Morgan Stanley closes mezz fund

According to Morgan Stanley, the fund primarily invests in mid-market companies for the purpose of buyouts, debt refinancing, acquisitions and recapitalizations across all sectors. It specifically focuses on North America and Western European targets, and to date has injected more than $160 million in five portfolio companies. Its average ticket size is $20-50 million per investment.

"The demand for alternative investments, combined with the team's leveraged finance expertise and ability to leverage Morgan Stanley's global resources and relationships, contributed to the strong response from investors," Gregory Fleming, President of Morgan Stanley Investment Management and Global Research, said in a statement.

The fund's close comes as the global economy, and that of Morgan Stanley, continues to recover from the financial crisis, and, according to Hank D'Alessandro, Managing Director and Head of Morgan Stanley Credit Partners, the changing landscape has provided a niche for such a fund. "The market for mezzanine debt investing is benefiting from favorable secular trends resulting from an underlying imbalance between the demand for and the supply of capital, particularly for middle market companies," he said in a release. "We already have a robust investment pipeline in place, and we believe the Fund is well-positioned to continue to benefit from these dynamics."

 

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• Topics
• Mezzanine
• North America
• Morgan Stanley