Morgan Stanley

Morgan Stanley Raises New Asia-Dedicated Private Equity Fund

Oct 2, 2007

Sydney —

 

Morgan Stanley (NYSE:MS) today announced that its Asia private equity group, Morgan Stanley Private Equity Asia (MSPE Asia), has raised aggregate commitments of approximately US$1.5 billion for Morgan Stanley Private Equity Asia III, L.P. (the Asia Fund), the Firm’s third investment vehicle targeting private equity investments in Asia.  MSPE Asia, which is part of the Firm’s global private equity group within the Merchant Banking Division, will manage the Fund.

“The new fund will allow clients and investors, as well as the Firm, to capitalize on growth opportunities in Asia through direct investments,” said Hans Schuettler, Chief Executive Officer, Morgan Stanley Asia. “In addition, it reflects our commitment to principal investing in the region, not only in private equity, but also in real estate and other opportunities across the capital structure.”

The investor group is comprised of leading global institutions and high net-worth individuals, as well as Morgan Stanley and its employees.

The Asia Fund will invest in leading businesses located across the region with strong value propositions and has already begun to review investment opportunities. It will have a traditional five-year investment period followed by a five-year harvest period.

“Morgan Stanley has been an active and successful private equity investor in the region since 1993,” said Chin Chou, Chief Executive Officer of MSPE Asia. “We will continue our valueoriented investment strategy, focused not only on opportunities in China, South Korea, Singapore and Taiwan, where we have established track records, but also on other important markets such as Japan, India and Australia.”

Mr. Scott Hahn, Chief Investment Officer of MSPE Asia, added, “We are very pleased with the positive reception to our third and largest fund directed at Asia and believe that market conditions present advantages as the Asia Fund begins to invest capital.”

Stephen Trevor, co-head of both Morgan Stanley’s global private equity business and its Merchant Banking Division, said, “Asia continues to be a primary focus area for the Firm’s merchant banking activities. Morgan Stanley’s franchise in the region has allowed us to access the highest quality, differentiated investment opportunities for our investor clients, which have consistently led to strong investment returns.”

MSPE Asia is one of the leading private equity investors in Asia Pacific. The group has invested in the region for more than 14 years, developing one of the leading investment track records during that time. The group has made a number of investments in businesses throughout Asia, including most recently Belle International, Dongxiang Sports and Shanshui Cement in China, Rotem and Ssangyong Corporation in South Korea, CTCI Corporation in Taiwan, and Asia Capital Reinsurance in Singapore. In addition, it previously invested in Ping An Insurance and Mengniu Dairy in China, eAccess in Japan, HTL International in Singapore and Landmark Investment Trust Company in South Korea.

MSPE Asia is part of Morgan Stanley’s global private equity business within Merchant Banking, a division of Morgan Stanley Investment Management. Merchant Banking sponsors traditional private equity funds, infrastructure-focused funds, and one of the industry’s leading real estate investing platforms globally. By leveraging the Morgan Stanley network and brand to generate ideas, harness relationships and create investment opportunities, Morgan Stanley’s Merchant Banking Division delivers superior returns for its investor clients.

Morgan Stanley 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 600 offices in 32 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.

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