“Because we invest in middle market tech companies, typically growth is our primary driver. Then there is an operational or strategic angle. Both come well ahead of leverage. Leverage is usually low on the list, behind those other factors. In fact, 50% of our investments have no leverage.”
Who said it: Ajay Shah, Managing Direct of Silver Lake Sumeru, the part of the US-based technology oriented PE firm that invests in mid-market deals.
In Context: Shah is talking about mid-market deals here and how Silver Lake goes for returns based on steep growth potential and less on leverage. The article also provided his views on what are the hot areas for growth style investment, such as the storage market, including storage management, cloud based storage and solid-state storage. Less interesting is consumer electronics because he believes the sector offers fewer opportunities to create a new brand. Silver Lake is one of the few large-sized PE firms that is specialized in technology buyouts. It was in the news this week as it is rumored to be in talks for a take private of Dell, the US-based PC and computing company.
Where we found it: Forbes