Silver Lake takes stake in breakdown firm RAC
The RAC this morning said that private equity giant Silver Lake would take a stake in the breakdown assistance firm.
The California-based investor will join GIC and CVC Strategic Opportunities I as a co-shareholder in the company.
RAC chief executive Dave Hobday said that the new investment offered the firm a “fantastic opportunity to accelerate our investment trajectory and provide more digitally enabled products, while continuing to deliver an even better service to our breakdown and insurance members”.
GIC and CVC bought into RAC in 2014 and 2016 respectively, and will remain major shareholders alongside Silver Lake.
Since 2016, the firm has added nearly 4m members, with its latest earnings coming in at £249m.
Silver Lake managing director Simon Patterson said: “RAC is a strong brand, and the company has been known for a long time for its quality of service and focus on the customer.
“CEO Dave Hobday and his team have adopted an ambitious plan to invest in digital technologies to further improve the offering and relationships with customers, and we look forward to assisting them implement it.”
With more than $88bn in assets under management, Silver Lake is one of the biggest technology investors in the world.