Mubadala backs Silver Lake with $2bn investment

The $232 billion Abu Dhabi sovereign wealth fund, Mubadala Investment Company, added on to its relationship with tech private equity firm Silver Lake with a $2 billion investment for a new investment strategy. Mubadala also acquired a minority equity interest in Silver Lake. The terms of the Mubadala equity investment transaction are private and have not been publicly disclosed, according to a press release on the deal. The minority equity interest in Silver Lake was purchased from Dyal Capital Partners through a secondary transaction. Dyal, a unit of Neuberger Berman, acquired a passive, nonvoting equity interest of less than 10% in Silver Lake in 2016 and will retain roughly half of its original investment. “Silver Lake is a top performer for Dyal, having innovated, evolved and expanded to prudently grow its assets under management from $23 billion when we first acquired our stake to more than $60 billion today,” said Michael Rees, managing director and head of Dyal Capital Partners. The new investment strategy from Silver Lake has a unique 25-year deployment lifecycle and is designed to invest flexibly across investment structures, geographies and industries. The investments will also move fluidly through capital structures and across early and later stage opportunities. “As an institution that has long seen the potential of investing in the technology sector, we are excited to partner with Silver Lake, one of the world’s most respected technology investors, to capitalize on major opportunities within and beyond the industry,” said Khaldoon Al Mubarak, managing director and chief executive officer of Mubadala. “Technology is the bedrock of the global economy, and fundamental to all other sectors that are being significantly digitalized. Our goal is to be well positioned to take advantage of this accelerated digital transformation and its potential, and we believe Silver Lake is the right partner and that this is an optimal structure for us.” Mubadala began investing in global technology in 2007, through a significant stake in AMD and later through the creation of GLOBALFOUNDRIES, the world’s second-largest semiconductor manufacturing company. Through partnerships, it recently invested in medtech company PCI Pharma Services, as well as in ridesharing, e-commerce and the establishment of venture capital platforms in Silicon Valley, Europe and Abu Dhabi. The portfolio also includes an allocation to smaller venture capital allocations, such as Global Ventures, a firm focused on healthcare technology. With Silver Lake, Mubadala has already worked on investments such as Endeavor, Waymo (Alphabet’s driverless tech company) and India-based Jio Platforms. “We are extremely pleased to deepen our partnership with the visionary team at Mubadala, firmly rooted in our orientation as a long-term investor in the most iconic and enduring businesses,” said Silver Lake Co-CEOs Egon Durban and Greg Mondre, on behalf of the firm’s managing partners. “Mubadala’s support has enabled us to launch an innovative strategy that is unprecedented in its multi-decade time horizon, underscoring our long-term commitment to our portfolio companies and providing tremendous strategic advantages as we seek to generate exceptional results for many years to come.” They added that the structure of the new strategy adds flexibility necessary to capitalize on a wide range of investment opportunities, including those outside the mandates of our existing funds.

Mubadala backs Silver Lake with $2bn investment

Due diligence vet Randy Shain joins Hilton Global

Former Bessemer CIO joins Bridgewater

Welcome to Alternatives Watch

Buck hires former AndCo exec for manager research

Hybrid VC Firm rolls out second cannabis fund

Legendary trader Salem Abraham opens Fortress strategy to outside investors

HFR: HFs see first quarterly net inflow in two years

CSAM partners for sustainability platform

LLR closes latest fund with $1.8bn

Due diligence vet Randy Shain joins Hilton Global

PayPal’s crypto move wins investor support for digital currencies

Be an Alts Watcher

Subscribe to our mailing list and know first!

H.I.G. closes latest private equity fund at $1.3bn

Advent cements place as largest PE investor in Latin America

Related Articles

Get our daily news digest in your inbox

Get our daily news digest
in your inbox