Morgan Stanley Private Equity and Jesús Reyes-Heroles Announce Partnership

New York —

Morgan Stanley Private Equity has formed a strategic partnership with Jesús Reyes-Heroles, the former Director General of Petróleos Mexicanos (PEMEX), to pursue energy investments in Mexico and across Latin America.  The goal of the partnership is to build a leading regional energy company involved in a broad base of investments and related activities across the energy sector.  The partnership will focus on investments in energy companies to help enhance business growth, improve profitability and provide valuable strategic and financial guidance.

Dr. Reyes-Heroles is an experienced executive in both the private and public sectors of the Mexican energy industry.  In the public sector, he served as Director General (CEO) of PEMEX from 2006 until 2009.  Previously, he served as Secretary of Energy in President Ernesto Zedillo's cabinet from 1995 to 1997, during which time he was President of the Board of several state businesses including Petróleos Mexicanos and Comisión Federal de Electricidad (CFE).  Dr. Reyes-Heroles also served as CEO of Banco Nacional de Obras y Servicios Públicos (Banobras) in 1995.  In addition, Dr. Reyes-Heroles was Mexico’s Ambassador to the United States of America from 1997 to 2000.

In the private sector, Dr. Reyes-Heroles founded GEA Grupo de Economistas y Asociados in 1990, a leading economic, financial and political consulting company.  GEA has overseen and consulted on a number of investment projects in multiple sectors, including energy.  He holds a B.A. in economics from the Instituto Tecnológico Autónomo de Mexico and a Ph.D. in economics from the Massachusetts Institute of Technology (MIT).

“The Mexican energy industry is undergoing substantial structural change, driven by legal and regulatory reforms, in order to advance the country’s stated goals of increasing energy supply to satisfy growing demand and maximize economic value of its vast natural resources.  Now is an attractive time to invest in Mexican energy companies; they are poised to capture meaningful growth opportunities,” said Dr. Reyes-Heroles.  “Morgan Stanley Private Equity has a strong track record investing in energy and offers the valuable resources of a global financial services firm.  I look forward to working together to create a world-class platform with investments across multiple sectors within the energy industry.”

“Through his service as Mexico’s Secretary of Energy and as former Director General of PEMEX, Dr. Reyes-Heroles has an unmatched network of relationships across the energy industry in North and South America, which will be invaluable in generating attractive new investment opportunities for Morgan Stanley Private Equity.  We expect that his exceptional leadership experience will bring value to our entire energy portfolio,” said John Moon, a Partner and Managing Director of Morgan Stanley Private Equity.  “We are delighted to continue Morgan Stanley Private Equity’s long history of collaborating with best-in-class executives in this exciting new initiative with Dr. Reyes-Heroles.”

Morgan Stanley Private Equity, part of Morgan Stanley Investment Management, makes private equity and equity-related investments on a global basis.  Morgan Stanley Private Equity utilizes Morgan Stanley's vast resources, including the Firm's global franchise and relationships with leading corporate management teams and financial sponsors, to source attractive opportunities for its investment funds.  Morgan Stanley's roots in private equity investing date back to 1985 with the Morgan Stanley Capital Partners private equity funds.  To date, Morgan Stanley Private Equity and its affiliated funds have invested over $8 billion of equity across a broad spectrum of industries.  For further information about Morgan Stanley Private Equity, please visit www.morganstanley.com/privateequity.

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services.  The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,300 offices in 43 countries.  For further information about Morgan Stanley, please visit www.morganstanley.com.

For additional information, please contact:

Morgan Stanley, Matt Burkhard, Phone: (212) 761-2444, Email: matt.burkhard@morganstanley.com

Jesús Reyes-Heroles, Marco Provencio, Phone: +(52) 555 442 4948, Email: mp@proa.structura.com.mx