Silver Lake Partners has agreed to make a minority investment of $60 million in Power-One (NASDAQ, PWER). The investment is structured with $23.6 million of convertible preferred stock, $36.4 million of senior convertible notes, and warrants for 8.7 million shares of Power-One common stock. The warrants have a conversion price of $1.33 and the preferred shares and notes have a conversion price of $1.35. The deal also has a provision to limit conversion if Silver Lake's stake in the company rises above 19.9%. Power-One is a provider of power conversion and power management solutions.
Since the start of 2008 private equity firms have invested in 22 other alternative energy equipment companies, according to the PitchBook Platform. As the clean-tech industry and other green energy related companies mature, private equity will certainly increase its investment in the sector. So far the fairly mature solar power sector has received the most investment attention, with investors like Riverside Partners, Hudson Clean Energy Partners and Starwood Capital Group making investments in solar related companies.