msd investment corp is a private investment firm managing the capital of Michael Dell and his family. Founded in 1998, msd investment corp started with $4 billion in assets under management from Michael Dell’s Dell Technologies stock holdings. Over the past two decades, msd investment corp has grown into a diversified investment firm managing over $20 billion in capital across public equities, private equity, real estate, credit and special situations. msd investment corp has successfully diversified the Dell family’s wealth away from just Dell Technologies stock by investing in other assets and industries. Some of msd investment corp’s notable investment strategies and successes include investing in technology companies like VMware and Uber early on, taking majority stakes in hospitality companies like Four Seasons and Silver Rock Resorts, and pursuing credit and distressed debt opportunities across industries. With an experienced investment team and long-term outlook, msd investment corp has demonstrated solid investment performance and grown into one of the leading private investment firms in the US.
msd investment corp’s Origin and Early Investments Focused on Tech
msd investment corp was formed in 1998 as the private investment arm for Michael Dell’s fortune, which at the time consisted almost entirely of his stake in the computer company he founded, Dell Technologies. Michael Dell recognized the risks of having the majority of his net worth tied up in one company’s stock performance, so he founded msd investment corp to start diversifying the family’s assets. msd investment corp started with an initial $4 billion in capital from Dell’s stock and focused its early investments on the technology sector, where Dell had built his fortune. Some of msd investment corp’s most successful early investments were in tech companies that went on to have huge IPOs and growth, such as stakes in VMware in 2003 and Uber in 2011. msd investment corp also invested heavily in biotech during the 2000s. This tech-focused strategy allowed msd investment corp to leverage the Dell family’s expertise in tech while diversifying their holdings.
Majority Acquisitions of Hospitality Brands Expanded msd investment corp’s Portfolio
In addition to minority stock investments, msd investment corp has differentiated itself from many family investment offices by pursuing majority acquisitions of entire brands and companies. This allows msd investment corp to implement its own strategy and vision for brands rather than just being a passive investor. A prime example is msd investment corp’s hospitality portfolio, where they have acquired some of the leading brands in luxury hotels and resorts. In 2007, msd investment corp acquired a controlling stake in Four Seasons Hotels and Resorts, the prestigious luxury hotel chain. They went on to purchase full ownership of Four Seasons in 2016. msd investment corp also acquired a majority stake in the Hyatt-affiliated Miraval spa and wellness resort brand in 2017 and purchased the ultra-luxury Auberge Resorts collection in 2019. These hospitality acquisitions have expanded msd investment corp’s investment purview beyond just tech into new industries and asset classes.
Leveraging Credit Expertise with Distressed Debt Investments
As a long-term investor, msd investment corp has been able to leverage market cycles and opportunities that fit its expertise, such as distressed debt. Credit and distressed/special situation investing became an increasing area of focus and strength for msd investment corp after the 2008 financial crisis. The investment team saw opportunities to acquire discounted debt securities and troubled assets that were selling off in industries that had strong long-term fundamentals. For example, msd investment corp invested $100 million in First Data’s distressed debt in 2009, which ended up producing a large gain. They also bought offshore oil and gas assets that were distressed but turned them around by improving operations and selling off non-core assets. msd investment corp has continued to maintain credit and special situations as a key component of its investment strategy in recent years, exemplifying its flexibility across assets and willingness to bet on out-of-favor sectors.
In summary, msd investment corp has grown into a multi-billion dollar private investment powerhouse by diversifying the Dell family’s fortune away from just Dell Technologies stock into a broader portfolio spanning public stocks, private companies, real estate, distressed debt and more. msd investment corp’s long-term investment horizon, sector expertise, and strategy of making active majority acquisitions in areas like hospitality have enabled differentiated returns and successful growth of the family’s wealth.