(Reuters) - Abu Dhabi sovereign wealth fund Mubadala Investment Co is investing $2 billion in a 25-year strategy plan led by U.S. private equity firm Silver Lake, the companies said on Wednesday.
Mubadala has also agreed to buy a minority stake in Silver Lake from Dyal Capital Partners, a unit of U.S.-based investment management firm Neuberger Berman, through a secondary transaction. (refini.tv/3jhRI3U)
Dyal, which acquired a stake of less than 10% in Silver Lake in 2016, will retain roughly half of its original investment.
Mubadala is well known as a key investor in the tech-focused Vision Fund, run by Japan’s SoftBank, and has been investing in global tech companies and tech-oriented funds for over 10 years.
Under the terms of the deal, Silver Lake, which currently manages around $60 billion in capital, will have 25 years to invest the capital provided by Mubadala.
“The creative structure of this new strategy provides significant added flexibility for Silver Lake to capitalize on a wide range of investment opportunities, including those outside the mandates of our existing funds,” Silver Lake Co-CEOs Egon Durban and Greg Mondre said in a statement.
The move comes at a time when Silver Lake has been deploying vast amounts of capital to acquire stakes in large internet firms and is close to raising a new fund of more than $18 billion, according to an August filing.
This year alone, Silver Lake has poured billions of dollars into Twitter, Airbnb, Expedia and India’s Reliance Jio Platforms.
Mubadala made its first major global tech investment in 2007 when it bought a stake in chipmaker Advanced Micro Devices AMD.O.
Reporting by Niket Nishant in Bengaluru; Editing by Anil D’Silva, Kirsten Donovan
Our Standards: The Thomson Reuters Trust Principles.