Morgan Stanley Alternative Investment Partners has raised $1.14 billion in commitments for its new private equity fund of funds, Morgan Stanley Private Markets Fund IV.
The capital raised for the new fund represents a nearly 15% increase over that of Morgan Stanley Private Markets Fund III which was closed in 2006, the company said.
Morgan Stanley Private Markets Fund IV incorporates three main strategies: buyouts, primarily in North America and western Europe, global venture capital and global special situations. The objective of the new 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 $1 billion in commitments, according to the company.
Morgan Stanley Alternative Investment Partners (AIP) is the fund of funds division of Morgan Stanley Investment Management (MSIM). AIP manages portfolios of hedge funds, private equity funds and real estate funds for institutions and high net worth individuals.
Stu Bohart, co-head of MSIM and head of alternative investments, said: 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.
