Silver Lake raises $10.3 billion private equity fund

Thu Apr 18, 2013 5:17pm EDT
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By Greg Roumeliotis

NEW YORK (Reuters) - Silver Lake, the partner of Michael Dell in a $24.4 billion deal to take Dell Inc DELL.O private, said on Thursday it had raised $10.3 billion from investors for its latest private equity fund, the largest of its kind to focus on technology.

The successful fundraising indicates confidence from investors in the buyout firm. The fund, Silver Lake Partners IV, started fundraising last year with a target of $7.5 billion. Reuters reported last month that Silver Lake would exceed that and raise some $10 billion on strong demand.

"We received strong investor demand for this fund and are deeply gratified by the confidence in Silver Lake demonstrated by our limited partners, many of whom have been long-term investors with us," the firm's managing partners Jim Davidson, Egon Durban, Ken Hao, Mike Bingle and Greg Mondre, said in a statement.

For the first time in Silver Lake's history, the majority of the investors in the fund were based outside the United States, with a big inflow of money coming from Asia and the Middle East, according to a person familiar with the matter.

All the top ten investors by capital that participated in Silver Lake's previous fund also made commitments to the latest fund. Some $300 million was committed to the fund by Silver Lake fund managers and entities affiliated with them, the person said.

Silver Lake declined to comment.

Investors in Silver Lake's funds include public and corporate pension funds, sovereign wealth funds, endowments, foundations, family offices and high net-worth individuals.

Silver Lake, whose best known investments include Skype and Chinese e-commerce company Alibaba Group, was founded in 1999 by Davidson, Glenn Hutchins and David Roux.   Continued...

Jim Davidson, Co-Founder and Chairman of Silver Lake, speaks at a panel discussion "Private Equity: Where Risk Meets Opportunity" at the 2009 Milken Institute Global Conference in Beverly Hills, California April 28, 2009. REUTERS/Fred Prouser