Silver Lake Partners co-founder and co-chief executive Glenn Hutchins was appointed a Class B director of the New York Federal Reserve Board of Directors. Hutchins will finish the three-year term vacated by former Pfizer CEO Jeffrey Kindler, which ends 11 December, 2011.
Hutchins, who also serves as chairman of the board for SunGard and director of the NASDAQ OMX Group and Mercury Payment Systems, was selected because of his expertise in the technology sector, New York Fed president and CEO William Dudley said.
Silver Lake, a technology-focused private equity firm headquartered in Menlo Park, California, made headlines when it sold Skype to Microsoft for $8.5 billion earlier this year in “one of the most successful private equity exits in history”. The voice-over-internet protocol business had filed an initial public offering in August, 2010 that valued the company between $3.7 billion and $4.7 billion.
According to a source with knowledge of the appointment, Hutchins’s private equity experience was less of a consideration than his general knowledge of the technology sector.
This is not the first time private equity has had a seat on the New York Fed. Stone Point Capital chairman Stephen Friedman was chairman from 2007 until 7 May, 2009 when he resigned amidst controversy over his ties to Goldman Sachs during the financial meltdown of 2008.
Chairman, president and CEO of Macy’s Terry Lundgren was also appointed to the board for his experience in the retail sector.
Silver Lake was founded in 1999 by Hutchins, Dave Roux and Jim Davidson. The firm controls $14 billion in assets under management