Morgan Stanley Alternative Investment Partners Private Markets has closed its debut private equity co-investment fund at $425 million, beating its $350 million target. The fund’s limited partners include private and public pensions, corporations, foundations, family offices and high-net worth individuals.
NEW YORK–(BUSINESS WIRE)–Morgan Stanley Alternative Investment Partners Private Markets team (“AIP Private Markets”), an investment team within Morgan Stanley Investment Management, today announced it has completed the final close of its first standalone co-investment fund, Private Equity Co-Investment Fund I (“PECO I”). Commitments to PECO I totaled $425 million, exceeding AIP Private Markets’ target of $350 million.
PECO I seeks to achieve strong risk-adjusted returns by investing in a diversified portfolio of direct co-investment opportunities alongside high-quality private equity sponsors in buyout and growth transactions across North America and Europe. Consistent with the investment team’s broader strategy, PECO I seeks to provide exposure to less efficient market segments and targets investments with sponsors who can apply specialized skills to unlock value within portfolio companies.
“AIP Private Markets is a long-standing, deeply resourced and highly respected co-investor, and we are pleased that our clients can benefit from our valuation experience and access to a strong and diverse pipeline of global investment opportunities,” said John Wolak, Head of AIP Private Markets.
Since inception, AIP Private Markets has invested approximately $3.5 billion in over 180 co-investment opportunities on behalf of its globally diversified range of funds and separately managed accounts.
“We believe that our team’s ability to respond rapidly to private equity general partners, particularly at the smaller end of the market, affords us the opportunity to be highly selective in making investments,” said Neha Champaneria Markle, Managing Director, AIP Private Markets. “In our view, PECO I provides our clients with unique exposure to these attractively positioned and well-vetted private equity assets in a highly efficient way.”
PECO I’s investors include institutions such as private and public pensions, corporations, foundations and family offices, as well as high net worth individuals, from a broad range of geographies.
Alternative Investment Partners Private Markets, an investment team within Morgan Stanley Investment Management, was established in 2001 and specializes in delivering unique and innovative private market solutions to a global client base. AIP Private Markets’ built-for-purpose investment team draws on its deep understanding of private markets strategies formed over decades of investment experience and seeks to apply this expertise and insight to bring thoughtful, opportunistic and innovative solutions to clients.
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