Silver Lake Sumeru in debut tech deal

Silver Lake’s middle-market technology fund, currently reported to be raising an inaugural $1 billion, has done its first deal with the acquisition of mobile phone marketing company Mobile Messenger.

Silver Lake Sumeru, the nearly 1-year-old middle-market technology arm of private equity firm Silver Lake Partners, has done its debut deal with the acquisition of Mobile Messenger.

The firm paid an undisclosed amount for the privately held mobile phone marketing company, which was founded in 1999 and has operations in the US, Canada, Australia, New Zealand and the UK.

Ajay Shah

Sumeru was brought under Silver Lake’s umbrella last December, when the Silicon Valley buyout firm absorbed Shah Capital, a tech-focussed private equity firm founded in 2004 by California entrepreneur Ajay Shah.

Shah now heads Sumeru, which sources say is targeting $1 billion (€707 million) for its debut fund, as parent Silver Lake raises $10 billion for its fourth buyout vehicle. A spokeswoman for the firm declined to comment on fundraising.

According to a document from the California Public Employees' Retirement System, which has committed $120 million to the Sumeru vehicle, the middle-market fund's 12 investment professionals will build a portfolio of eight to 10 companies with enterprise values ranging between $50 million and $500 million.

Montgomery & Co. was financial advisor to Mobile Messenger, while its legal advisor was Sheppard, Mullin, Richter & Hampton. Sumeru was advised by Simpson Thacher & Bartlett.