MSD Capital

Where Michael Dell is winning

November 4, 2010: 3:00 AM ET

Dell Inc. is struggling, but its founder's personal investment fund is a hot ticket.

Shares of Dell (DELL) may be stuck in neutral, but MSD Capital, the investment firm that manages Michael Dell's personal fortune, is moving at full speed. At a time when raising new money has been brutally difficult, Fortune has learned that the $12 billion MSD will soon close its first-ever fund that raised money from outside investors. Its new MSD European Opportunity Fund, dedicated to distressed investing opportunities in Europe, exceeded its $500 million target and is among the largest new capital raises this year, on par with funds raised by John Paulson and Alden Global Capital. The fund reached its target four months early. "In this environment, $500 million is a great launch," says Tanya Beder, chairman of risk-management firm SBCC Group. And most distressed funds are stagnant, says Ken Heinz, president of Hedge Fund Research; only $9 million of the $19 billion inflow during the third quarter went into pure distressed funds. More

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