Meet Silver Lake, the private equity firm making some major investments

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00:00Have you ever heard of Silver Lake?

00:02It's a private equity firm making big moves and scooping up some major companies.

00:09Silver Lake began in 1999, around the same time many private equity firms began coming around.

00:15Now those firms basically take a pool of money from wealthy people

00:19to purchase stakes in privately held companies or purchase publicly traded companies.

00:24You can think of this as literally a private investment and the equity of the business.

00:28So let's say if you're an investor and I'm running a company and you want to invest in my company,

00:34I get the financing and you get the returns.

00:37So this is basically a good deal for the both of us.

00:40Silver Lake currently has more than $110 billion of combined assets.

00:45Their most recent was being a part of the purchase of video game company Electronic Arts.

00:51Now that's just one of the dozens of companies they've bought or invested in,

00:54including Waymo, Airbnb, Dell Technologies, and more.

00:59They also have heavily invested in several sports companies.

01:02Now firms like Silver Lake are a new way for companies to get money,

01:06as opposed to traditional means like a bank.

01:08The end goal of all of these private equity funds is, in my opinion,

01:12a lot of it is to make high returns, right?

01:15And why do they need these high returns?

01:17Because they need to justify their investors.

01:20And investors in these private equity funds are all sorts of big institutional investors.

01:27Take Electronic Arts as an example.

01:30Each shareholder got $210 per share that they held, making the top shareholders extremely wealthy.

01:36Then maybe from the cash I get, I can start another company and then do this process again.

01:41That's how I become a serial entrepreneur, right?

01:43Which I see happening a lot.

01:45Not only in media, but I would say technology and healthcare.

01:53So what if you're not a top shareholder or executive in your company

01:57and are an employee whose company is being bought by private equity?

02:01As an employee, I would be very worried.

02:05And it's not only about my job, right?

02:07It's also about the management changing.

02:08So let's say I have my job, but the management changes.

02:11And now suddenly I have a new boss.

02:13I am under a different payroll system, for example.

02:16And then I have different expectations.

02:18And then again, there's like, you know, this pressure of,

02:23am I doing the right thing in my job?

02:25And now suddenly the goalpost changes.

02:28Silver Lake did not respond to Straight Arrow News' request for comment.

02:32For Straight Arrow News, I'm Lauren Keenan.

02:34If you want more on this story, download the Straight Arrow News app or visit san.com.

02:41Just ask yourself, please.

02:45Today's 2012 Benito is where you can come further.

02:46soccer team is local.

02:46Everybody prays that you can come further.

02:48And now there's like, quoi?

02:49I think it's a good idea of doing it right now since you can overcome it.

02:49In yes, we are not 볼ured or do I believe in trouble?

02:51Whatever they may be doing in trouble.

02:56What the heck is doing here?

02:57I will just do something from scratch.

02:59Like Iannock and Iapp Ortweiss.

03:04What the heck is adding?

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