Morgan Stanley Investment Management has raised more than USD125 million in final commitments for its first global impact fund, PMF Integro Fund I.
Launched in partnership with the Morgan Stanley Institute for Sustainable Investing, Integro invests in private equity funds that offer the potential for compelling financial return while demonstrating positive environmental impact, social impact or both.
The fund is managed by AIP Private Markets, the private markets solutions team within Morgan Stanley Investment Management.
“Sustainable Investing is an incredibly important part of our Firm’s DNA, and the launch of Integro underscores our commitment to promote sustainable finance solutions while serving the needs of our clients,” says James Gorman (pictured), chairman and CEO of Morgan Stanley. “From education and healthcare in South Asia, to financial inclusion in South America, the fund epitomises our belief as a firm that there are opportunities for investors of all types to pursue both positive financial return and sustainable impact.”
Audrey Choi, CEO of the Morgan Stanley Institute for Sustainable Investing adds: “Morgan Stanley is dedicated to providing exciting sustainable and impact investing opportunities to our diverse client base. We believe that the team’s deep investment experience, impressive track record and focus on innovation makes Integro an attractive opportunity for our clients.”
Integro targets private equity funds with high organic growth that will drive strong financial returns and meaningful positive impact. The fund seeks to provide investors with exposure to a portfolio that is diversified by geography, theme and impact outcomes.
The AIP Private Markets team believes that this approach will maximise commercial returns to investors and increase access to quality jobs, education and healthcare, among other socially beneficial outcomes, for underserved populations.
In addition, Integro targets funds that strive to impact the environment in a positive manner and reduce the effects of climate change. While the fund seeks geographic diversification, consistent with the team’s views on the best way to achieve broad and large-scale positive impact, the likely focus of the majority of the fund’s underlying managers will be on opportunities in emerging and frontier markets. In addition, Integro plans to provide detailed, impact-related reporting alongside traditional financial statements for all investors.
“We are very pleased to offer this innovative new fund,” says John Wolak, head of AIP Private Markets. “I believe Integro provides a compelling solution for our institutional and high net worth clients who are increasingly seeking investment options that target the strong commercial returns that they have come to expect from our team, coupled with demonstrable and measurable social and environmental impact. We view Integro and this initiative as an important component of the broader suite of strategic solutions we are able to offer clients through our comprehensive private markets platform.”