Silver Lake spin-out Luminate talks to LPs about debut fund

Luminate Capital Partners, a spin-out from middle market-focused Silver Lake Sumeru, has been talking to limited partners about its debut fund, according to three people with knowledge of the situation.

The firm has been talking about a software-focused fund with a target around $200 million, according to one of the people. Luminate has not engaged a placement agent on the fundraising, another source said.

[contextly_sidebar id=”MQbKC3HgNQZPSW6HTvWJX6PKwPDMriII”]Luminate was launched earlier this year by John Heyman, formerly CEO of Radiant Systems, and Hollie Moore Haynes, who joined Silver Lake in 1999 and co-founded its middle-market fund Silver Lake Sumeru in 2007.

Haynes led several deals at Silver Lake Sumeru, including investments in finance technology firm Blackline Systems, security technology company i2 (which the firm sold to IBM in 2011), healthcare technology company Medseek and big data firm Talend.

Blackline was said to have garnered expressions of interest from buyers recently and Silver Lake sold part of its stake in the company at 3x cost, one of the sources said. Silver Lake did not return a request for comment.

Silver Lake Sumeru decided last year to not raise a follow-up vehicle to its Silver Lake Sumeru Fund LP, a $1.1 billion vehicle. Ajay Shah, a founding managing partner of Silver Lake Sumeru, decided to focus on charitable work in India, which caused Silver Lake to reconsider the group, Buyouts previously reported. The Sumeru fund produced a 10.8 percent IRR and a 1.4x multiple as of March 31, according to the California Public Employees’ Retirement System, an LP in the fund.

Kyle Ryland, a managing director at Silver Lake, is leading a separate firm under the name Sumeru but without the Silver Lake brand in front of it, Buyouts has reported.

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