Private Capital

Overview

MSD Private Capital (“MSD PC”) is the private equity arm of MSD Partners, L.P.

We are focused on partnering with world-class management teams to build outstanding businesses and create long-term value for our investors. MSD PC has investment and structuring flexibility and invests in control buyouts, significant minority and structured equity. Unlike traditional private equity funds, we have the flexibility to hold investments for the long-term, if that is right for the Company and management. MSD PC has invested approximately $2.8 billion into control buyout and strategic equity investments since 2016.

PCG Advantages

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Patient Capital

No “expiration” like a traditional private equity fund.

Experienced Team

Highly experienced senior investment team that has led 21 private equity transactions representing over $4 billion of invested equity over the past two decades.

Value Creation Capabilities

Team of former senior executives and other advisors that act as resources to partner companies to help them effect meaningful business transformation and growth.

Investment Flexibility

Flexibility to (i) structure our investments as control, significant minority or structure equity and (ii) deploy capital over time into platforms.

Efficient Decision Making

MSD leadership controls investment decision making.

Alignment of Interest

Significant personal investments from MSD team members alongside Michael Dell ensures that we think as business owners, not as asset managers.

No “expiration” like a traditional private equity fund.

Patient Capital

Highly experienced senior investment team that has led 21 private equity transactions representing approximately $4 billion of invested equity over the past two decades.

Experienced Team

Team of former senior executives and other advisors that act as resources to partner companies to help them effect meaningful business transformation and growth

Value Creation Capabilities

Flexibility to (i) structure our investments as control, significant minority or structured equity and (ii) deploy capital over time into platforms.

Investment Flexibility

MSD leadership controls investment decision making.

Efficient Decision Making

Significant personal investments from MSD team members alongside Michael Dell ensures that we think as business owners, not as asset managers.

Alignment of Interest

Advantages Of Partnering With Us

    • Given our history, we have a deep understanding of the issues specific to entrepreneur- and family-owned businesses
    • Focus on preserving entrepreneurial culture and legacy of the business while we assist with building management strength and investing in capacity for future growth
    • Philosophy of using appropriate leverage to maintain flexibility and reduce risk
    • Focus on aligning incentives with management
    • Patient approach to capital investment decisions: our unique capital base and persistent focus on value creation allow us to pursue strategies and investments without a focus on a short-term exit
    • Strong track record of experience supporting businesses through industry consolidation and M&A-driven growth strategies with expertise, capital and execution support

  • Focus on major strategic decisions and support management's efforts to achieve business goals while giving management room to run their business
  • Employ a customized approach to working with each management team and business based on the individual company’s strategic priorities, not a “one size fits all” playbook
  • Partnership with former senior executives and a network of advisors that serve as resources in situations where they can help effect positive transformation and growth
  • Strong philosophy of aligning management with other shareholders through substantial equity incentives
  • Where appropriate, partner with management to build board of directors by adding individuals that management feels will help create value in their business
  • Our best references are our past and current CEOs

The nature and approach of MSD Private Capital provides a compelling alternative to traditional private equity for your clients, including:

  • Unique understanding of family- or entrepreneur-owned businesses given MSD's history
  • Ability to be a patient partner without the need to sell a business prematurely to market our next fund or meet LP liquidity expectations
  • Access to substantial global network of MSD and Michael Dell
  • Access to substantial capital that can be deployed to grow the business
  • Significant flexibility in structuring investments
  • Complete control over our investment decisions internally
  • Strong philosophy of aligning management with other shareholders through appropriate equity incentives
  • Discretion and confidentiality
  • Ability to respond quickly and flexibly

PCG Investment Criteria

Target Investment Structures & Criteria

  • Companies in growth industrials and tech-enabled & professional services, with >$25 million EBITDA and an EV of >$400 million
  • Recognized as market leaders
  • Consistent history of profitable growth
  • Potential for return on invested capital greater than 30%
  • Headquartered primarily in the US

Selected Industries

Growth Industrials (Products & Services)

