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

Silver Lake and its affiliates distributed Dell Technologies Class C Common Stock to various entities and individuals on January 10, 2025, in an in-kind distribution.

Summary

• Silver Lake and its related entities conducted an in-kind distribution of Dell Technologies Class C Common Stock on January 10, 2025.
• The distribution involved several Silver Lake partnerships and affiliates, including SL SPV-2, L.P., Silver Lake Partners IV, L.P., and Silver Lake Partners V DE (AIV), L.P.
• The shares were distributed to various entities and individuals, including employees and managing members of Silver Lake Group, L.L.C. and its affiliates.
• Egon Durban, a director of Dell Technologies and Co-CEO and Managing Member of Silver Lake Group, L.L.C., received shares both directly and indirectly through trusts.
• The transactions were exempt from reporting under Rule 16a-13 of the Exchange Act.

Sentiment

Score: 7

Explanation: The document describes a routine transaction for a private equity firm. There is no indication of positive or negative sentiment, it is a neutral event.

Positives

• The in-kind distribution simplifies the transfer of shares between Silver Lake entities and their affiliates.
• The distribution was exempt from reporting under Rule 16a-13 of the Exchange Act, reducing administrative burden.

Risks

• The document does not explicitly state any risks, but large distributions of shares could potentially impact the market price of Dell Technologies stock if they were to be sold.

Industry Context

This transaction is a common practice for private equity firms like Silver Lake to manage their investments and distribute assets to their partners and affiliates. It does not indicate any change in the underlying business of Dell Technologies.

Comparison to Industry Standards

• In-kind distributions are a standard method for private equity firms to manage their holdings and distribute assets to their limited partners and affiliates.
• Similar transactions are often seen with other large private equity firms such as KKR, Blackstone, and Apollo when they distribute shares of their portfolio companies.
• The exemption from reporting under Rule 16a-13 is a standard regulatory provision that applies to these types of distributions.

Stakeholder Impact

• The distribution of shares may have a minor impact on the overall shareholding structure of Dell Technologies.
• The transaction is not expected to have a significant impact on employees, customers, or suppliers of Dell Technologies.

Key Dates

Keywords

Dell Technologies, Silver Lake, in-kind distribution, Class C Common Stock, Egon Durban, share distribution, SL SPV-2, L.P., Silver Lake Partners IV, L.P., Silver Lake Partners V DE (AIV), L.P.