Mr Magus will share stewardship of the Morgan Stanley Private Equity (MPSE) fund with Graham Keniston-Cooper. News of Mr Magus' appointment comes as speculation grows that the private equity sector is in decline, with a number of banks beginning to refuse to finance deals.
However, according to Mr Magnus the downturn in the sector represents a blip rather than evidence of a sustained decline.
He told British daily the Times: "The private equity trend is not going away. It may be temporarily in remission, but long-term it is only going to get bigger."
Mr Magus has been involved with several of Morgan Stanley's largest deals in Europe, including Marks & Spencer's successful rebuff of a buyout bid from Arcadia and the takeover of Allied Domecq by drinks group rival Pernod Ricard.