Morgan Stanley’s Newest Middle-Market Equity Fund Astounds with a $3.2 billion Raise Amid Positive Exit Landscape

Morgan Stanley Capital Partners is reaching new heights, with its latest middle-market private equity fund raising a staggering $3.2 billion in a meagre 12 months. This is a 60% rise from its predecessor, signaling strength and resilience in a market that is seen by many as littered with obstacles and challenging to navigate.

The head of Morgan Stanley Capital Partners, Aaron Sack, speaks to the increasingly crowded landscape and exciting developments, attributing the fund’s success to off-cycle marketing to LPs, portfolio investment exits, and new institutional relationship development. Close to $1 billion came via the private wealth channel, while the rest was arguably credited to existing and new global institutional investors.

Despite these exciting figures, analysts at PitchBook advise a note of caution, predicting that this trend is not here to stay. Nevertheless, it’s worth acknowledging Morgan Stanley’s successful stride in a challenging fundraising environment.

This fund’s investments are focused on acquiring majority stakes in US middle-market companies with service business models spanning across various sectors such as consumer, business, healthcare, and industrial. Only a year in, the fund is already 17% deployed, reflecting a proactive investment strategy. With investments made in American Restoration, FoodService, and Thermogenics, the fund promises further exciting ventures.