Silver Lake Fund IV could hit $10bn hard cap within two weeks


hard-hat-construction-buildingTechnology-focused private equity firm Silver Lake Partners  has reportedly raised almost $10bn for its latest buyout fund amid attempts to take computer giant Dell private in a $24.4bn deal.

Silver Lake was targeting $7.5bn for its fourth fund, but could buck the trend for downsizing funds post-financial crisis by eclipsing the $9.6bn it last raised in 2007, Reuters reported.

It said Silver Lake had exceeded its target thanks to strong investor demand, adding that the fundraise could be completed by the end of the month, citing a person familiar with the matter.

The source added that Silver Lake’s previous funds had delivered an overall net IRR of 18 per cent.

Silver Lake Partners III was performing at a net IRR of 16.85 per cent and cash multiple of 1.4 times at the end of September according to the Washington State Investment Board, which committed $250m to the fund.

The 2003-vintage second fund had a 9.81 per cent net IRR and 1.5 times cash multiple at the same point, the data showed.

Last November AltAssets revealed Silver Lake planned to hold back from making deals through its latest buyout fund until fully investing its previous vehicle.

Fund IV held a $4bn first close in August according to a source with knowledge of the situation, but had decided to concentrate on completing a swift fundraise it only started last summer.

Silver Lake IV is one of the highest-targeting funds actively hunting for commitments, after the $12bn Warburg Pincus XI and Apollo VIII, €9bn Apax VIII and $10bn KKR XI and Carlyle VI.

Last month Dell agreed to a $24.4bn deal to sell itself to a consortium led by founder Michael Dell and private equity firm Silver Lake, marking the largest leveraged buyout since the onset of the global financial crisis.

But billionaire investor Icahn, who last week acquired a six per cent stake in Dell, has been trying to block the deal after arguing it benefits co-founder Michael Dell at the expense of the company’s shareholders.

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