- Mixed Agency Will Supply Strategic Household and Firm Advisory Providers, a Differentiated Funding Platform, and an Unparalleled International Community of Enterprise Homeowners and Founders
- Byron Trott and Gregg Lemkau to Function Co-Chief Government Officers; Trott to Function Chairman of the Mixed Agency; Michael Dell to Develop into Chairman of the Advisory Board
CHICAGO and NEW YORK, Oct. 20, 2022 /PRNewswire/ — BDT & Firm Holdings, LLC (“BDT“) and MSD Companions, L.P. (“MSD“) in the present day introduced that they’ve entered right into a definitive enterprise mixture settlement below which they may create the preeminent advisory and funding agency serving the distinct wants of family- and founder-led enterprise house owners and strategic, long-term traders. The mixture will unite BDT, the service provider financial institution to the intently held, based in 2009 by Byron Trott, and MSD, a premier, long-term-oriented funding agency that invests on behalf of like-minded traders, together with Dell Applied sciences Founder Michael Dell and his household.
The agency will proceed to be uniquely positioned as a trusted advisor and capital accomplice to intently held companies and their house owners, serving to them to pursue their strategic and monetary targets. The mixture brings collectively two groups with robust management, experience, and monitor data of their respective funding methods, which is able to allow the agency to supply a differentiated set of funding alternatives tailor-made to traders looking for long-term, risk-adjusted compounding returns. The mixed agency’s choices will embody:
- Trusted Recommendation and Capital: The agency will provide strategic household and firm advisory providers and long-term capital by means of its affiliated funds to assist purchasers maintain and develop their companies, handle their legacies, and create social affect. Along with conventional firm advisory, together with M&A and Capital Construction Optimization, the agency gives specialised advisory providers throughout Possession and Governance, Belief and Property, Household Workplace, Subsequent Technology Transitions, and Philanthropy.
- Differentiated Funding Platform Throughout Non-public Capital, Credit score, Actual Property, and Development Fairness: The mixed agency will search to supply traders with high-quality funding choices in 4 core areas:
- Non-public Capital: The agency will search to supply differentiated, aligned personal capital to enterprise house owners, with a give attention to family- and founder-led companies with robust, sturdy fundamentals. In keeping with this technique, BDT Capital Companions has invested greater than $30 billion throughout 43 portfolio firms by means of its affiliated funding funds and co-investments from its international investor base, greater than 90% of which includes lively enterprise house owners, their household workplaces, and foundations. MSD Non-public Capital has taken an identical method, investing $3 billion in 12 firms, supporting founders, entrepreneurs, and administration groups with the aim of constructing excellent companies and creating long-term worth.
- Credit score: The agency shall be a inventive financing options supplier able to investing throughout capital constructions for a broad vary of companies all through market sectors and geographies. MSD Credit score is a versatile financing accomplice that makes use of its differentiated sourcing community, deep market experience and structuring expertise with the aim of delivering long-term capital appreciation for traders. Over the past 10 years, the MSD Credit score group has deployed greater than $20 billion throughout personal and public credit score investments, most popular devices, and actual estate-related alternatives.
- Actual Property: The agency’s actual property fairness investments will proceed to give attention to advanced, large-scale, high-quality property in excessive barrier-to-entry places. MSD is a most popular accomplice with a long-duration mindset and important operational and execution capabilities, which MSD believes assist drive worth for traders throughout asset lessons. The MSD Actual Property group has invested in additional than 30 actual property transactions with a present portfolio worth of roughly $10 billion.
- Development Fairness: The agency will spend money on personal high-growth firms with confirmed enterprise fashions and enormous market alternatives, principally within the know-how, client, and healthcare sectors. MSD Development’s method is outlined by the affected person, long-term nature of its capital and its potential to be a versatile, value-added accomplice investing alongside distinctive founder-led companies and world-class administration groups.
- Unparalleled International Community: The agency will preserve its world-class community of greater than 250 business-owning advisory purchasers and fund traders, enabling them to profit from the knowledge and expertise of different entrepreneurs, enterprise house owners, and leaders of remarkable intently held firms, in addition to their household workplaces and foundations.
