BDT & Company and MSD Partners to Merge
Posted on 10/20/2022
BDT & Company Holdings, LLC (BDT) and MSD Partners, L.P. (MSD) have entered into a definitive business combination agreement under which they will create the an advisory and investment firm serving the distinct needs of family- and founder-led business owners and strategic, long-term investors. The combination will unite BDT, the merchant bank to the closely held, founded in 2009 by Byron Trott, and MSD Partners, a long-term-oriented investment firm that invests on behalf of like-minded investors, including Dell Technologies Founder Michael Dell and his family.
The combined firm’s offerings will include: advisory services, private capital, growth equity, real estate investing, and networking opportunities.
The firm will maintain its network of more than 250 business-owning advisory clients and fund investors.
BDT and its employee owners are the largest investor in aggregate across all BDT funds. Similarly, MSD employees are the firm’s largest investor in aggregate outside of the Dell family, representing nearly 15% of non-Dell capital invested today. Since 2010, BDT and MSD have collectively deployed more than US$ 50 billion in total capital across their investment strategies.
“I am very excited about the combination of these incredible firms,” said Michael Dell in a press release. “The MSD team has provided outstanding risk-adjusted returns for my family over the past 25 years, and I am extraordinarily proud of what they have accomplished. I am a great admirer of what Byron and the BDT team have built by providing comprehensive solutions for families like mine, and the opportunity to combine is extremely compelling. Most importantly, the cultures of the two firms are very consistent, and I am committed to supporting Gregg, Byron and their combined team in continuing to build a special investment firm to last for generations.”
Upon close, Byron Trott and Gregg Lemkau will serve as Co-Chief Executive Officers, Trott will also serve as Chairman of the combined firm, and Michael Dell will become Chairman of the Advisory Board. Dan Jester and San Orr will serve as Presidents. Brendan Rogers will serve as Chief Operating Officer. The combined firm will be co-headquartered in Chicago and New York City, with offices also located in Dallas, Denver, Los Angeles, Palm Beach, San Francisco, London, and Frankfurt.
The transaction is expected to be completed in early 2023. Financial terms were not disclosed.
Advisors
Ardea Partners LP served as the exclusive financial advisor to the transaction.
Keywords: BDT & Company Holdings, LLC; MSD Partners, L.P. MSD Capital.