Michael Dell’s fortune surpassed $50 billion for the first time after his Dell Technologies Inc. said this week it will spin off its stake in VMware Inc.
Dell shares surged to a record high on Thursday, valuing its founder’s net worth at $50.7 billion, according to the Bloomberg Billionaires Index. He’s now the world’s 26th-richest person after adding $10.6 billion to his wealth this year.
Dell’s stake in his eponymous Round Rock, Texas-based company makes up the bulk of his fortune. The 56-year-old listed Dell in 1988, but took it private in 2013 with investment firm Silver Lake Management as sales of personal computers sagged. At the end of that year, Dell was worth about $15 billion and was 59th on the Bloomberg ranking.
Dell acquired VMware’s parent, EMC Corp., in 2016 for $67 billion, helping the firm branch out from its origins as a personal computer maker, but saddling it with debt. Two years later he relisted Dell in the U.S. and his fortune has soared. This year alone the stock has jumped 35%.
Dell’s personal fortune is managed by MSD Capital, an investment firm led by Gregg Lemkau and John Phelan. Founded in 1998, MSD is regarded as one of the most sophisticated family offices, with the expertise and capital to buy companies and manage internal hedge funds. Some of its strategies have been made available to outside clients through affiliate firm MSD Partners.
-With assistance from Ian King and Jack Witzig.
This article was provided by Bloomberg News.