Morgan Stanley

Morgan Stanley Alternative Investment Partners Raises $500 Million for Private Markets Fund II

Mar 1, 2005

New York —

Morgan Stanley (NYSE: MWD) announced today that Morgan Stanley Alternative Investment Partners (Morgan Stanley AIP) raised $500 million in commitments for the Morgan Stanley AIP Global Diversified Fund LP, aka Private Markets Fund II.

"We are delighted by the response from clients to this new offering," said Cory Pulfrey, Co-Head of Morgan Stanley AIP. "We view the demand as a strong endorsement of our value-oriented investment approach. Private Markets Fund II has the same objective as Morgan Stanley Private Markets Fund I LP, launched in 2001: to provide eligible investors with superior risk-adjusted returns through global investments in primary funds, co-investments and direct secondaries."

Private Markets Fund II incorporates four strategies: U.S. Buyouts, European Buyouts, Global Venture Capital and Special Situations. Morgan Stanley AIP's investment strategy emphasizes less efficient market segments and targets managers with unique skill sets in the U.S., Western Europe, and emerging private equity markets like Japan. Morgan Stanley AIP currently expects that Private Markets Fund II, in addition to investing in private equity funds, will invest approximately 35% of its committed capital in a combination of secondary interests and direct co-investments made alongside high quality private equity managers and financial sponsors.

"We are opportunistic investors and source attractive investments across a broad spectrum of global opportunities. Our portfolios are diversified across multiple dimensions, and we continue to see interesting opportunities despite abundant capital in the asset class," said Tom Dorr, Chief Investment Officer, Private Markets Team.

"Private equity has experienced a resurgence with institutional investors," said Raj Gupta, Morgan Stanley's Global Head of Fixed Income and Alternatives. "Our capabilities are world-class, and client interest in our team has been tremendous."

About Morgan Stanley AIP:

Morgan Stanley Alternative Investment Partners (Morgan Stanley AIP) is Morgan Stanley's primary fund of private equity funds and fund of hedge funds manager, and is part of the broader Morgan Stanley Investment Management business. The Private Markets team of Morgan Stanley AIP oversees more than $3 billion in private equity commitments in funds of private equity funds and separately managed accounts and is one of the largest fund of private equity funds managers in the world

About Morgan Stanley:

Morgan Stanley is a global financial services firm and a market leader in securities, investment management and credit services. With more than 600 offices in 28 countries, Morgan Stanley connects people, ideas and capital to help clients achieve their financial aspirations.