Silver Lake Kraftwerk seals first non-US investment

The partnership between Silver Lake and billionaire George Soros will expand German recycled plastics company friedola Tech by opening a new manufacturing facility in the US.

Silver Lake Kraftwerk is betting on the US market for its first non-US investment.

The partnership between Silver Lake and billionaire George Soros, Silver Lake Kraftwerk will invest roughly $40 million for a majority stake in German-based recycled plastics manufacturer friedola Tech, which the firm plans to expand by opening a new manufacturing facility in South Carolina.

friedola Tech produces environmentally-friendly recycled plastic products related to improved emissions and fuel economy standards in the automotive and packaging industries.  Silver Lake Kraftwerk is co-investing in the business alongside Silicon Valley-based venture capital firm Kleiner Perkins Caufield & Byers. The two firms are purchasing the company from London- and Munich-based private equity firm WHEB Partners, which will remain a shareholder in the business.

“There is a growing global market for engineered plastics and industrial products that are lightweight and reusable,” partner at Silver Lake Kraftwerk Josh Raffaelli said in a statement.

The firm was unavailable for comment at press time.

Silver Lake Kraftwerk is making the investment from its Silver Lake Kraftwerk Fund, which had raised more than $300 million toward a $1.25 billion target as of July, according to documents filed with the US Securities and Exchange Commission.

The transaction marks the first co-investment between Kleiner Perkins and Silver Lake Kraftwerk, which provides growth capital to companies creating ways to increase energy efficiency, reduce waste and emissions and harness renewable energy. It is Silver Lake Kraftwerk's second-ever investment, following an $81 million growth capital investment in solar electricity company SolarCIty alongside Valor Equity Partners in February.

Silver Lake Kraftwerk is Silver Lake’s fourth investment strategy around which it has built an investment group. The firm has its main, large-cap investment business Silver Lake Partners, its mid-market investment group Silver Lake Sumeru and its credit-focused arm called Silver Lake Capital.