Silver Lake targets $750 mln for third tech-growth fund

  • Firm launched Waterman series in 2012
  • Targets tech-growth credit investments
  • Fund III would be largest yet

Silver Lake is eyeing $750 million for its third tech-growth credit fund, ramping fund size in an ultracompetitive market for middle-market technology, sources told Buyouts.

Silver Lake Waterman Fund III targets investments in pre-IPO, later-stage growth companies in technology, tech-enabled and growth-related industries.

It lends money to such companies that don’t want the dilution of further equity rounds.

The firm was raising Fund II in 2015, according to a Form D fundraising document. How much Fund II targeted or raised is unclear.

The debut fund targeted $75 million in 2012, but ended up increasing the target to $100 million. The debut had raised at least $94 million by 2014, according to a separate Form D.

A spokesman for Silver Lake declined comment.

The Waterman team is led by Shawn O’Neill, managing director and group head of Waterman. Other managing directors include Rick Stubblefield and Brian Crews.

O’Neill previously founded investment bank Bandon Partners, and Stubblefield was a co-founder of Lighthouse Capital Partners.

Earlier this year, Silver Lake Waterman and Greenspring Associates led a $100 million growth round in OneLogin, which provides secure application access and identity management to enterprises. Other investors in the funding included CRV, Scale Venture Partners and Blue Cloud Ventures.

Silver Lake closed its fifth flagship fund on $15 billion in 2017.

Action Item: Check out Silver Lake’s Form ADV: