BDT & MSD Partners, a merchant bank formed by the merger of BDT & Co. and MSD Partners, has successfully raised $3.2 billion for their new real estate credit fund, known as the MSD Real Estate Credit Opportunity Fund II. This news was reported by Bloomberg and is expected to bring in returns of 10-15% annually after fees.
The fund’s co-heads Jason Kollander and Adam Piekarski, along with global credit chief Rob Platek who sits on the investment committee, aim to lend against high-performing commercial real estate properties backed by reputable borrowers while maintaining conservative loan-to-value ratios of 50-55%. The firm’s employees and Dell Technologies founder Michael Dell have also committed $600 million to this venture.
This successful fundraising effort highlights BDT & MSD’s expertise in identifying profitable opportunities within the real estate market. With a focus on trusted borrowers and conservative lending practices, they are well-positioned for success in this sector.
