MSD Capital utilises multifaceted investment strategies to create and develop a diverse portfolio of a wide variety of asset classes.
The firm’s most significant equity stakes in public companies are PVH Corp. and Dine Brands Global. PVH Corp. is one of the largest apparel companies in the world that owns a number of well-known subsidiaries like Calvin Klein, Tommy Hilfiger, Van Heusen, Izod, Arrow, and Speedo and is currently valued at $5.59 billion with 5.9% return on equity (ROE). MSD Capital owns over 256,000 shares of this company. Dine Brands Global is a food and beverage company that owns and operates two full-service restaurants including Applebee’s Neighbourhood Bar and Grill, and the International House of Pancakes. MSD Capital is the majority shareholder of this The firm owns over 3.92 million shares of the company and an approximate 21 percent stake in the company.
Asbury Automotive was another significant equity stake for MSD Capital which it exited in 2017, liquidating its remaining 1.7 million shares at $67 per share.
MSD Capital bought the Four Seasons Resort, Maui in 2004 in a massive $280 million buyout. However, the resort faced numerous financing difficulties in remitting its annual debt in the coming years. In 2010, MSD had to disburse $12 million to help payout its $23.6 million annual debt service. The firm managed to successfully refinance the resort in 2011. The firm doubled down on its real estate investment by buying out the Four Seasons Resort in Hualalai in 2006 by partnering up with Rockpoint Group Joint Ventures.
In July 2016, the family office partnered with TF Cornerstone to buy a 90% stake in the air rights above Grand Central Terminal in a deal worth $126 million. In 2018, the two firms sold 680,000 square feet of their owned 1.35 million to JP Morgan Chase for $350 per square foot, amounting to a consolidated buyout of $238 million. The deal resulted in a net profit of $90 million for MSD and TF Cornerstone.
In September 2016, MSD partnered with TruAmerica to acquire three Las Vegas, garden-styled, multi-family communities in Southern Nevada. The next year, the two firms expanded their partnership to acquire a 640-unit multi-family community Sienna at Vista Lake in a deal worth $66 million.
The family office has also participated in a number of major acquisitions. In 2009, it joined 6 other private equity groups to buy the remaining assets of IndyMac Bank, a failed institution that crumbled during the 2008 economic crisis, in a deal worth $13.9 billion. The bank was later renamed the OneWest Bank. In 2013, MSD played a key role in the acquisition of Dell Inc., by Michael Dell and Silver Lake in a deal worth $24.4 billion. It was also instrumental in negotiating the $60 billion merger of Dell Inc., with EMC in 2016. In the same year, MSD joined a consortium led by WME-IMG to participate in the $4 billion acquisition of the Ultimate Fighting Championship(UFC).