  • Outdoor living products
  • Packaging manufacturing
  • Building products
  • Specialty chemicals and materials
  • Aerospace & Defense
  • Architectural & Engineering
  • Government and Defense services
  • Testing & Inspection
  • Logistics and supply chain management services
  • Technology-enabled solutions for industrial processes
  • B2B industrial services

Tech-Enabled & Professional Services

  • BPO and Contact Center
  • HR Outsourcing
  • Property Management
  • Professional Services
  • Facility Services
  • Managed Application Services
  • Content services
  • Wellness and Fitness Services
  • Ecommerce
  • Education Technology
  • Consumer Services
  • Outsourced IT Services

Compelling Rationale for our Patient Capital

  • Provide superior alternative for founders, management teams and families contemplating an ownership transition or seeking to raise structured capital for growth or strategic initiatives
  • Companies with an opportunity and desire for business transformation and growth without the distractions of recurring sale processes, capital raising or the short-term focus of public markets
  • Businesses that can benefit from MSD PCG’s capabilities and network

Select Investments

Endries International is a leading distributor of fasteners and Class-C parts serving industrial Original Equipment Manufacturers (OEMs) worldwide.

Hayward Industries is a leading global manufacturer and marketer of residential & commercial pool equipment, automation and accessories.

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Owl Rock Capital Corporation is a Business Development Company ("BDC") focused on making loans to, and making debt and equity investments in, U.S. middle-market companies across a broad range of industries.

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Founded in 1968 and headquartered in Oakland, Tenn., Ring Container Technologies ("Ring") is an industry leading blow molder of high-density polyethylene (HDPE) and polyethylene terephthalate (PET) plastic bottles for the food service, retail food and other end-use markets. Ring employs more than 700 people throughout its headquarters and manufacturing locations in 17 cities across the U.S., Canada and the UK.

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TNS is a leading global provider of secure, mission-critical connectivity solutions via its global network. The company offers a broad range of networks and innovative value-added services, enabling transactions and the exchange of information in many diverse industries.

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The Ultimate Fighting Championship ("UFC") is the largest mixed martial arts promotion company in the world, and represents one of the largest and fastest growing sports brands. UFC produces more than 40 live events annually and is the largest Pay-Per-View event provider, with events broadcast in over 156 countries and territories, to nearly 1.1 billion television households, in 29 different languages.

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WIRB-Copernicus Group ("WCG") is one of the world's leading providers of solutions that measurably improve the quality and efficiency of clinical research. WCG's solutions are built upon the foundation of ethical review, but have grown to include a suite of complementary services and technologies that expand the capabilities of the modern research professional.

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Nutrisystem is a leading direct-to-consumer health and wellness brand with strong consumer awareness. With a full suite of portion-controlled entrées, snacks, and shakes that are specifically designed to meet consumer needs, Nutrisystem delivers its products conveniently to customers across the U.S. The Company’s portfolio is complemented by various live counseling options, including trained weight loss coaches, registered dietitians and certified diabetes educators that are available seven days a week.

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Woolpert is a leading architecture, engineering, geospatial and strategic consulting firm with over 1,000 employees located in 35+ office locations. Founded in 1911, Woolpert delivers quality solutions for clients in a wide range of public- and private-sector markets, both across the country and around the world.

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West Monroe Partners (“WMP”) is a business technology consulting firm that primarily serves middle market clients. WMP provides both strategy consulting services as well as process and execution consulting. WMP is headquartered in Chicago and has 1,500+ employees across eight offices nationwide.

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East West provides a comprehensive and integrated set of product realization capabilities to a leading and high-growth customer base. With U.S. operations, and international operations, the Company utilizes a global design team, transparent supply chain, on-site quality control and flexible logistics systems to provide its customers with superior products and competitive cost advantages. Founded in 2001, East West offers its customers a differentiated breadth of onshore, nearshore and offshore design, engineering, manufacturing and distribution capabilities to serve the full spectrum of customer needs ranging from new product design to full scale production and distribution.

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Investments made since 2016. Represents investments made under current MSD Private Capital Leadership.