Morgan Stanley Credit Partners, which is part of the firm’s Merchant Banking & Real Estate Investing business, has raised approximately $1 billion of commitments for Morgan Stanley Credit Partners II, LP, the firm’s second investment fund targeting corporate mezzanine debt issued by middle market companies in North America and Western Europe.
Investors in Morgan Stanley Credit Partners II (MSCP) are comprised of institutions and high net worth individual investors as well as Morgan Stanley and the fund’s investment team. The institutional participation in the fund is more than double the size by dollars compared to its predecessor fund, and the fund has already invested more than $144 million in four portfolio companies.
“This significant capital raise for MSCP speaks to the strength of the team’s rigorous, credit-centric investment approach and the strong investment performance they have achieved,” said Ed Moriarty, Head of Merchant Banking & Real Estate Investing. “Our clients appreciate the differentiated approach Credit Partners brings to this opportunity set as well as the benefits the team maintains by being part of the Merchant Banking & Real Estate Investing platform, including access to Morgan Stanley’s global network as well as resources dedicated to providing best-in-class operations, risk, reporting and client service.”
MSCP looks to invest in companies in North America and Western Europe with EBITDA of $15 million and over. Typical investment size ranges from $20 million to $65 million. Investments are made to support leveraged buyouts, debt refinancings, recapitalizations and acquisitions.
“Our clients recognize that mezzanine debt presents a compelling investment opportunity, and we are pleased with the strong support we have received from a wide range of investors,” said Hank D’Alessandro, Managing Director and Head of Morgan Stanley Credit Partners. “Our Credit Partners investment team continues to focus on finding investment candidates that have leading market positions and generate strong free cash flow and returns on invested capital. We bring a partnership approach to our relationships with financial sponsors and management teams, and look for investment opportunities where the companies that join our portfolio can benefit from the access to the network and resources of a global financial services firm.”
Morgan Stanley (NYSE:MS) is a global financial services firm providing investment banking, securities, investment management and wealth management services. The firm is headquartered in New York and has offices in more than 43 countries around the world (www.morganstanley.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 1-8-15