University of Michigan re-ups $30m to Silver Lake(2)

Silver Lake is targeting $7.5bn for its latest vehicle, which will use a variety of investment strategies for technology and related sector deals.

The University of Michigan Board of Regents investment staff will report a $30 million re-up to Silver Lake Partners IV at the board’s Thursday meeting, according to documents. 

The University of Michigan board allows its investment staff to commit to new funds offered by fund managers with which it already has a relationship, so long as the new fund has the same investment strategy and personnel as the previous vehicle. 

The University has committed $80 million across three previous Silver Lake funds, including $30 million to Fund IV’s predecessor, according to documents. 

Fund III had generated a 1.46x investment multiple and 17.9 percent net internal rate of return as of 30 June, according to the California Public Employees’ Retirement System.

Silver Lake is targeting $7.5 billion for Fund IV. Silver Lake pursues various strategies for investments in the technology sector, including leveraged buyouts, growth investments, PIPEs and debt-focused transactions. 

Earlier this month, Silver Lake announced a $24.4 billion take-private of PC manufacturer Dell, the largest single buyout since The Blackstone Group’s $26 billion acquisition of Hilton Hotels in 2007.  

The Dell deal includes debt financing from BofA Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets, according to Dell. Reports put the overall debt package at around $15 billion. Existing debt has been rolled over into the new company, the statement said. 

In addition to its Silver Lake re-up, the University also disclosed a $5 million commitment to Sequoia Capital US Venture Fund XIV and a $4 million commitment to Sequoia Capital China Venture Fund IV, according to documents. The University has invested $117 million across 11 previous Sequoia commitments.