Mubadala to invest $2bln in U.S. private equity firm Silver Lake

As part of a 25-year investment strategy

  
A general view of the city skyline at sunset from Dhow Harbour on February 5, 2015 in Abu Dhabi, United Arab Emirates.

A general view of the city skyline at sunset from Dhow Harbour on February 5, 2015 in Abu Dhabi, United Arab Emirates.

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Abu Dhabi state fund Mubadala Investment Co is investing $2 billion in private equity firm Silver Lake as part of a 25-year investment strategy, the companies said on Wednesday. 

The exact terms of the deal were not disclosed, but the companies said Mubadala will acquire 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.

Dyal, which acquired a stake of less than 10% in Silver Lake in 2016, will retain roughly half of its original investment.

Buyout funds typically have a 10-year time frame to deploy capital, but under the terms of this deal, Silver Lake will have 25 years to invest the funds.

"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," said Silver Lake Co-CEOs Egon Durban and Greg Mondre in the statement.

Mubadala, which is also a significant investor in SoftBank's first Vision Fund, has been investing in global tech companies and tech-focused funds for over 10 years.

It made its first major global tech investment in 2007 when it bought a stake in chipmaker Advanced Micro Devices.

(Reporting by Niket Nishant in Bengaluru; Editing by Anil D'Silva) ((Niket.Nishant@thomsonreuters.com;))