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Morgan Stanley’s FoF division raises USD1.14bn for Private Markets Fund IV

Morgan Stanley Alternative Investment Partners has raised USD1.14bn in commitments for Morgan Stanley Private Markets Fund IV, a private equity fund of funds.

Morgan Stanley Alternative Investment Partners has raised USD1.14bn in commitments for Morgan Stanley Private Markets Fund IV, a private equity fund of funds.

The capital raised represents a nearly 15 per cent increase over that of Fund III, which 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,’ says Stu Bohart, co-head of Morgan Stanley Investment Management and head of alternative investments.

‘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,’ says 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.’

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 emphasises less efficient market segments and targets managers with differentiated skill sets in the US, Western Europe and emerging private-equity markets.

‘We search broadly for opportunities that are highly differentiated relative to their peer set,’ says 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.’

The objective of the fund 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 USD1bn in commitments.

Alternative Investment Partners is the fund of funds division of Morgan Stanley Investment Management. AIP manages portfolios of hedge funds, private equity funds and real estate funds for some of the world’s largest institutions and high net worth individuals. AIP has offices in West Conshohocken, Pennsylvania, New York and London and has recently opened an office in Hong Kong.

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