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Silver Lake investors
double down on Dell
October 28, 2013: 4:31
Silver Lake discloses $350 million "co-investment" on Dell.
FORTUNE -- It seems that
Carl Icahn may not be the only one who thinks Michael Dell got a
bargain by agreeing to buy his eponymous company for $24.9 billion.
Silver Lake Partners, the
private equity firm working with Michael Dell, has disclosed in a
regulatory filing that some of its limited partners are making an
aggregate co-investment of $350 million. In other words, some
institutions that already have exposure to Dell (DELL)
via their existing commitments to Silver Lake are effectively doubling
down (or more) on this particular deal.
Silver Lake originally
agreed to invest just over $1.4 billion into Dell our of its $1.03
billion fourth fund, so this means the fund itself only will have
around $1.05 billion of exposure. That's an important number, since
private equity funds try not to let any one investment account for
more than 10% of their total capital.
A source familiar with the
situation says that LP co-invest interest was "heavy" and
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