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“Everything’s bigger in Texas—even the deals. Just ask Michael Dell, founder and CEO of his namesake company, once the largest PC maker in the country. In 2013, along with private equity firm Silver Lake Partners, he took Dell private, a transaction worth $24.4 billion—the largest leveraged buyout since the Great Recession. The sequel, two years later, was even grander.”
What the UFC deal represents is something entirely different, a new and even more audacious strategic strike that aims to challenge the core assumptions of the entertainment industry. Because this time, instead of just helping others create projects, they’ve made a major, multibillion-dollar leap into owning content themselves.
How Dell, led by Michael Dell, and its financial backer, the investment firm Silver Lake, made it this far is in part a tale of an unusual struggle to finance the biggest-ever takeover in the tech industry, one that drew on debt raised in the face of tumultuous markets. The undertaking included the fourth-largest investment-grade corporate bond ever raised, the second-largest this year, as ranked by Thomson Reuters.
Backing the deal are the private equity heavyweights Silver Lake, Kohlberg Kravis Roberts, and the investment firm of the billionaire Michael S. Dell. The deal highlights the power and reach of the 23-year-old U.F.C., whose fights are now shown in more than 156 countries and take place in all 50 states, and which claims millennials as some 45 percent of its audience.
Silver Lake, the controlling shareholder of Cast & Crew, said it is committing “substantial” additional equity to fund the acquisition and support Cast & Crew’s continued growth. Since Silver Lake’s acquisition of Cast & Crew in July, the company has accelerated investments to strategically align the company for the digital future of the industry.
Silver Lake’s investment in Symantec back in February anticipated a transaction like the Blue Coat deal, with the firm setting itself up to provide additional financing if Symantec were to pursue a deal that needed private equity help. And Silver Lake believes that other, smaller acquisitions may be in the offing for the security software provider in the future.
BC and Silver Lake bought MultiPlan about two months after the Viant deal closed and focused on integrating the businesses. Under BC and Silver Lake, Ebitda increased about 50%.
Private equity firm Silver Lake Partners has agreed to acquire a minority stake in Ancestry.com in a deal that values the privately held genealogy website at $2.6 billion, including debt. The investment represents a bet that Ancestry's fast-growing DNA business will continue to expand.
Emanuel and Whitesell have used the Silver Lake money to acquire or team with a whopping 12 businesses, branching into areas including Professional Bull Riders, an e-sports league with Turner and buying former client Donald Trump's Miss Universe Organization. Emanuel, who has taken the lead on the fashion and international businesses, and Whitesell, whose focus is sports, also are executing an aggressive strategy of integrating the formerly siloed divisions.
SoftBank, the Japanese technology group, has invested $250m in WME-IMG, which represents stars ranging from actor Ben Affleck to tennis player Serena Williams, in a deal that values the entertainment, sports and fashion company at $5.5bn. The deal represents a steep increase in the value of WME-IMG over the past two years.
Private-equity firm Silver Lake is making a $500 million investment in Symantec Corp. and taking a board seat in a bid to boost the cybersecurity company. Symantec makes security software, a hot commodity in times of rising concerns about the safety of the Internet and global hacking.
In a year of few tech-industry IPOs, most of which disappointed, GoDaddy is a shining example of how business and finance are supposed to work.
Silver Lake and Warburg Pincus stand to nearly triple their money on their 2010 acquisition of Interactive Data, reflecting the recent surge in demand for fixed-income data. The value of their roughly $1.2 billion stake in the original deal is worth over $3 billion in the sale to ICE.
In striking its deal of more than $60 billion, Dell and its financial backer, the investment firm Silver Lake, are betting that a huge acquisition will help one of the best-known names in the industry keep up with the times. Buying EMC would give Dell one of the biggest names in computer data storage, adding to existing offerings like network servers, corporate software and mobile devices.
In seeking out Silver Lake, Motorola Solutions is hoping to accelerate a transition from selling only radios that police officers, fire departments and other emergency workers use, to a broader emergency communications platform.
Tintri just closed a healthy $125 million Series F funding round which it will use to build out channel and marketing activities around its storage appliance. This round was led by Silver Lake Kraftwerk.
Private equity firm Silver Lake has acquired Cast & Crew Entertainment Services, the Burbank-based payroll services company, for $700 million.
