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Michael Dell's Family Office Switches To Private Markets - Report

The move into private markets is an example of a trend that has been driven by desire for the illiquidity premium they offer. Some of this movement can be traced back to quantitative easing - aka central bank money printing - and how this has made certain asset classes relatively more alluring. How long can this shift last?
Tech tycoon Michael Dell is moving from public to private
markets, as his $16 billion family office winds down some
stock-picking strategies, the Wall Street Journal
reported late last week.
Dell’s MSD
Capital is making the kind of change that this publication
has noted for some time: family offices and other wealth managers
switching into private equity and other relatively illiquid
assets where they think it is easier to earn returns.
Dell Technologies’ founder will continue to have significant
exposure to the stock market through passive investments and his
Dell holdings, the WSJ reported. The $16 billion figure
does not include the billionaire’s Dell holdings.
The report noted that MSD co-founder Glenn Fuhrman, is retiring
from the firm at the end of December after nearly 22 years and
plans to start his own family office. Sources said that Fuhrman
wanted to spend more time with his family, including his three
young children, and on philanthropy. MSD’s other co-founder, John
Phelan, based in Palm Beach, Florida, will continue running the
firm.
The WSJ said that a Bain & Co review in 2017 of MSD
showed that the family office’s strengths were in private
markets.
The move into private capital by family offices and other wealth managers has been driven by a desire for yield against a backdrop of ultra-low interest rates. High valuations for listed equities have squeezed yields. There is an estimated $2.0 trillion-plus of "dry powder", or committed capital, in private equity alone, raising some concerns that the sector is getting crowded.