Private equity firms Silver Lake Partners, Asia Alternative Management and Siguler Guff, as well as Singapore sovereign wealth fund Temasek Holdings, have reaped billions of dollars in paper gains after Chinese e-commerce firm Alibaba Group Holding Ltd. went public Friday.
Silver Lake, for example, sold 4.1 million shares at the initial public offering, leaving it with 54.8 million shares representing 2.5% of outstanding shares, Securities and Exchange Commission documents show. This leaves Silver Lake with a roughly $4.5 billion profit on paper.
Alibaba's opening price was $92.70 a share in its first trading day on the New York Stock Exchange; the stock closed at $93.89. The IPO shares had been priced by Alibaba at $68 a share.
Silver Lake Partners III made close to $500 million on two investments in Alibaba in 2011 and 2012, sources said. Investors in the fund are the $298 billion California Public Employees' Retirement System, $104 billion Washington State Investment Board, $63.8 billion Minnesota State Board of Investment, $41.7 billion Illinois Teachers' Retirement System and $17.2 billion Indiana Public Employees' Retirement Fund.
Asia Alternatives Capital Partners III investors include the $180.7 billion New York State Common Retirement Fund, $25 billion Pennsylvania State Employees' Retirement System and $15 billion New Mexico State Investment Council.
Siguler Guff BRIC Opportunities Fund III investors include the $2.05 billionBaltimore City Fire & Police Employees' Retirement System.
Pavilion Capital, a subsidiary of Temasek's total portfolio valued at S$215 billion (US$172 billion), sold 645,000 shares, leaving it with 1.29 million shares or 0.1%.Jason Golz, Silver Lake spokesman declined comment.