Private equity firm Silver Lake Partners LP said on Monday it would lead a $500 million investment in Qunar Cayman Islands Ltd, the Chinese travel website controlled by the country's internet search engine company Baidu Inc. In its second biggest investment in China after its deal with e-commerce company Alibaba Group Holding Ltd, Silver Lake said it would invest $330 million in Qunar in the form of convertible bonds.
Ten years ago, Silver Lake and KKR partnered to create Avago Technologies, through the purchase of Agilent’s semiconductor business. They then took the company in public in 2009 and, by 2011, had effectively exited with 5x cash-on-cash returns. [Silver Lake] made a $1 billion convertible debt investment into Avago to help finance the LSI purchase. Were Silver Lake to convert its notes at Avago’s current trading price, the stake would be worth approximately $3 billion.
An accelerating wave of consolidation in the semiconductor industry has a new point man: Hock Tan, a press-shy numbers guy now mounting the largest takeover in high-tech history. “He has a unique ability to run a big business as if it were a small business,” said Kenneth Hao, an Avago director and managing partner at Silver Lake, the chip maker’s second-largest investor.
Shares of Virtu Financial Inc. surged in their market debut. The company expects to invest in the business a small amount of the money raised in the offering, while the bulk of it will be used to buy out current investors, which include executives and private-equity firm Silver Lake.
The company’s shares made their trading debut on Wednesday at $26.15, about 30 percent above the initial public offering price of $20 a share, a dollar more than the top end of the expected range. Since its takeover by three private equity firms — Silver Lake, Kohlberg Kravis Roberts and Technology Crossover Ventures — for $2.25 billion in 2011, GoDaddy has expanded both its line of offerings and its international presence.
Silver Lake, the firm that helped Michael Dell take his computer company private, plans to announce on Wednesday that it has invested $250 million in Red Ventures for a minority stake. The investment is a wager that the company and its suite of marketing tools represent a unique, and highly lucrative, approach to acquiring customers for companies like DirecTV, Verizon and MetLife.
Silver Lake is now looking to a century-old Hollywood talent agency behind Matt Damon and Serena Williams for its next big windfall. The investment in William Morris Endeavor, the agency run by Ari Emanuel and Patrick Whitesell, “will be one of the highest returning investments that we have done”, says Egon Durban, Silver Lake’s managing partner.
The market debut of the Alibaba Group, the Chinese Internet titan, hit the stock markets like a meteor last week, ending its first day of public trading on Friday worth a staggering $231 billion.
Since 2010, Mercury’s majority owner has been the investment firm Silver Lake Partners, which invested about $450 million in cash in exchange for a 62 percent stake. Since then, the company has expanded its reach, including increasing its merchant base to 90,000 from 40,000 in 2009. During that same time, its revenue grew to $237 million from $87 million, while its earnings before interest, taxes, depreciation and amortization nearly tripled to $93 million.
The IMG purchase, financed by Silver Lake, puts WME into new territory. Though the potential of IMG’s sports properties hogged the headlines post-deal – the company is active in highly lucrative college sports leagues as well as golf – a closer examination of IMG reveals plenty of fashion opportunities for its new owners.
Avago Technologies plans to make the biggest acquisition in its history — with the help of a former owner. As part of the deal, Silver Lake will invest $1 billion in the form of a convertible note, supplementing a $4.6 billion loan from a group of banks.
With shareholders formally approving the company’s sale to Mr. Dell and the investment firm Silver Lake Partners for $24.9 billion earlier in the day, the task now lies in what the founder described as optimizing the company’s current form. Over the last five years, Mr. Dell has moved to shift Dell from primarily making personal computers toward providing software and services for corporate clients.
It has been a while since there has been a notable departure at tech giant Hewlett-Packard. But the dry spell is over. Ajei Gopal, an HP senior vice president and general manager in its software business unit, is leaving the company for a position with the private equity firm Silver Lake Partners, sources tell AllThingsD.
For Dell, a $24.4 billion deal to take itself private is a bold move out of Wall Street’s harsh spotlight as it tries to remake itself in a world where personal computers are no longer the big business in technology. The private equity firm Silver Lake, one of the most prominent investors in technology companies, is contributing about $1 billion in cash.
Silver Lake is doubling down on digital media by bringing on Dave Habiger as a Senior Advisor. Habiger most recently served as the CEO of U.K.-based pay TV set-top box maker NDS and before that led the digital movie download provider Sonic Solutions.
Hollie Moore Haynes, Managing Director at Silver Lake Sumeru, the firm's middle market strategy, discusses private equity's role in big data's evolution.
Charles Giancarlo, Managing Director at Silver Lake, talks about trends in technology and the impact of mobile on the industry.

