- Silver Lake is launching a 25-year investment strategy, The Wall Street Journal reported on Tuesday.
- The private-equity giant is becoming even more like Warren Buffett with its longer investing timeframe.
- Silver Lake has invested billions of dollars in Twitter, Airbnb, Expedia, and other businesses during the pandemic, similar to how Buffett handed cash to the likes of Goldman Sachs and General Electric during the 2008 financial crisis.
- The firm has also emulated Buffett by lending money at lofty interest rates and securing equity warrants.
- Visit Business Insider’s homepage for more stories.
Silver Lake pulled from Warren Buffett’s playbook when it injected cash into ailing companies during the coronavirus crash this year. The private-equity giant is emulating the famed investor once again with the launch of a 25-year investment strategy.
Abu Dhabi’s sovereign-wealth fund, Mubadala, is acquiring a sub-5% stake in Silver Lake and contributing $2 billion to the new fund, The Wall Street Journal reported, citing people familiar with the matter.
Silver Lake, which manages more than $60 billion in total assets, has a quarter of a century to employ Mubadala’s cash and realize any gains — more than double the usual 10-year timeframe for private-equity funds, The Journal said.
Read More: UBS says the chances of a Democratic sweep have risen to 50% as Trump and Biden square off in their first debate. These 9 assets will help investors profit if a blue wave comes crashing in.
Buffett, the billionaire CEO of Berkshire Hathaway, has championed long-term investing for decades and held stocks such as Coca-Cola for more than 30 years. “Our favorite holding period is forever,” Buffett wrote in his 1988 shareholder letter.
Silver Lake hasn’t just adopted a Buffett-esque investment horizon, it has also taken up his mantle