Morgan Stanley Investment Management has closed its inaugural North Haven Growth & Innovation Fund with $1.3 billion in capital commitments after the strategy was oversubscribed.
The fund is designed to invest in category-defining private growth companies while drawing on resources across Morgan Stanley’s Investment Management, Institutional Securities and Wealth Management businesses.
Morgan Stanley, its affiliates and employees collectively committed 24% of the fund’s capital, representing more than $300 million of alignment with outside investors.
The strategy is part of Morgan Stanley Investment Management’s approximately $280 billion Alternatives platform.
It targets private companies with established execution, high growth, large addressable markets, strong management teams and exposure to sustained technological innovation.
The fund can provide capital through both primary and secondary transactions, including company-led liquidity programs.
Existing investments include Databricks, defense technology company Anduril and fintech company Ramp.
Morgan Stanley sees an expanding opportunity in growth-stage private companies as successful technology businesses remain private for longer and an increasing amount of enterprise value is created before an IPO.
The broader Morgan Stanley Investment Management organization oversees or manages approximately $2 trillion globally.
KEY QUOTES:
“Many of today’s leading growth companies are staying private for longer, with more value creation occurring in the private markets.”
“We believe this creates an opportunity to partner with category-defining companies, providing flexible capital and drawing on the broader capabilities of Morgan Stanley to support them as they scale.”
Pedro Teixeira, Managing Director of Private Credit & Equity at Morgan Stanley Investment Management