VIDEO: Silver Lake's Glenn Hutchins

Hutchins, who launched Silver Lake in 1999, says that the IT sector of decades past - which was once the playground for VC funds and incubators - has evolved to favor private equity funds as a result of stymied growth, which has narrowed the pool of strong investment candidates.

"For the venture capitalists the IT industry isn't growing as rapidly today as is was 20 years ago so it's hard for the venture capitalists to have as many IT spaces as many and as successful as investments that they've had in the past," he says. "For Silver Lake, that's actually a pretty good thing because the technology economy is still growing two, two-and-a-half, maybe three times greater than the rest of the economy. It's a good thing for people who are investing in more mature companies and it's much more of a challenge for people in the venture space."

Hutchins, who spoke at AVCJ's Private Equity and Venture Capital Forum in November, further says the he anticipates a rise of "indigenous innovation" in developing markets, specifically forecasting opportunities in the energy and cleantech spaces, rather than basic internet and IT technologies.

Hutchins will continue his role as co-head of Silver Lake despite his appointment as Class B directors to the New York Fed, a source close to Silver Lake confirms to AVCJ. Hutchins was named one of two new directors to the Fed, effective Wednesday, and will serve the remaining term of Pfizer's form CEO Jeffrey Kindler, which runs through December 2012.

The second appointed director is Terry Lundgren, chairman of Macy's department store. He will serve the unexpired portion of a three-year term ending December 11, 2011 that was held by Jeffrey Immelt, CEO of General Electric.

Hutchins previously served as a special advisor on economic and healthcare policy to the Clinton administration. He is the vice chairman of the board of the Brookings Institution; a director of the Harvard Management Company; a chairman of the National Advisory Board of the W.E.B. Dubois Institute for African and African-American Research at Harvard; and is a member of the Investors Advisory Committee on Financial Markets of the Federal Reserve Bank of New York.

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