Form 4: Silver Lake Affiliates Distribute Dell Technologies Shares In-Kind

Silver Lake and its affiliates distributed shares of Dell Technologies Class C Common Stock in-kind to various entities and individuals, including a director, Egon Durban.

Summary

• Silver Lake and its related entities, including SLTA V (GP), L.L.C., Silver Lake Technology Associates V, L.P., and Silver Lake Partners V DE (AIV), L.P., conducted in-kind distributions of Dell Technologies Class C Common Stock on January 10, 2025.
• These distributions involved multiple entities within the Silver Lake network, including SL SPV-2, L.P., Silver Lake Partners IV, L.P., and Silver Lake Partners V DE (AIV), L.P.
• The distributions were made pro rata to various employees and managing members of Silver Lake Group or its affiliates, including Egon Durban, a director of Dell Technologies.
• The receipt of these shares was exempt from reporting under Rule 16a-13 of the Exchange Act.
• The filing indicates that the reporting persons may be deemed directors by deputization of the Issuer.

Sentiment

Score: 6

Explanation: The document is a routine filing related to share distributions, which is neither positive nor negative. The sentiment is neutral.

Positives

• The in-kind distribution of shares is a normal part of fund management and does not indicate any negative sentiment towards Dell Technologies.
• The distribution to employees and managing members could be seen as a positive incentive.

Risks

• The filing includes a disclaimer that the reporting persons are not necessarily beneficial owners of all securities covered by the filing, which could indicate a complex ownership structure.
• The complex structure of the distribution could make it difficult to track the ultimate beneficial ownership of the shares.

Management Comments

• The Reporting Persons are jointly filing this Form 4 pursuant to Rule 16a-3(j) under the Exchange Act.
• This filing shall not be deemed an admission that the Reporting Persons are beneficial owners of all securities covered by this filing for purposes of Section 16 of the Exchange Act or otherwise, and each Reporting Person disclaims beneficial ownership of these securities, except to the extent of such Reporting Person's pecuniary interest therein, if any.

Industry Context

This filing is a routine disclosure related to changes in beneficial ownership by major shareholders and is common in the private equity industry. It reflects the ongoing management of investments by Silver Lake.

Comparison to Industry Standards

• Private equity firms like Silver Lake frequently distribute shares in-kind to their limited partners and employees as part of their fund management process.
• These types of transactions are common and are typically disclosed through SEC filings like Form 4.
• The complexity of the ownership structure, with multiple layers of partnerships and LLCs, is also typical for private equity investments.

Stakeholder Impact

• The distribution of shares may have a minor impact on the overall shareholding structure of Dell Technologies.
• The distribution to employees and managing members of Silver Lake could be seen as a positive incentive.

Key Dates

Keywords

Dell Technologies, Silver Lake, in-kind distribution, Class C Common Stock, Egon Durban, beneficial ownership, SEC Form 4, SLTA V (GP), L.L.C., Silver Lake Partners, SL SPV-2, L.P.