BDT & MSD Partners, founded by a former Goldman Sachs executive, has recently closed its fourth flagship fund and now manages over $60 billion in assets. The firm is known for its unique approach to investing, which involves working closely with families and entrepreneurs to help them grow their businesses and preserve their wealth. With a successful track record and a focus on long-term relationships, BDT & MSD Partners is well-positioned for continued growth in the years ahead.
Billionaire Byron Trott’s Firm Closes $14 Billion Fund
Byron Trott, the former vice chairman of Goldman Sachs Inc., was seen leaving federal court in New York, U.S., on Wednesday, May 23, 2012. According to Forbes, BDT & MSD Partners, a merchant bank catering to extremely wealthy families and business founders, has successfully closed a $14 billion fund aimed at investing in other family-owned businesses. BDT Capital Partners, its investment affiliate, commenced fundraising for its fourth flagship fund in early 2022, with a target of $13 billion. An individual familiar with the situation revealed that BDT & MSD now manages over $60 billion in assets, a significant increase from the approximately $50 billion managed a year ago.
Billionaire Byron Trott’s Firm Closes $14 Billion Fund News
The new fund has 157 investors, with almost all (97%) being family business owners, founders, or their personal foundations and family offices, as stated by a company representative. This aligns with the client base served by BDT & MSD’s advisory business, which focuses on M&A, capital restructuring, trusts and estates, philanthropy, and social impact for founders and their families. Notable clients have included former U.S. Treasury Secretary Henry Paulson, the Kohler family (owners of the $7 billion toilet-and-faucet maker), and the Redstone family, owners of Paramount Global.
New fund allocation
The new fund has already allocated more than 30% of its assets in 2023, with investments including $2.9 billion in the Italian packaging machinery firm, the IMA Group, and $1.3 billion in ProMach, a Cincinnati-based packaging machinery company. Additionally, it invested $250 million in the software company Qualtrics in June, as part of its privatization by private equity firm Silver Lake.
Fund Putted In National Amusements
The fund also put $125 million into National Amusements, the theater operator owned by the Redstone family, which is the controlling shareholder of Paramount Global. According to reports, tech billionaire Larry Ellison and his son are currently in discussions to acquire the Redstone family’s National Amusements.
Who is Byron Trott?
Byron Trott, chairman and co-CEO of the company, stated in an email that BDT & MSD were established to cater to the specific requirements of family business owners and founders. He mentioned that Fund 4 will allow them to continue offering long-term, specialized, and aligned capital to support the strategic objectives of these businesses. Trott emphasized the belief that family and founder-led businesses demonstrate greater resilience, particularly during times of uncertainty, with owners and management teams that adopt a strategic and opportunistic approach to long-term planning and investment.
Byron Trott’s advisory and Investment
In 2023, BDT & MSD was formed through the merger of Byron Trott’s advisory and investment business with MSD Partners, an investment firm supported by Michael Dell’s family office, MSD Capital. Byron Trott established BDT Partners in 2009 following a 27-year tenure at Goldman Sachs, where he served as vice chairman of global investment banking. BDT Capital Partners, under Trott’s leadership, successfully raised over $18 billion across three different funds from 2009 to 2020. At 65 years old, Trott’s estimated net worth is $2.5 billion, attributed to his stake in BDT & MSD and his career earnings.
Michael Dell Networth
Gregg Lemkau, who was previously co-head of global investment banking at Goldman Sachs, joined MSD Partners in 2021 as its CEO, and currently holds the position of co-CEO at BDT & MSD. In 1998, Michael Dell, the founder of Dell Technologies with a net worth of $70 billion, established MSD Capital as his family’s personal office. Following the merger, Dell formed DFO Management as a new family office.