Private Equity Fund Investing - Thematic
Private Equity Fund Investing - Thematic

Private Equity Fund Investing - Thematic


Provides focused exposure to private market interests within a single strategy category.

These themes may include distressed investments, income-oriented investments, real estate and real assets, geographic-specific strategies as well as dedicated secondaries and dedicated co-investment opportunities.

Investment Approach

We believe that positive returns in private markets are most consistently generated where investment talent is uneven and where specialized skills can be applied to unlock value within the underlying portfolio assets.

Our investment philosophy is based upon the following tenets:

(1) Opportunistic search for private equity alpha

We cast a wide net and seek to maintain flexibility in our portfolio architecture to accommodate an ever-evolving opportunity set.

2) Thematic perspective

We develop a point of view about what we believe to be the most attractive themes within specific market segments and seek to collaborate with experienced managers that in our opinion have the skill and ability to seek to capitalize on these themes.

3) High selectivity

We frequently invest in smaller, more specialized managers where we have found there is often less competition for capacity and greater sourcing and pricing inefficiency.

Differentiated Investment Approach

Focus on less efficient segments of the private equity market where we believe the potential for outperformance is greatest and manager selection skills are most highly rewarded.

Experienced, Purpose-built Global Team

Investment professionals have extensive experience and skill in sourcing, analyzing, and investing in private equity funds, co-investments and secondary transactions globally through economic cycles.

Integrated Approach to Co-investments and Secondaries

We have found that investing with smaller and lesser-known managers often enables the team to obtain preferential co-investment rights and access to off-market secondary transactions.

Conservative Approach to Growth in Assets under Management

The team's disciplined approach to growing assets under management and sizing each fund according to the market opportunity enables them to maintain a high degree of selectivity and to focus on what they view as the most compelling investment opportunities globally. Our investment philosophy is based upon the following tenets:

Investment Process
Define Investment Parameters

Analysis of the environment and the current market outlook.

Source Opportunities

Bottom-up search for what we believe to be the best talent.

Analyze Opportunities

Evaluate third-party investment funds through rigorous quantitative and qualitative due diligence.

Invest and Monitor

Formal Investment Committee approval required before capital is allocated.  Continuous monitoring of investment throughout the life of the fund.

Portfolio Managers
Head of the AIP Private Markets Team
30 years industry experience
Managing Director
28 years industry experience
Consultant – AIP Private Markets Team
32 years industry experience
Managing Director
17 years industry experience
Executive Director
12 years industry experience
Executive Director
17 years industry experience
Executive Director
16 years industry experience
Executive Director
18 years industry experience
Executive Director
21 years industry experience
Managing Director
15 years industry experience

Alternative investments are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are suitable only for long-term investors willing to forego liquidity and put capital at risk for an indefinite period of time. Alternative investments are typically highly illiquid – there is no secondary market for private funds, and there may be restrictions on redemptions or assigning or otherwise transferring investments into private funds. Alternative investment funds often engage in leverage and other speculative practices that may increase volatility and risk of loss. Alternative investments typically have higher fees and expenses than other investment vehicles, and such fees and expenses will lower returns achieved by investors.

This communication is only intended for and will be only distributed to persons resident in jurisdictions where such distribution or availability would not be contrary to local laws or regulations. This is prepared for sophisticated investors who are capable of understanding the risks associated with the investments described herein and may not be appropriate for you.  The information presented represents how the portfolio management team generally implements its investment process under normal market conditions.

All information provided has been prepared solely for information purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The information herein has not been based on a consideration of any individual investor circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. To that end, investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.  There is no guarantee that any investment strategy will work under all market conditions, and each investor should evaluate their ability to invest for the long-term, especially during periods of downturn in the market. 

A separately managed account may not be suitable for all investors. Separate accounts managed according to the Strategy include a number of securities and will not necessarily track the performance of any index. Please consider the investment objectives, risks and fees of the Strategy carefully before investing. A minimum asset level is required. For important information about the investment manager, please refer to Form ADV Part 2.

Any views and opinions provided are those of the portfolio management team and are subject to change at any time due to market or economic conditions and may not necessarily come to pass. Furthermore, the views will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing, or changes occurring. The views expressed do not reflect the opinions of all portfolio managers at Morgan Stanley Investment Management (MSIM) or the views of the firm as a whole, and may not be reflected in all the strategies and products that the Firm offers.

Diversification does not protect you against a loss in a particular market; however it allows you to spread that risk across various asset classes.  Past  performance is no guarantee of future results.

Real estate values are affected by many factors including interest rates and property tax rates, zoning laws, changes in supply and demand, and in the local, regional and national economies.

In the ordinary course of its business, Morgan Stanley engages in a broad spectrum of activities including, among others, financial advisory services, investment banking, asset management activities and sponsoring and managing private investment funds. In engaging in these activities, the interest of Morgan Stanley may conflict with the interests of clients.

Funds of funds often have a higher fee structure than single manager funds as a result of the additional layer of fees. Alternative investment funds are often unregulated, are not subject to the same regulatory requirements as mutual funds, and are not required to provide periodic pricing or valuation information to investors. The investment strategies described in the preceding pages may not be suitable for your specific circumstances; accordingly, you should consult your own tax, legal or other advisors, at both the outset of any transaction and on an ongoing basis, to determine such suitability.

Team members may change from time to time.

No investment should be made without proper consideration of the risks and advice from your tax, accounting, legal or other advisors as you deem appropriate.

The statements above reflect the opinions and views of Morgan Stanley AIP as of the date hereof and not as of any future date and will not be updated or supplemented. All forecasts are speculative, subject to change at any time and may not come to pass due to economic and market conditions.

Past performance is not indicative of future results. Diversification does not eliminate the risk of loss. Morgan Stanley and its affiliates do not, directly or indirectly, guarantee, assume or otherwise 


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