Why BDT and MSD are joining forces

The combined firm’s offerings will include private capital, trusted advice and capital, credit, real estate and growth equity.

As the saying goes, great minds think alike. That seems to be the case as BDT & Company and MSD Partners have agreed to merge to form an advisory and investment firm. No financial terms were disclosed.

The objective behind this merger is not to “be the biggest firm,” as sources familiar with the deal told PE Hub. The goal is to create a firm to serve family- and founder-led business owners and long-term investors.

The combined firm’s offerings will include private capital, credit, real estate and growth equity. Upon close, Trott and Greg Lemkau, CEO of MSD, will be co-CEOs. Trott will also work as chairperson of the combined firm, and Dell will become chairperson of the advisory board. The transaction is expected to be completed in early 2023.

BDT is a merchant bank founded in 2009 by Byron Trott after an investment-banking career that included working with Warren Buffett, the Pritzker and Koch families as well as other prominent investors. It has about $33.3 billion under management.

The firm has deployed more than $30 billion across 43 companies since 2010 through its funds and co-investments. BDT’s investor base comprises more than 90 percent active business owners, their family offices and foundations.

BDT’s core fund strategy will remain the same. In the latest close, the firm has $10.4 billion for Fund IV.

MSD Partners was formed in 2009 to manage the capital of a range of third-party investors in addition to Michael Dell and his family.

Since 2010, BDT and MSD have collectively deployed more than $50 billion in total capital across their investment strategies.

This news comes on the heels of EQT and Baring Private Equity Asia completing a merger this week to capture growth opportunities in Asia.