Glenn Hutchins, Silver Lake's Co-Founder, provides perspective on the global economy and highlights investment opportunities in the technology industry, particularly in China's e-commerce sector.

Silver Lake started building relations with Alibaba Group almost as soon as it launched its Asia operations in 2008. When Alibaba decided last year that it wanted to facilitate the sale of a 5.7% stake, Silver Lake and its counterparts presented the right solution at the right time. This transaction was named Private Equity Deal of the Year at the AVCJ China Awards.

Despite waning investor sentiment, large U.S. buyout firms are some of the fittest in the industry and the most likely to produce outsized returns, according to the Spring 2011 HEC Dow Jones Private Equity Fitness Ranking. For the second year running, Silver Lake retained its #1 ranking.

The private equity firm Silver Lake and the investment management company Partners Group have agreed to buy Global Blue, a tax-free shopping business. The deal, valued at about $1.25 billion, is one of the largest private-equity-backed leveraged buyouts in Europe this year.

Silver Lake Partners is buying a minority stake in leading talent agency William Morris Endeavor Entertainment in a deal that aims to help the agency build its clients' brands on digital platforms. Silver Lake Managing Partner Egon Durban will join the agency's executive committee and help to create a new technology advisory council that will identify growth opportunities to benefit the agency's clients.

Silver Lake, the technology investment firm, has bought a 31 per cent stake in William Morris Endeavor Entertainment to finance the expansion of the media and entertainment agency into new digital areas. The sale of the stake to Silver Lake for an undisclosed sum will fund further WME expansion as the media and entertainment industry continues to migrate to new online platforms and devices.

Private equity firms Silver Lake Partners and TPG Capital said they intend to fund a majority of the nearly $227 million Avaya needs to buy Israeli video conferencing company Radvision.

Silver Lake expects buyout firms to zero in on makers of telecommunications and mobile-phone gear this year, spurring a new round of deal making.

Charles Giancarlo, Managing Director at Silver Lake, talks about the technology industry, Microsoft's integration of Skype and the outlook for Netflix and Yahoo!

Jim Davidson, Co-Founder of Silver Lake, discusses the role that private equity plays in the broader economy and his outlook for the technology sector.

Glenn Hutchins, Co-Founder of Silver Lake, discusses the long-term structural problems he sees in the U.S. economy, including debt in the public and household sectors, housing and high unemployment levels.

Private equity is again getting a seat at the table at the Federal Reserve Bank of New York. On Thursday, the regulator named Glenn Hutchins, Co-Founder of Silver Lake, as a new director.

The new team added features and new versions of Skype every four to six weeks, and dove into significant new businesses, including smartphone apps, deals to embed Skype in consumer products like TVs and game consoles, and partnerships with Facebook and Verizon Wireless. Just a year after the buyout, Skype was surging: Users had climbed to 600 million from about 400 million a year earlier — and it saw rising usage of its video calling services.

