Silver Lake raises over $2bn for debut credit, structured equity fund

The new vehicle, which was launched last year, comes as the firm is raising a separate tech-growth vehicle – its third in that fund series.

Silver Lake collected around $2.5 billion for its first-ever credit and structured equity fund, which makes non-control investments in tech companies, people with knowledge of the firm told Private Debt Investor sister publication Buyouts.

Whether the fund, Silver Lake Alpine, is raising more capital or has finished fundraising is unclear. The firm has been in the market for at least last year, one of the sources said. In September, Silver Lake filed a Form D for Alpine Fund, which did not list a target.

Alpine targets large-cap technology, tech-enabled and related growth companies, according to Silver Lake’s Form ADV. It will focus largely on the downside-protected portion of a company’s capital structure, but will also invest with equity components like convertible securities, options, warrants and preferred stock, the Form ADV said.

Silver Lake “believes that … Alpine’s flexible investment program will allow it to selectively structure investments in target companies with potential yield from current or accrued income and a lower risk of principal loss than a traditional private equity investment, coupled with upside potential over an expected two-to-five-plus-year holding period on average”, the Form ADV said.

The fund has made at least two investments so far, in AMC and Cornerstone, which provide human capital management software, Silver Lake’s website shows.

The fund’s Form D lists several executives, including managing partners Michael Bingle, Kenneth Hao, Egon Durban and Gregory Mondre.

The fund is run by Silver Lake investment leadership, using an “integrated team approach”, the website says.

Silver Lake is in the market with its third tech-growth fund, called Waterman, targeting $750 million, Buyouts reported. That fund targets investments in pre-IPO, later-stage growth technology companies.

Shawn O’Neill leads Waterman as managing director and group head. Other managing directors include Rick Stubblefield and Brian Crews.

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

This article, written by Chris Witkowsky, was first published by Buyouts.