Morgan Stanley Alternative Investment Partners has raised USD585m in commitments for its Global Secondary Opportunities Fund, a fund dedicated to acquiring interests in private equity funds in the secondary market.
The capital raised exceeded Morgan Stanley Investment Management’s initial USD500m target.
"This successful fund raise demonstrates how MSIM leverages its competitive strengths and draws upon the full depth of resources at Morgan Stanley to deliver compelling investment solutions to our clients," says Gregory Fleming, president of Morgan Stanley Investment Management. "As an integrated platform participating in both the primary and secondary markets, AIP is well-positioned to employ its differentiated investment approach to take advantage of the expected growth in secondary opportunities."
The objective of the fund is to target off-market secondary opportunities across the private equity spectrum, with an emphasis on small- and mid-cap buyouts, distressed and special situations funds.
The fund is expected to be diversified by managers, strategies, regions, vintage years and portfolio companies.
Investors include existing Morgan Stanley Investment Management investors and new limited partners, including endowments, foundations, public and corporate pension plans, family offices, insurance companies, and sovereign wealth funds.
This is the second fund dedicated to secondary private markets that Morgan Stanley Investment Management has closed this year. In March, Morgan Stanley Alternative Investment Partners’ real estate fund of funds team announced that it raised USD370m in commitments for Morgan Stanley AIP Phoenix Global Real Estate Secondaries 2009, a fund dedicated to acquiring secondary interests in opportunistic and value-added private equity real estate funds.