Morgan Stanley Said to Seek $4 Billion for InfrastructureSabrina Willmer
Morgan Stanley’s infrastructure investment unit plans to seek $4 billion for a second global fund, according to two people with knowledge of the matter.
At that size, the new pool from Morgan Stanley Infrastructure Partners would be the same size as the prior vehicle from 2008, which originally targeted $2.5 billion. The New York-based bank plans to officially start raising money in the coming weeks, said one of the people asking not to be named because the plans haven’t been made public.
Morgan Stanley, the biggest financial brokerage, is among a number of firms targeting billions of dollars globally for investments related to public works. Toronto-based Brookfield Asset Management Inc. is seeking $5 billion for a private infrastructure fund, according to a March agenda from New Mexico State Investment Council. As of the end of the first quarter, 144 unlisted infrastructure funds were trying to gather $93 billion in capital, according to data from London-based research firm Preqin Ltd.
Matt Burkhard, a spokesman at Morgan Stanley, declined to comment on the company’s fundraising plans.
Morgan Stanley Infrastructure, which has teams in North America, Europe and Asia, invests in assets that provide public goods and services in sectors such as transportation, communications, energy and utilities, according to its website.
The infrastructure team has experienced turnover since raising its first fund. Sadek Wahba, its chief investment officer and global head, left the firm in late 2011, according to another person familiar with the matter.
Morgan Stanley named Markus Hottenrott, one of three co-heads of the infrastructure business, to run the unit on his own earlier this month. Anne Valentine Andrews, one of the team’s co-heads, is leaving the firm, while the other co-head, Jim Wilmott, will stay to run the Europe business.
Morgan Stanley also named Chris Koski as global head of investment strategy. Koski, who was global head of infrastructure at the Abu Dhabi Investment Authority, joined the bank’s infrastructure team earlier this year.