Morgan Stanley Alternative Investment Partners (AIP) has raised $770 million in commitments for the Morgan Stanley Global Secondary Opportunities Fund LP II (GSOF II), a fund dedicated to acquiring interests in private equity funds in the secondary market. The capital raised exceeded the initial $600 million target.
GSOF II invests in off-market secondary opportunities with an emphasis on small- and mid-cap buyouts and special situations funds. Investors include existing AIP clients and new limited partners, such as endowments, foundations, public and corporate pension plans, family offices, insurance companies and high net worth individuals.
“This successful fundraising demonstrates the strength of our investment approach and our talented team,” said John Wolak, Co-Head of AIP Private Equity and Head of the AIP Private Equity Secondary team. “As an integrated platform participating in both the primary and secondary markets, AIP is well-positioned to employ its differentiated investment approach to take advantage of secondary opportunities globally.”
GSOF II is the successor fund to AIP’s 2009 vintage secondary fund, Morgan Stanley Global Secondary Opportunities Fund I LP, a $585 million fund that completed its investment program in 2012.
“We believe substantial opportunities continue to exist in areas of the market where we focus and that our solutions-based approach to secondary investing will remain attractive to both sellers and general partners through all phases of the economic cycle. We recently completed several restructuring deals and believe these types of deals are an ever-important and growing part of the broader secondary market,” said Jon Costello, Senior Portfolio Manager for the AIP Private Equity Secondary team. “We continue to be a buyer of secondaries across our platform and will continue to focus on what we believe are less efficient segments of the secondary market globally.”
Morgan Stanley Alternative Investment Partners is part of Morgan Stanley Investment Management which specializes in assisting investors in the design, integration and management of alternative investment programs (www.morganstanleyaip.com).
“The AIP team of private equity professionals is one of the most experienced and knowledgeable in the industry,” said Arthur Lev, Head of AIP. “We are proud that our investment expertise, world-class service for clients and reputation for excellence have led to this successful fundraising result.”
© 2013 PEPD • Private Equity’s Leading News Magazine • 7-2-13
