Billion". The New York Times. May 24, 2012.
  58. ^ "WME-IMG Renames Holding Company Endeavor". Variety. October 9, 2017.
  59. ^ "Silver Lake to Take Endeavor Private". Morningstar, Inc. April 2, 2024. Retrieved April 10, 2024.
  60. ^ de la Merced, Michael (April 2, 2024). "Endeavor, the Entertainment Company Led by Ari Emanuel, to Go Private". NY Times Dealbook. Retrieved April 10, 2024.
  61. ^ "Silver Lake Reaps a Golden Return on Its Alibaba Stake After the I.P.O." The New York Times. September 21, 2014.
  62. ^ "GoDaddy's IPO to value web-hosting company at up to $2.87 billion". Reuters. March 19, 2015.
  63. ^ "EBay to Sell 65 Percent Of Skype For $1.9 Billion". The New York Times. September 1, 2009.
  64. ^ "eBay Inc. Signs Definitive Agreement to Sell Skype in Deal Valuing Communications Business at $2.75 Billion - Business Wire". Retrieved June 1, 2016.
  65. ^ "The Big Winners in the Skype Deal". The New York Times. May 10, 2011.
  66. ^ "Investment Firms Pick Up Avaya For $8.2 Billion - InformationWeek". Retrieved June 1, 2016.
  67. ^ Sorkin, Andrew Ross (December 12, 2006). "2 Firms Pay $4.3 Billion for Sabre". The New York Times.
  68. ^ "Technology; Royal Philips Sells Unit for $4.4 Billion". The New York Times. Bloomberg News. August 4, 2006. Retrieved April 27, 2008.
  69. ^ "KKR in deal to buy Philips Semiconductors". Forbes. August 2, 2006. Archived from the original on January 6, 2008.
  70. ^ "Capital Firms Agree to Buy SunGard Data in Cash Deal". The New York Times. Bloomberg News. March 29, 2005.
  71. ^ "Avago files for $400m IPO". August 28, 2008.[permanent dead link]
  72. ^ Avago Tech. (AVGO) Sees IPO Price of $13-$15. Street Insider, July 27, 2009
  73. ^ Avago Technologies Limited Prices Initial Public Offering[permanent dead link]. MSN Money, August 5, 2009
  74. ^ Silver Lake's New Four Amigos Dealmaker, September 2007
  75. ^ "Silver Lake SEC Filing". The Street. October 7, 2019.
  76. ^ "Silver Lake eyes $4bn for sophomore structured equity effort". Buyout Insider. October 7, 2019.
  77. ^ "Silver Lake Launches New 25-Year Investment Strategy Backed by Mubadala". The Wall Street Journal. January 30, 2020. Retrieved February 3, 2023.

External links