Morgan Stanley Launches Private Equity Fund of Funds

Stephen Harris

9 March 2005

Morgan Stanley’s alternative investments group has raised $500 million in commitments for a fund of private-equity funds specializing in buyouts, venture capital and special situations. Morgan Stanley AIP Global Diversified Fund LP, also known as Private Markets Fund II, will also pursue co-investments and secondary interests alongside the private-equity funds and financial sponsors. Buyouts will be targeted in the US and Europe, venture capital and arbitrage opportunities will be sought worldwide. The company launched a similar fund, Private Markets Fund I, in 2001. Morgan Stanley AIP is the bank’s primary manager of "funds of private-equity funds" and "funds of hedge funds." The Private Markets team manages more than $3 billion in funds of private-equity funds and managed account