Morgan Stanley Private Equity Fund Raises $2.3B, Hits Maximum Capacity

Morgan Stanley Investment Management Hits Hard Cap with Third Co-Investment Fund

Rhea-AI Impact

(Neutral)

Rhea-AI Sentiment

(Neutral)

Tags

04/14/2025 - 09:00 AM

NEW YORK--(BUSINESS WIRE)-- Morgan Stanley Investment Management (MSIM), announced today the final close of North Haven Private Equity Co-Investment Opportunities Fund III LP (PECO III) oversubscribed at its hard cap with approximately $2.3 billion in total commitments. PECO III offers private equity exposure through co-investments alongside best-in-class buyout managers operating primarily in the lower middle market.

PECO III is managed by Morgan Stanley Private Equity Solutions, the multi-manager private equity platform within MSIM’s $240 billion alternatives platform. The Fund is the successor to two dedicated co-investment funds – PECO I and PECO II – and the continuation of Morgan Stanley Private Equity Solutions’ 25-year track record executing co-investments, which includes nearly $6 billion of commitments since inception at Morgan Stanley in 1999.

Neha Champaneria Markle, the Head of Morgan Stanley Private Equity Solutions, said: “We have a long history of serving as a partner of choice to sought-after buyout funds, and the success of the PECO program is a testament to the quality and discipline of our stable of lower middle market GP relationships. We look forward to continuing to broadly support GPs whether as a limited partner, as a co-underwriting partner, as a warehouse provider, or as a financing source.”

“We are proud of the strength of our robust multi-manager private equity platform and our demonstrated ability to provide differentiated solutions to both private equity managers and investors on a global scale,” added David N. Miller, Global Head of Morgan Stanley Private Credit & Equity. “The Private Equity Solutions team leverages their distinct investment culture, expansive network of primary fund relationships, diligence and execution experience, and access to Morgan Stanley’s broader platform resources to consistently deliver attractive performance for investors.”

About Morgan Stanley Private Equity Solutions

Founded in 1999, Morgan Stanley Private Equity Solutions is a leading limited partner in private markets with a 25-year history of serving as a partner of choice to high-quality private equity managers. The Team’s broad private markets investment platform encompasses globally diversified fund of funds programs, custom mandates, and specialized programs offering exposure to external private equity funds, co-investments, secondaries, and venture capital, among other strategies. Since inception, the Team has committed over $27 billion to more than 1,200 private markets investments, positioning the group as one of the most experienced private markets investors in the world.

About Morgan Stanley Investment Management

Morgan Stanley Investment Management, together with its investment advisory affiliates, has over 1,400 investment professionals around the world and $1.6 trillion in assets under management or supervision as of March 31, 2025. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, client service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations, and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions, and individuals. For more information about Morgan Stanley, please visit www.morganstanley.com.