Silver Lake, the largest technology-focused private-equity firm, cut the target amount for the clean-technology fund it set out to raise early last year with the backing of George Soros, according to two people familiar with the situation.
The firm lowered its goal for Silver Lake Kraftwerk Fund LP to $750 million from $1 billion, the people said. Silver Lake, which started marketing the fund the first half of last year, had raised $302 million as of July, according to a filing with the U.S. Securities and Exchange Commission.
Clean-technology funds attracted $4.3 billion last year, down from $8.8 billion in 2009, according to Preqin Ltd. Most of the Silver Lake Kraftwerk team hasn’t previously worked together, meaning they don’t have the track record as a group that many investors are looking for before committing money.
Soros Fund Management LLC agreed to invest $300 million in the fund, according to a May 2011 presentation. The SEC filing didn’t say whether some of the capital raised so far was from Soros. The filing listed the total offering amount of the fund at $1.25 billion.
Charlotte McCrum, a spokeswoman at Brunswick Group, declined to comment on behalf of Silver Lake.
The Silver Lake Kraftwerk team is led by Adam Grosser, who previously was a general partner at Foundation Capital. The group also includes Cathy Zoi, who worked at the U.S. Department of Energy, and Bryce Lee, formerly Credit Suisse Group AG’s head of technology investment banking in the Americas.
Steffan Tomlinson, who was chief administrative officer at Silver Lake Kraftwerk, left in September 2011, according to a biography posted on the website of Palo Alto Networks Inc., where he is chief financial officer.
The fund completed its first deal in February, investing in SolarCity Corp., a developer of rooftop solar power systems.
The new fund will target companies developing technology that makes energy production more efficient, reduces waste and emissions and overhauls aging infrastructure. It intends to invest in later-stage companies that are close to an initial public offering, avoiding sometimes long times to exit for capital-intensive clean energy investments.
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