Europe

Overview

ABOUT

The MSD European Opportunity Team employs a fundamental, value-based strategy that targets a concentrated and idiosyncratic portfolio of equity and debt securities.

APPROACH

The Team typically invests in three broad categories of opportunities: core value equity, special situation equity and distressed debt. Core value equity investments are high-quality, defensive businesses run by management teams with owner-operator mindsets. Special situation equity includes businesses trading at steep discounts to intrinsic value with a path to realizing value. Distressed debt includes applying our understanding of processes to produce the best possible outcome for all stakeholders in businesses facing balance sheet issues. In the event investments do not meet our return hurdle, we prefer to hold cash. The Team generally avoids leverage, rarely takes short positions and makes limited use of idiosyncratic hedges.

PHILOSOPHY

We view ourselves like owners of a business rather than traders of securities. We demand a substantial margin of safety in each of our investments.

INVESTMENT OBJECTIVE

The EOF Team’s mission is the pursuit of excellence in the practice of value investing. We believe that diligently pursuing this mission will preserve capital and generate attractive risk-adjusted returns over a series of market cycles.

Unique Attributes

1 of 3

Culture

We believe a strong, collaborative culture can provide the Team with the stability to approach markets in a countercyclical manner.

Value

We are value-focused with the ability to be both long-term minded as well as opportunistic. We are able to hold investments for substantial periods of time, as well as to seek out value across capital structures.

Partnership

We cultivate partnerships and benefit from patient, long-term capital.

We believe a strong, collaborative culture can provide the Team with the stability to approach markets in a countercyclical manner.

Culture

We are value-focused with the ability to be both long-term minded as well as opportunistic. We are able to hold investments for substantial periods of time, as well as to seek out value across capital structures.

Value

We cultivate partnerships and benefit from patient, long-term capital.

Partnership

Team

The EOF team employs a collaborative approach focused solely on portfolio results.

We adhere to our culture in an uncompromising fashion, providing the Team with the stability to approach markets in a countercyclical manner.

MIFID II

Annual publication of information on the identity of execution venues and on the quality of execution

30 April 2018
Report for the calendar year ending 31 December 2017

Overview

MSD Partners Europe, LLP (“MSD Europe” or the “Firm”) is an investment firm authorised and regulated by the Financial Conduct Authority. 

As an investment firm that provides portfolio management services to MSD Partners, L.P. (“MSD Partners”), MSD Europe is obliged to publish on its website (i) information on the top-five execution venues in terms of trading volumes where it executed client orders and (ii) the top-five investment firms in terms of trading volumes where it transmitted or placed client orders for execution in the preceding year. MSD Europe is also obliged to publish a summary of the analysis and conclusions it draws from its detailed monitoring of the quality of execution obtained on the execution venues where it executed client orders in the previous year.

MSD Europe’s sole client is MSD Partners, for which MSD Europe acts as sub-advisor with respect to the MSD European Opportunity Funds.   MSD Europe has entered into a sub-advisory agreement with MSD Partners setting out the terms on which it provides investment management and advisory services to MSD Partners.  The terms of the sub-advisory agreement reflect the categorization of MSD Partners as a Professional Client.



Part 1

Part 1 of this report sets out data on MSD Europe’s top five execution venues and investment firms in each class of financial instruments in the form specified by Commission Delegated Regulation (EU) 2017/576 (“RTS 28”) for the calendar year ending 31 December 2017. Part 1 of this report is available to download by the public in a machine format.


Part 1 of this report refers to ‘direct’ and ‘indirect’ execution. MSD Europe uses these terms to refer to the following types of client order execution:

  • (i) Direct – execution of orders by MSD Europe with a systematic internaliser, market marker, liquidity provider, or direct counterparty (such as in OTC markets);
  • (ii) Indirect – transmission or placing of orders by MSD Europe with another investment firm for execution by the other firm (e.g. a broker).

For the avoidance of doubt, in the context of its portfolio management activities, MSD Europe treats decisions to deal which are made by MSD Europe on behalf of its client, MSD Partners, as constituting client orders for the purposes of this report.

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Part 2

Part 2 of this report sets out a summary of MSD Europe’s analysis and conclusions from its detailed monitoring of the quality of execution obtained on the execution venues and investment firms where it executed client orders.

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