Morgan Stanley Alternative Investment Partners raised about $1.3 billion in commitments for a pool that will invest in private-equity funds.
The fund-of-funds business received about $720 million in commitments for its Morgan Stanley Private Markets Fund V and $580 million for related accounts, New York-based Morgan Stanley said today in a statement. The fund and accounts will invest in managers worldwide with strategies in buyouts, venture capital and special situations, which can include spinoffs, mergers and bankruptcies.
Chief Executive Officer James Gorman said shortly after he took over in 2010 that “there’s no reason” Morgan Stanley couldn’t have the world’s largest fund-of-funds business. Alternative Investment Partners ranked 18th in assets among fund of funds as of March 31, 2010, according to a report by The Hedge Fund Journal. Morgan Stanley’s alternative asset management, which includes the AIP unit, had $7.8 billion of net deposits in the fourth quarter, bringing assets under management to $25 billion.
“We are very gratified by the success of our business-development efforts in this challenging fundraising environment,” Jacques Chappuis, head of AIP, said in the statement.
The amount raised exceeded the initial $1.25 billion target, the bank said.
The unit manages portfolios of hedge funds, private-equity funds and real-estate funds, helping investors spread their money across holdings.