Morgan Stanley Credit Partners

Morgan Stanley Credit Partners was established in 2009 as a core strategy within Morgan Stanley Merchant Banking. The Fund has approximately $1 billion of capital under management and invests primarily in privately issued mezzanine and related debt instruments issued by corporations in the context of leveraged buyouts, debt refinancings, recapitalizations and acquisitions, in both the United States and Western Europe. The investment team consists of eight dedicated professionals based in New York.

Key Facts

• Focused on privately negotiated corporate mezzanine debt investments
• Target investment size of $20 million to $65 million with the ability to partner with other funds to participate in larger transactions
• Seek to invest in a combination of subordinated debt and equity in the form of warrants or direct equity co-investment
• Typically focus on companies with EBITDA of over $15 million, predominantly in the U.S. and Western Europe. Investments will include capital for leveraged buyouts, debt refinancings, recapitalizations and acquisitions
• Experienced team of financial professionals with asset management, leveraged finance, principal investing, structuring, origination, and research experience

Investment Approach

• Target companies with the following characteristics:
• Track record of recurring and stable cash flow
• High barriers to entry
• Attractive return on invested capital
• Leverage Morgan Stanley’s global platform to conduct thorough research and rigorous due diligence
• Provide financing for conservative capital structures with prudent covenants and terms
• Diversity of industries, geographies, and vintages

Benefits of Morgan Stanley Credit Partners to Financial Sponsors and  Borrowers

• Speed and confidentiality: prefer to be the sole lead investor but will partner with other funds on large transactions
• Certainty of financing: secondary market execution risk is mitigated with a direct lending strategy
• Flexibility of terms: each agreement will be negotiated with regard for the borrower’s business, industry, and strategic needs
• Long-term partnership: buy and hold strategy aligns our incentives with the long-term success of the borrower
• Access to Morgan Stanley resources and intellectual capital: allows each portfolio company to leverage the Firm’s network to maximize business potential

The information on these pages is intended solely for the benefit of issuers and others seeking mezzanine debt financing. The information contained herein does not constitute and should not be construed as an offering of advisory services or an offer to sell or solicitation to buy any securities in any jurisdiction in which such offer or solicitation, purchase or sale would be unlawful under the securities, insurance or other laws of such jurisdiction.