Morgan Stanley fund exceeds $500m investment target

19 May 2010

Morgan Stanley Alternative Investment Partners (AIP) has exceeded its initial investment target by closing at $585 million.

According to Morgan Stanley Investment Management (MSIM), the fund raised the capital for the financial institution’s Global Secondary Opportunities Fund (GSOF), which is expected to target secondary private equity investments.

The target for the asset management division was originally set at $500 million, the financial institution explained.

Earlier in the year, MSIM closed the AIP Phoenix Global Real Estate Secondary fund investment vehicle after £370 million in
commitments was raised.

John Wolak, head of Secondary Investing for AIP Private Equity Fund of Funds and Lead Portfolio Manager for GSOF, said: “We think the market for secondaries is poised for substantial growth in 2010, and we believe that our solutions-oriented approach to secondary investing will continue to be attractive to both sellers and the general partners of the funds we purchase.”

He added that in the future, the fund will continue to target distressed, specialist situation funds and small-to mid-sized managers.

Figures from AIP show it has an estimated $17 billion worth of assets under management as of the end of March this year.

By Jim Ottewill

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