Morgan Stanley Alternative Investment Partners (AIP) has raised USD1.14 billion in commitments for its private equity fund of funds Morgan Stanley
Morgan Stanley Alternative Investment Partners (AIP) has raised USD1.14 billion in commitments for its private equity fund of funds Morgan Stanley Private Markets Fund IV – an increase of nearly 15 per cent on the level achieved by the Morgan Stanley Private Markets Fund III, which AIP closed in 2006.
“AIP’s successful fund-raising effort during an extremely challenging market environment demonstrates the strength of our investment approach and our stable team of talented managers,” said Stu Bohart, Co-Head of MSIM and Head of Alternative Investments.
Private Markets Fund IV incorporates three main strategies: Buyouts, primarily in North America and Western Europe, global Venture Capital and global Special Situations. AIP’s investment strategy emphasizes less efficient market segments and targets managers with differentiated skill sets in the US, Western Europe and emerging private-equity markets.
“We believe that demand for comprehensive expertise in the private equity investment space combined with our unique investment strategy contributed to strong demand from investors on a global basis,” said Cory Pulfrey, Head of AIP. “We were especially pleased with the robust level of commitments to Private Markets Fund IV from both existing AIP investors and new limited partners.”
The objective of Private Markets Fund IV is to provide investors with superior risk-adjusted returns through global investments in primary funds, co-investments and direct secondaries. Private Markets Fund III shared the same objective and raised USD1 billion in commitments.
“We search broadly for opportunities that are highly differentiated relative to their peer set,” said Tom Dorr, Chief Investment Officer, Private Equity Fund of Funds Team. “Overall, these opportunities must fit within a diversified portfolio framework while capitalizing on current market dislocations. In today’s environment, distressed – including secondary purchases – and asset-backed strategies are especially attractive.”
