Silver Lake has Wall Street questioning flurry of minority investments - Business Insider

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'The tech version of Warren Buffett': Inside Silver Lake's pandemic-era dealmaking machine, where big buyouts have given way to minority stakes

Private-equity firm Silver Lake Partners invested as part of a $2.5 billion fundraising in Alphabet's self-driving car unit this year.Silver Lake Partners is a private-equity firm known for doing leveraged buyouts of tech giants like Dell Technologies and Skype.

Silver Lake is run by Egon Durban and Greg Mondre, named as co-CEOs in a December management shuffle. Ken Hao serves as chairman. Private-equity firm Silver Lake is best known for doing leveraged buyouts of big-name, mature technology companies. Think Dell Technologies, Skype, or Broadcom. The flurry of activity reestablished Silver Lake as a preeminent private-equity fund for the technology industry after several years in which competitors Vista Equity Partners and Thoma Bravo stole attention with big deals as valuations climbed.

Instead of focusing solely on pure technology investments like software companies and video conference platforms, it's now backing companies that span media, entertainment, sports and travel. "You look at some of their huge wins: Broadcom or Dell or Skype," said one of the people. "They were super hands-on. They were on the board and crafting the strategy, and they were super creative financially. These investments are different."

The four men, who grew up together at Silver Lake, took over day-to-day management years ago from original founders David Roux, Jim Davidson, Glenn Hutchins and Roger McNamee, who founded the company in 1999. McNamee left a few years later to found Elevation Partners.

 

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