Tech investor Silver Lake shoots past $18bn target for Fund VI

In the midst of a health crisis, Silver Lake exceeded the target set for a sixth flagship offering launched earlier this year.

The Menlo Park, California, tech-focused private equity firm this week filed a Form D fundraising document saying Silver Lake Partners VI collected more than $18.27 billion. It now stands above the anticipated final tally of $18 billion, reported last month by Buyouts.

Fund VI is not as yet wrapped up, a person with knowledge of the matter told Buyouts. Silver Lake declined to comment.

At its present level of commitments, Fund VI is the largest fund in Silver Lake’s more than two-decade history. It is 22 percent bigger than its predecessor, closed three years ago at $15 billion.

More than 400 limited partners signed on to Fund VI, the Form Ds show. Disclosed LPs include Florida Retirement System Trust Fund, which committed $175 million; Los Angeles County Employees’ Retirement Association, Teacher Retirement System of Texas and Teachers’ Retirement System of the State of Illinois, each of which supplied $200 million; and New York State Teachers’ Retirement System, which committed $300 million.

Silver Lake’s fundraising is benefiting from an LP flight to quality, whereby large institutions re-up only with their best-performing PE relationships, Buyouts reported last month. The dynamic is helping keep PE fundraising fairly robust, even as other managers extend or pause activity.

Fund VI will pursue large-cap investments in companies in the tech, tech-enabled and related growth sectors, according to a report issued by New Jersey Division of Investment. It will make 15 to 25 investments, writing initial equity checks of $400 million to $1.25 billion. Target opportunities include buyout deals, structured minority investments, and acquisition and debt financings.

Silver Lake is led by Egon Durban and Greg Mondre, who in December were appointed the firm’s first co-CEOs. Ken Hao was at the same time made chairman, while Joe Osnoss was promoted to managing partner. The four, who have been with the firm since or shortly after its founding, are Fund VI’s key principals.

Today, Silver Lake’s leadership team oversees more than 100 investment and operating professionals located in offices in North America, Europe and Asia.

Silver Lake has to date generated a 19.2 percent net IRR and a 1.8x net multiple across five funds, according to the NJDI report. Fund V was generating a 14.6 percent net IRR and a 1.16x multiple as of December.

Dyal Capital Partners, the GP stakes affiliate of Neuberger Berman, in 2016 acquired a minority interest in Silver Lake.

Action Item: Check out Silver Lake’s ADV filings here.