Mubadala Investment Company and US-based private equity manager Silver Lake Capital are to partner on a long-term investment strategy backed by a $2 billion investment from Abu Dhabi’s strategic investment fund.

The strategy is based on a unique, 25-year lifecycle, which is much longer than the typical 7-10 year approach taken by private equity firms, and will be flexible in terms of investment structures, geographies and industries, a joint statement from the firms said on Wednesday. Mubadala has also taken a minority stake in Silver Lake Capital, which specialises in technology investments. The terms for that deal were not publicly disclosed.

“As an institution that has long seen the potential of investing in the technology sector, we are excited to partner with Silver Lake, one of the world’s most respected technology investors, to capitalise on major opportunities within and beyond the industry,” said Khaldoon Al Mubarak, managing director and chief executive of Mubadala.

“Technology is the bedrock of the global economy, and fundamental to all other sectors that are being significantly digitalised. Our goal is to be well positioned to take advantage of this accelerated digital transformation and its potential, and we believe Silver Lake is the right partner and that this is an optimal structure for us.”

Silver Lake Capital has more than $60bn of assets under management and committed capital.

More to follow…