April 22, 2024

Dell Family Office Backs New Venture: DFO Management Invests in 5C Investment Partners’ Inaugural Fund

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In a significant development within the private credit investment landscape, the family office of Michael Dell, founder of Dell Technologies, is making its mark by providing the initial outside capital to 5C Investment Partners. This newly established private credit investment firm is spearheaded by two former Goldman Sachs executives, Tom Connolly and Mike Koester.

DFO Management, the family office of Michael Dell, will be acquiring a passive stake in 5C and is set to invest in the firm’s inaugural fund. This fund will primarily focus on extending senior loans to mid-sized and large businesses, signaling a strategic move into the private credit space for the Dell family office.

Tom Connolly and Mike Koester, both seasoned veterans in the realm of private credit, departed from Goldman Sachs in April 2023 and subsequently launched 5C Investment Partners in September of the same year. Notably, the duo played pivotal roles in the development of Goldman Sachs’ direct lending business, successfully raising a substantial $10 billion credit fund in the aftermath of Bear Stearns’ collapse in 2008.

The primary objective of 5C Investment Partners is to engage in direct lending activities. The firm’s maiden fund will have an initial focus on the United States, with plans for potential expansion into the European market.

Michael Dell’s family office has a track record of supporting private credit firms, having previously backed entities such as Blue Owl Capital. This latest move underscores the continued diversification of investment strategies by family offices, particularly in the realm of private credit, which has gained prominence as an attractive asset class.

As 5C Investment Partners embarks on its journey with the backing of the Dell family office, industry experts will be closely monitoring the fund’s performance and the broader implications for the private credit sector, as the collaboration between family offices and emerging investment firms continues to shape the evolving landscape of financial markets.

Financial Desk

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