Morgan Stanley has received about $1 billion for its second mezzanine debt fund. The LPs for Morgan Stanley Credit Partners II include unnamed global institutions and high net worth individual investors. According to the firm, it has already deployed more than $144 million from the fund in four portfolio companies.
NEW YORK–(BUSINESS WIRE)–Morgan Stanley today announced that Morgan Stanley Credit Partners, which is part of the Firm’s Merchant Banking & Real Estate Investing business, has raised aggregate commitments of approximately $1 billion for Morgan Stanley Credit Partners II, L.P., the Firm’s second investment vehicle targeting corporate mezzanine debt and related instruments issued by middle market companies in North America and Western Europe.
“This significant capital raise for Morgan Stanley Credit Partners speaks to the strength of the team’s rigorous, credit-centric investment approach and the strong investment performance they have achieved,” said Ed Moriarty, Head of Merchant Banking & Real Estate Investing. “Our clients appreciate the differentiated approach Credit Partners brings to this opportunity set as well as the benefits the team maintains by being part of the Merchant Banking & Real Estate Investing platform, including access to Morgan Stanley’s global network as well as resources dedicated to providing best-in-class operations, risk, reporting and client service.”
Investors in the new fund comprise leading global institutions and high net worth individual investors as well as Morgan Stanley and the fund’s investment team. The institutional participation in the fund is more than double the size by dollars compared to its predecessor fund, and the fund has already invested more than $144 million in four portfolio companies.
“Our clients recognize that mezzanine debt presents a compelling investment opportunity, and we are pleased with the strong support we have received from a wide range of investors,” commented Hank D’Alessandro, Managing Director and Head of Morgan Stanley Credit Partners. “Our Credit Partners investment team continues to focus on finding investment candidates that have leading market positions and generate strong free cash flow and returns on invested capital. We bring a partnership approach to our relationships with financial sponsors and management teams, and look for investment opportunities where the companies that join our portfolio can benefit from the access to the network and resources of a global financial services firm.”
Morgan Stanley Credit Partners is an investment platform for mezzanine debt and related instruments issued by middle-market companies in North America and Western Europe. Through a rigorous credit-centric and disciplined investment process, Credit Partners seeks to create value as a long-term partner for financial sponsors and companies throughout an investment’s life-cycle. The team’s experienced professionals have extensive industry relationships and significant expertise in investment origination, deal structuring, credit analysis and principal investing in the leveraged finance markets. Credit Partners also leverages the brand and unparalleled global network of Morgan Stanley to source investment intelligence and opportunities. Credit Partners is part of Morgan Stanley Merchant Banking & Real Estate Investing.
Morgan Stanley Merchant Banking & Real Estate Investing (MB&REI) is the Firm’s direct private investing group that puts capital to work on behalf of a diverse client base, including governments, institutions, corporations, and individuals worldwide. MB&REI employs a consistent, proven value-creation approach across a full range of strategies, including private equity, real assets, and credit. From 22 locations around the world, over 400 experienced professionals with extensive private markets expertise and access to Morgan Stanley’s global franchise provide an unparalleled network to source investment intelligence and opportunities. MB&REI’s deep resources include best-in-class reporting, operations, and risk management, providing investors with a comprehensive approach to disciplined investing.
Morgan Stanley (NYSE:MS) is a leading global financial services firm providing investment banking, securities, investment management and wealth management services. With offices in more than 43 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.