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MSIM raises USD770m for Global Secondary Opportunities Fund II

Morgan Stanley Investment Management (MSIM) has raised USD770m in commitments for the Morgan Stanley Global Secondary Opportunities Fund II (GSOF II), a fund dedicated to acquiring interests in private equity funds in the secondary market.

The capital raised exceeded Morgan Stanley Alternative Investment Partners’ (AIP) initial USD600m target.
“This successful fundraising demonstrates the strength of our investment approach and our talented team,” says John Wolak, co-head of AIP private equity and head of the AIP private equity secondary team. “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 secondary opportunities globally.”
The goal of GSOF II is to target off-market secondary opportunities across the private equity spectrum, with an emphasis on small- and mid-cap buyouts and special situations funds. GSOF II will seek diversification by managers, strategies, regions, vintage years and portfolio companies. Investors include existing AIP clients and new limited partners, such as endowments, foundations, public and corporate pension plans, family offices, insurance companies and high net worth individuals.
“We believe substantial opportunities continue to exist in areas of the market where we focus and that our solutions-based approach to secondary investing will remain attractive to both sellers and general partners through all phases of the economic cycle. We recently completed several restructuring deals and believe these types of deals are an ever-important and growing part of the broader secondary market,” says Jon Costello, senior portfolio manager for the AIP private equity secondary team. “We continue to be a buyer of secondaries across our platform and will continue to focus on what we believe are less efficient segments of the secondary market globally.”
GSOF II is the successor fund to AIP’s 2009 vintage secondary fund, Morgan Stanley Global Secondary Opportunities Fund I, a USD585m fund that completed its investment programme in 2012.

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