BDT & MSD Partners, a leading merchant bank, recently announced the successful raising of $3.2 billion for their latest real estate credit fund, MSD Real Estate Credit Opportunity Fund II. This impressive achievement was reported by Bloomberg and highlights the firm’s expertise in the industry.
The merger of BDT & Co., founded by renowned Chicago billionaire Byron Trott, and MSD Partners has proven to be a powerful combination. The latter is known for its investments on behalf of business entrepreneur and Dell Technologies founder Michael Dell.
According to a confidential source cited by Bloomberg, both employees at BDT & MSD as well as Michael Dell himself have committed $600 million to this new fund. Led by experienced real estate credit co-heads Jason Kollander and Adam Piekarski with support from global credit chief Rob Platek on the investment committee, this vehicle aims to deliver annual returns between 10-15% after fees.
One key strategy employed by BDT & MSD is lending against top-performing commercial real estate properties backed by trusted borrowers while maintaining conservative loan-to-value ratios ranging from 50-55%. This approach has helped them stand out among other firms in today’s competitive market landscape.
