Private equity firm Silver Lake is joining Michael Dell, sovereign wealth fund Temasek and Dell’s family investing office in the $US67 billion buyout of EMC Corp.
The tech-focused LBO shop has turned in impressive returns since its founding about 16 years ago, in part fuelled by success on transactions like Skype, Virtu Financial and Alibaba Group.
That initial investment delivered a 90% paper gain by November last year, according to reports at the time.
As Dan Primack at Fortune points out, that would put the total amount of equity Silver Lake has in Dell-EMC at more than $US3 billion.
To put that into perspective, it is equivalent to 30% of the $US10 billion the firm raised to support the initial Dell deal in 2013. If that were all from a single fund — that would be unheard of.
Silver Lake did not comment in time for publication.
The Dell-EMC merger isn’t just a historic tech deal. It also reflects an ongoing shift between Michael Dell and Silver Lake — the private equity firm his seed capital helped establish at the end of the last century.
Taking Dell private at $US25 billion two years ago represented the biggest deal in Silver Lake’s history.
Now, its involvement in the melding together of two technology industry titans means the private equity firm is doubling down on its massive bet.
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