The agency shall be distinguished by its secure, long-term capital base and its shared tradition of aligned investing. BDT and its worker house owners are the biggest investor in combination throughout all BDT funds. Equally, MSD workers are the agency’s largest investor in combination outdoors of the Dell household, representing almost 15% of non-Dell capital invested in the present day. This core precept unites the companies and drives vital alignment with traders as they search to ship long-term, risk-adjusted returns. Since 2010, BDT and MSD have collectively deployed greater than $50 billion in whole capital throughout their funding methods.
“Over the previous 13 years, we have now constructed BDT as a differentiated service provider financial institution to align to the wants of our business-owning purchasers and traders, offering trusted recommendation, long-term, risk-adjusted capital, and an unparalleled international community. Since our founding in 2009, our goal has by no means been to be the largest agency, however fairly to be the perfect at what we do – that very same precept holds true in the present day. MSD shares BDT’s dedication to excellence and excessive integrity, and has developed engaging, extremely complementary funding methods. We’re thrilled to mix and meaningfully improve our funding and advisory choices to business-owning households and founders all over the world,” stated Byron Trott, Founder, Chairman and CEO, BDT. “Gregg Lemkau is a unprecedented chief and advisor, and Michael Dell is likely one of the world’s most iconic founders and know-how visionaries. We’re excited to work with them and our gifted groups on this subsequent chapter of our evolution.”
Gregg Lemkau, CEO, MSD, added, “MSD and BDT are remarkably complementary companies. We share comparable cultures and approaches to investing, and we’re each targeted on serving strategic traders who search to persistently compound capital over the long-term. As we had been seeking to broaden MSD’s potential to supply superior options to our funding companions, we noticed an ideal match in BDT’s capabilities and international investor base. I’ve had the pleasure of figuring out Byron for almost three many years, and I stay up for working alongside him to comprehend the potential of our mixed agency for the advantage of our purchasers.”
“I’m very excited in regards to the mixture of those unimaginable companies,” stated Michael Dell. “The MSD group has offered excellent risk-adjusted returns for my household over the previous 25 years, and I’m terribly happy with what they’ve completed. I’m an excellent admirer of what Byron and the BDT group have constructed by offering complete options for households like mine, and the chance to mix is extraordinarily compelling. Most significantly, the cultures of the 2 companies are very constant, and I’m dedicated to supporting Gregg, Byron and their mixed group in persevering with to construct a particular funding agency to final for generations.”
Upon shut, Trott and Lemkau will function Co-Chief Government Officers, Trott will even function Chairman of the mixed agency, and Dell will turn out to be Chairman of the Advisory Board. Dan Jester and San Orr will function Presidents. Brendan Rogers will function Chief Working Officer. The mixed agency shall be co-headquartered in Chicago and New York Metropolis, with workplaces additionally positioned in Dallas, Denver, Los Angeles, Palm Seashore, San Francisco, London, and Frankfurt.
The transaction is predicted to be accomplished in early 2023. Monetary phrases weren’t disclosed. Ardea Companions LP served because the unique monetary advisor to the transaction.
Please go to the transaction web site at BDTMSD.com.
About BDT & Firm
Established in 2009, BDT & Firm is a service provider financial institution that gives recommendation and long-term capital by means of its affiliated funds to assist family- and founder-led companies pursue their strategic and monetary targets. The firm works with the house owners and leaders of those intently held companies to find inventive options to their most advanced points, whereas additionally offering entry to its world-class community. The firm’s affiliate, BDT Capital Companions, has deployed greater than $30 billion in capital by means of its funding funds and co-investments by its international investor base. For extra info, go to bdtcapital.com.
About MSD Companions
MSD Companions, L.P. is a number one funding agency targeted on maximizing long-term capital appreciation throughout its core areas of investing experience – Credit score, Development, Non-public Capital and Actual Property. The agency deploys capital on behalf of Dell Applied sciences founder and CEO Michael Dell and his household, in addition to different like-minded, long-term-oriented traders. MSD Companions, which operates from workplaces in New York, Santa Monica and West Palm Seashore, manages in extra of $20 billion. For additional details about MSD Companions, please see msdpartners.com.
Contacts:
BDT & Firm
Sara Evans / Matthew Glasser
T: (312) 529-6548 / (312) 385-2883
E: [email protected]
MSD Companions
Todd Fogarty / Anntal Silver
T: (212) 521-4854 / (212) 521-4849
E: [email protected] / [email protected]
SOURCE BDT & Firm Holdings, LLC; MSD Companions, L.P.
