Mubadala Investment Company, the sovereign investment fund of the Abu Dhabi government, and Silver Lake, the global technology company, announced today that they have strengthened their existing partnership by launching a long-term investment strategy led by Silver Lake, with an investment of two billion US dollars ( 7.35 billion dirhams) from Mubadala.
The new strategy is characterized by a long-term investment range of up to 25 years, and is designed to allow flexible investment in various investment structures, geographical regions and sectors, as well as in all forms of financing and investment opportunities of all stages, in line with Silver Lake’s focus on building and developing successful companies Benefit all partners.
In addition to participating in the development of the new strategy, Mubadala acquired a minority stake in Silver Lake.
The two parties have previously worked together in a number of investments such as Endeavor, Waymo (a self-driving car technology company affiliated with Alphabet), and India’s Geo Platforms.
Commenting on this, Khaldoon Khalifa Al Mubarak, Group Chief Executive Officer and Managing Director of Mubadala, said: “As a global investor, we recognized from an early age the distinct opportunities offered by investing in the technology sector. Technology, to take advantage of investment opportunities in this sector and beyond.
Al-Mubarak added, “Technology has become the main tributary of the global economy, and one of the basic ingredients for all other sectors, which is now witnessing a major shift towards adopting digital technology in their business.”
He added, “We seek to be ready to take advantage of this accelerated shift towards digital technology and the economic opportunities arising from that. We believe that Silver Lake is the right partner and that this investment model is the best way to achieve these goals.”
Egon Durban and Greg Mondry, CEO of Silver Lake, said on behalf of the company’s executive partners: “We are delighted to strengthen our relationship with the distinguished team at Mubadala, which aligns with us in our vision of long-term investment in key business sectors. We have enabled us to support Mubadala. From launching an innovative long-term strategy that is unprecedented in terms of its timeframe, which extends over several decades, and embodies our commitment to our subsidiaries that will achieve great strategic benefits and exceptional results over a long period of time.
The innovative structure of this new strategy provides more flexibility for Silver Lake, enabling it to take advantage of a wide range of investment opportunities, including those outside the scope of our current financing funds.
The launch of this new partnership will also contribute to enhancing and consolidating Silver Lake’s expertise in various fields of technology and other sectors. This partnership also reflects the extent of convergence of visions between the two parties on the importance of partnership, developing the capabilities of human cadres, and social responsibility.
Mubadala began investing in the global technology sector in 2007 with its acquisition of a large stake in AMD, followed by the establishment of Global Foundries, the second largest semiconductor manufacturer in the world.
Through the conclusion of a number of other partnerships, Mubadala was recently able to invest in the “PCI Pharma Services” company specialized in the field of medical technology, in addition to its investment in the areas of joint transportation, e-commerce and the establishment of investment platforms in Silicon Valley, Europe and Abu Dhabi.
Mubadala acquired a minority stake in Silver Lake through a secondary transaction from Dial Capital Partners, a unit of Newberger Bearman. It is worth noting that Dial Capital Partners acquired less than 10% of Silver Lake in 2016.
Michael Rees, CEO of Dial Capital Partners, said: “Silver Lake is one of the best performing companies, and since we acquired our share in it, Silver Lake has succeeded through innovation and development in growing its assets from 23 billion dollars, to reach today more than 60 billion dollars.” .
Rees added: “This deal comes with Mubadala and its commitment to participate in this long-term financing strategy, confirming the distinct capabilities of Silver Lake. It also reflects our conviction in its ability to achieve lucrative returns through the acquisition of stakes in the most prominent investment companies around the world. We look forward to continuing to work with our partners at Silver Lake and Mubadala over the coming years. ”
It is worth noting that the terms of the Mubadala acquisition were not disclosed.
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