Dell Keeps LBO Financing in the Family With MSD Capital

Michael Dell set up a family office in 1998 that diversified his wealth beyond stock in the computer maker he had started 14 years earlier. Now, as he seeks to take Dell Inc. private, the same investment firm may provide pivotal financing for what would be the largest buyout since 2007.

It wouldn’t be the first time that Dell, who ranks 63rd on the Bloomberg Billionaires Index with $14.1 billion, has relied on MSD Capital LP to increase his holdings in the computer company. Between January 2006 and March 2011, he bought $625 million of Dell stock with cash provided by MSD Capital, according to a person familiar with the firm, who asked not to be identified because its operations are private.