Forward-looking private equity investors can reap strong returns from global growth opportunities, despite the powerful headwinds that are buffeting the U.S. economy, according to Glenn Hutchins, Co-Founder of Silver Lake.

Glenn Hutchins, Co-Founder of Silver Lake, talks about his investing strategy and the American economic recovery.

Silver Lake and the other investors swiftly moved to spruce up Skype. Over the last two years, they have pushed the Internet company to increase its focus on development, shortened product cycles and forged new partnerships. Skype also moved to build out its services in the mobile and the enterprise space, both considered high-growth markets.

Silver Lake, in partnership with George Soros, spent the past 18 months reviewing what has worked for cleantech investing and has been developing an investment thesis. For important additional information regarding the differences in the management and portfolio investments of Silver Lake Kraftwerk and Silver Lake Partners, as well as Foundation Capital, please click here.

Glenn Hutchins, Co-Founder of Silver Lake, discusses the outlook for private equity and investment strategy and also talks about the prospects for the U.S. economy.

Silver Lake has formed a fund to invest in clean energy businesses. The move highlights the popularity of "clean tech" businesses - companies that use technology to improve energy efficiency.

Egon Durban is part of a nucleus of rising stars at Silver Lake known as "the four amigos," the others being Mike Bingle, who leads financial technology deals; Greg Mondre, who heads investments in communications technology and Internet and IT infrastructure; and Ken Hao, who spearheads deals in Asia.

Christian Lucas has been appointed co-head of Silver Lake's Europe, Middle East and Africa businesses with Joe Osnoss. Lucas and Osnoss will lead a team based in London that is expected to focus on prime technology assets that can be expanded globally.

Jim Davidson, Co-Founder of Silver Lake, discusses the outlook for investing in technology companies and the prospects for mergers and acquisitions in the industry.

Silver Lake’s Co-Founder, Glenn Hutchins, was one of the featured experts on "Meeting of the Minds: The Future of Technology," a CNBC prime-time special hosted by anchor Maria Bartiromo.

Following completion of its maiden deal in China, Silver Lake’s head of Asia, Kenneth Hao, explains how the US firm’s technology-focused investment remit has been translated to Asia.

Ajay Shah, Founding Managing Director, Silver Lake Sumeru, discusses the most promising area in technology investing and how Silver Lake is staying viable in the hunt for new deals amid stalled credit markets.

Glenn Hutchins, Co-Founder of Silver Lake, looks at the causes of the financial crisis and says scientific advances and entrepreneurship will help lead us out of it.

Glenn Hutchins, Co-Founder of Silver Lake, argues that what the economy needs is a stimulus package with enormous scale and years of follow through.

A quartet of investing legends founded Silver Lake eight years ago. Now a new foursome, none yet 40, looks to continue the firm's tech dominance.

In 2000, investors led by Silver Lake Partners stunned Wall Street and Silicon Valley with an unusual deal for the technology industry: they spent $2 billion to buy Seagate Technology and took the disk drive company private.

The entry of Silver Lake Partners, KKR and Technology Crossover Ventures as strategic investors will allow GoDaddy to ramp up its international expansion and positions the company to grow through acquisitions.
At A Glance

Silver Lake is the global leader in technology investing, with more than $39 billion in combined assets under management and committed capital and a team of approximately 100 investment and value creation professionals located around the world. Today Silver Lake's portfolio of investments collectively generates more than $142 billion of revenue annually and employs more than 300,000 people globally.

 

 

For a complete list of all Silver Lake portfolio companies, please click the Portfolio tab. It should not be assumed that all investments mentioned here or made in the future will be profitable. The awards and rankings shown may not be representative of any one investor’s experience because not all Silver Lake funds necessarily made investments similar to those on which the award or ranking was based.