Morgan Stanley has closed Morgan Stanley Infrastructure Partners with USD4bn in equity commitments from pension funds, insurance companies and high net worth individuals worldwide as well
Morgan Stanley has closed Morgan Stanley Infrastructure Partners with USD4bn in equity commitments from pension funds, insurance companies and high net worth individuals worldwide as well as from the firm and its employees, exceeding its initial target of USD2.5bn.
‘The successful fund-raising underscores the particular demand for infrastructure investment, and broadly, for alternative assets that generate long-term stable cash flows,’ says James Gorman, co-president of Morgan Stanley.
‘Infrastructure is now an important component of any asset allocation strategy. It offers portfolio diversification and the ability to invest in real assets, with uncorrelated investment returns relative to other asset classes.’
Sadek Wahba, chief investment officer and global head of Morgan Stanley Infrastructure, adds: ‘To date, we have investments that exceed USD1bn in enterprise value that have achieved higher than expected returns.
‘The current challenging market conditions are creating unique opportunities in the infrastructure sector, and we are benefiting from our global footprint that is generating a strong pipeline across the Americas, Europe and Asia.’
Morgan Stanley Infrastructure’s investment team is based in New York, London, Hong Kong and Beijing. The fund targets investments in assets that provide public goods or essential services in sectors such as transportation, energy and utilities, social infrastructure and communications.
Morgan Stanley Infrastructure Partners is managed by Morgan Stanley Infrastructure, part of the Merchant Banking Division within Morgan Stanley Investment Management, and had USD577bn in assets under management at the end of February.
