Glenn Hutchins, David Roux and Jim Davidson, who co-founded Silver Lake in 1999 and built it into the largest technology-focused private equity manager, will reduce their ownership as part of a broader leadership transition, according to two people briefed on the matter.
Silver Lake will form a five-member managing committee, comprising Mr. Davidson and four younger managing directors, according to one of the people. Mr. Roux, the firm’s chairman, and Mr. Hutchins, co-CEO with Mr. Davidson, will play a less active role in day-to-day management, said the people, who asked not to be named because the information is private.
Silver Lake is broadening ownership and reducing reliance on the founders as it prepares to raise its fourth flagship investment pool. Longtime investors, including the $225.5 billion California Public Employees’ Retirement System, Sacramento, which backed Silver Lake since private equity firm’s first and most successful fund in 1999, will have to decide whether to support the younger ranks of deal-makers when the new fund will be formally marketed in February, according to one of the people.
Mr. Davidson is the only member of the current executive management to join the new managing committee. Managing directors Egon Durban, Mike Bingle, Ken Hao and Greg Mondre will join Mr. Davidson on the committee and take a bigger ownership stake, the people said.
Gemma Hart, a spokeswoman for the firm, declined to comment.