Silver Lake Lowers Target on Kraftwerk Fund
Silver Lake has cut the target on the clean technology fund it set out to raise early last year in partnership with George Soros to $750 million from $1 billion, according to two people familiar with the situation.
Silver Lake, which started marketing Silver Lake Kraftwerk Fund LP in the first half of last year, had raised $302.4 million as of July, according to a Securities and Exchange Commission filing. That filing listed the total offering amount as $1.25 billion. Soros’s Soros Fund Management LLC committed $300 million to the fund, $50 million of which represents a GP commitment, a marketing document shows. Charlotte McCrum, a spokeswoman at Brunswick Group, declined to comment on behalf of Silver Lake.
Many private equity firms – particularly new ones – are having a tough time raising capital from limited partners who have become more selective since the financial crisis. Most of the Silver Lake Kraftwerk team has not previously worked together, a particularly bright red flag for prospective investors.