Silver Lake and Mubadala Partner to Establish Unique Long-Term Investment Strategy30 September 2020
Silver Lake, the global leader in technology investing, and Mubadala Investment Company, one of the world’s largest global investors, today announced they are building on their existing relationship by establishing a long-term investment strategy led by Silver Lake and supported by a $2 billion investment from Mubadala.
The new strategy has a unique 25-year deployment lifecycle and is designed to invest flexibly across investment structures, geographies and industries, as well as fluidly throughout capital structures and across the spectrum of early to later stage opportunities, consistent with Silver Lake’s clearly defined mission to build and grow great companies for the benefit of all stakeholders. In addition to forming the new strategy, Mubadala has also acquired a minority equity interest in Silver Lake. The two firms have already worked collaboratively across investments such as Endeavor, Waymo (Alphabet’s driverless technology 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. The creative structure of this new strategy provides significant added flexibility for Silver Lake to capitalize on a wide range of investment opportunities, including those outside the mandates of our existing funds. The launch of this new business builds on and expands the backbone of Silver Lake’s expertise throughout the technology eco-system and beyond. It also underscores how aligned our two organizations are in prioritizing partnership, talent development, and social responsibility.”
“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.
Mubadala has acquired the minority equity interest in Silver Lake from Dyal Capital Partners through a secondary transaction. Dyal, a unit of Neuberger Berman, acquired a passive, non-voting 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. “This transaction with Mubadala and their commitment to Silver Lake’s new long-term capital vehicle is a strong endorsement of Silver Lake’s differentiated, global capabilities and underscores our conviction in the ability to generate compelling returns by owning stakes in the world’s leading private investment firms. We look forward to continuing to work together with our partners at Silver Lake and Mubadala for many years ahead.”
The terms of the Mubadala equity investment transaction are private and have not been publicly disclosed.