Michael Dell’s MSD Capital filed 13D on November 2nd for its 5.51 million shares in Blueknight Energy Partners (BKEP) , corresponding to a 23.1% activist stake. This is a 54% increase in the firm’s position, since MSD Capital revealed 3.58 million BKEP shares in the second quarter. BKEP performed well for most of the time in 2011, even when the European debt crisis deteriorated in August. But the stock plunged hard in late September due to the settlement of the consolidated securities class action litigation. Now the stock has lost 23% and is trading at about $6.
MSD Capital was established in 1998. The firm is formed to exclusively manage the capital of Michael Dell and his family. The firm mainly invests in Publicly-traded securities, Traditional private equity activities, real estate, special opportunities, and selectively investing with established third-party managers in the private and public markets. MSD Capital has a team of approximately 80 people, and operates from the firm’s offices in New York, Santa Monica and London.
Blueknight Energy Partners provides integrated terminalling, storage, processing, gathering, and transportation services in the United States. The company primarily targets for companies engaged in the production, distribution and marketing of crude oil and asphalt products. The company offers crude oil terminalling, storage, pipeline, trucking, and producer field services. The company was formerly known as SemGroup Energy Partners, L.P. The company is based in Tulsa, Oklahoma.