Morgan Stanley Capital Partners has secured $3.2bn for its latest buyout vehicle, North Haven Capital Partners VIII, marking a significant milestone amid a challenging fundraising environment for private equity, according to a report by Bloomberg
The middle-market-focused fund will target companies with EBITDA between $20m and $30m, aiming to make up to 16 investments – a step up from prior fund averages. The raise represents a 60% increase from its predecessor and includes $200 in mGP commitments, according to Aaron Sack, Head of Morgan Stanley Capital Partners.
Despite headwinds across the private equity industry, Morgan Stanley attracted a mix of returning LPs and new investors from Asia and the Americas. Sack noted that allocators showed zero tolerance for style drift or passive investment strategies, setting a high bar for managers.
While Sack didn’t disclose performance metrics, he confirmed the team’s 2016 $1.5bn vintage fund is nearly fully monetised, with a robust exit pipeline expected from Fund VII this year. He also pointed to more rational valuations returning to the market, opening the door to disciplined deployment.
The 28-member team plans to bolster its mid-level operating talent during the fund’s investment cycle, supporting what Sack calls a “high-conviction, hands-on” approach to value creation in the mid-market.
