Morgan Stanley Expansion Capital, a growth-focused private investment platform within Morgan Stanley Investment Management, has closed on over USD275 million of capital commitments for North Haven Expansion Credit LP and its related funds, exceeding its fundraising target.
Expansion Credit intends to capitalise on Morgan Stanley Expansion Capital’s (Expansion Capital) long-standing history of private growth investing in late-stage, private companies across a broad range of industries, including technology, healthcare, consumer, ecommerce, digital media and business services.
“We are pleased that investors have placed their trust in us and recognise the potential of our Expansion Credit offering, given our strong sourcing advantage and focus on companies with meaningful enterprise value,” says David N Miller, Head of Private Credit and Equity for Morgan Stanley Investment Management. “The team brings outsized resources to the growth credit market by combining Expansion Capital’s expertise and network with Morgan Stanley’s global franchise.”
The Fund’s investment strategy focuses on companies which are late-stage and have proven business models, momentum and strong management. The Fund leverages established channels of deal origination and utilises market sector and investment insight from senior investment professionals within the Morgan Stanley Expansion Capital platform.
“We believe that our investment strategy is differentiated when compared to traditional growth debt providers,” says Pete Chung, Head of the Morgan Stanley Expansion Capital Platform. “The Fund intends to extend Expansion Capital’s legacy of investment success and will seek to generate attractive risk-adjusted returns for its investors through a combination of current income and long-term capital appreciation.”
Bill Reiland, Chief Investment Officer of Expansion Credit, says: “We believe that our investment team brings a unique blend of growth debt investing, growth equity investing and Morgan Stanley experience to the Fund’s strategy, allowing the Fund to properly value growth businesses and appropriately structure investments to maximise returns while limiting downside risk.”
