Reliance Jio-Silver Lake Rs 5,655.75 cr deal: All you need to know about American private equity giant

Silver Lake Partners-the American private equity giant, has bought stake in

Launched in 1999 as a specialist firm focused on technology company investments, Silver Lake has maintained a strategic discipline since its founding and engages in a synergistic and collaborative approach to investing across investment strategies, the company’s website said.

The fund has three investment strategies:

  • Silver Lake Partners (SLP) engages as a strategic market participant via large-scale investments in technology, technology-enabled and related growth businesses.
  • Silver Lake Alpine (SLA) targets structured equity and debt investment opportunities in large-cap technology, technology-enabled and related growth businesses.
  • Silver Lake Waterman (SLW) offers flexible growth capital to later-stage private companies in the technology, technology-enabled and related growth industries.

On 22 April, Facebook bought 9.9 percent stake in Jio Platforms for Rs 43,574 crore. That deal valued Jio at Rs 4.62 lakh crore ($65.95 billion).

Key things about Silver Lake

Silver Lake made its debut investment in India in 2013 when it picked up a minority stake in Bangalore based Ekta Software which builds software for commodity trading, according to a report in Moneycontrol.

The firm was launched in 1999 as a specialist firm focused on technology company investments.

Its portfolio of investments collectively generates revenues of more than $204 billion annually.

Its portfolio includes Twitter, AirBnb, Alibaba Group, Ant Financial, Didi Chuxing , Motorola Solutions and City Football Group.

It sold Skype to Microsoft for $8.5 bn in 2011 in one of the most successful private equity exits in history.

Since its launch three years ago, Jio, led by billionaire Mukesh Ambani, has grown at a sprinter’s pace to become India’s largest telecom company. It has accumulated some 340 million customers through a barrage of innovations, including offering cut-throat mobile internet prices and a diverse suite of products and including chat services, movies, games and music.

The deal will help reduce RIL’s debt burden, which bulged due to the breakneck expansion of Jio and other businesses. Ambani invested around $40 billion to launch Jio in 2016. RIL is also the largest retail player in India thanks to a series of aggressive expansionary moves into consumer-facing businesses such as e-commerce and grocery.

On 30 April, Reliance Industries said it will achieve zero net debt status ahead of schedule, as it announced its quarterly and annual results.

In addition to the investment by Facebook, the company said, it has received strong interest from other strategic and financial investors and is in good shape to announce a similar-sized investment in the coming months.

(Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Firstpost)

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