Dell Family Office Backs New Private-Credit Firm
The family office of Dell Technologies Inc. billionaire Michael Dell is providing the initial capital for a new private-credit firm called 5C Investment Partners, as reported by the Financial Times.
Passive Investment Strategy
Dell intends to act as a passive investor in the debut credit fund from 5C Investment Advisers through DFO Management, Dell’s family office. This move by a high-profile investor like Dell is expected to attract interest from other institutions, amid the growing popularity of private-credit relative to traditional banks.
Experienced Founders
5C Investment Partners was co-founded by Tom Connolly and Mike Koester, both former executives at Goldman Sachs Group Inc. Connolly, who worked at Goldman Sachs for 26 years, serves as managing director at 5C Investment Partners. Koester, with 25 years of experience at Goldman Sachs, retired as co-president of its alternative investments unit last year.
Investment Focus
5C Lending Partners, based in New York, aims to generate current income and long-term capital appreciation by investing in U.S. middle-market and upper middle-market companies through direct originations of first lien senior secured loans.
Market Focus
The firm targets middle-market companies with annual earnings before interest, income tax, depreciation, and amortization of $50 million or more. Additionally, they may consider investments in smaller companies as opportunities arise.
Michael Dell’s Background
Michael Dell, the chairman and chief executive of Dell Technologies, founded Dell back in 1984 with a vision to innovate and lead in the tech industry.