E9 • October 12, 2026 • 8 mins
Long-term value creation in private equity can be shaped by active ownership and thoughtful planning. Brian Holzer, Head of Alternative Investments, sits down with Viral Patel, CEO and Board Member of BXPE at Blackstone, to discuss manager capabilities across the investment lifecycle and the megatrends drawing private capital.
[COLD OPEN]
BRIAN HOLZER: Much of today’s investment universe is in the private markets. Over 80% of U.S. companies that generate more than a hundred million in revenue are private.
VIRAL PATEL: Gone are the days where you can just buy something and just do a beta play and watch it increase over time. Now you really have to have a plan.
[CUT TO THE ALTS REPORT OPENING SEQUENCE]
[INTRODUCTION – BRIAN HOLZER]
Lower thirds:
Brian Holzer
Head of Alternative Investments
Morgan Stanley Wealth Management
00:00:35
Brian Holzer Welcome to The Alts Report, where we explore the value of alternative investments and the trends shaping today's markets. Today, we are on site at Blackstone's global headquarters shooting this episode, and I'm pleased to have Viral Patel, Senior Managing Director with Blackstone Private Equity, join us.
00:00:50
Our topic is private equity, a type of investment that involves acquiring an ownership stake in a private company or taking a public company private with a focus on long-term value creation. Over the last few decades, we've seen a major shift across both public and private markets.
00:01:05
Much of today's investment universe is in the private markets. Over 80% of U.S. companies that generate more than a hundred million in revenue are private, while the number of public companies in the U.S. has declined by about 40% since 2000. At the same time, innovative investment structures like evergreen funds have made private equity more accessible.
[DISCUSSION]
[SEGMENT 1: PRIVATE EQUITY IN A LONG-TERM PORTFOLIO]
On-screen question: Where does private equity fit in a long-term portfolio?
00:01:25
Brian Holzer So Viral, thanks for having us. To start where does private equity fit in a long-term portfolio?
00:01:30
Viral Patel It's a great question, and I think it's actually helpful to look at how our institutional investors who have allocated to private equity for a long time now, like how they're using it in their portfolios. And I think what you find is that on average, if you speak to large institutions like pension plans, they can have 20, 30 percent of their portfolio into alternative assets and private equity being a portion of that.
Lower thirds:
Viral Patel
CEO and Board Member of BXPE
Blackstone
00:01:55
But if you speak to families, endowments, sometimes they can be 50, 60%. So really large allocations to the asset class and you really hear two things as to why those investors are putting private equity into their portfolios. And those two things are a diversification benefit and then the potential to earn increased returns.
00:02:16
And just touching on those one by one, the diversification benefit is actually what you just said honestly in your intro. When you think about the global economy and you try to think about building a portfolio of equity exposures, you want access to as much breadth as you can. If you try to do that in just the public markets, you're getting 10, 20 percent of the overall global economy. So private markets may add diversification and get you access to that real economy that's out there.
00:02:44
And then the second is over long periods of time, at least historically, private equity has delivered excess returns over public markets. So typically what folks are looking for is that diversification benefit and the potential to get a little bit increased return. Now, you give up some liquidity in order to do that, but the benefits of diversification and potential higher returns are the trade-offs that investors have made to add that exposure into portfolios.
[SEGMENT 2: WHAT MAKES A SUCCESSFUL MANAGER]
00:03:10
Brian Holzer So let's go to the manager side. What capabilities make a successful private equity manager?
On-screen question: What makes a successful private equity manager?
00:03:16
Viral Patel Well, private equity at its core is a lot simpler than people think, right? But really, what are we doing? We’re sourcing companies, we're underwriting them to figure out whether we want to invest within it, and then we're focused on value creation. So maybe just touching on those three core capabilities for a manager.
00:03:35
Starting with sourcing, sourcing starts with having a point of view on where the world is going. What are the data sets that private equity managers have that help give them insight into where the world is going, the themes that they should be investing behind? How broad is their network? How long have they been doing this, right? A lot of deals that get done are actually not necessarily in broadly marketed auctions. A lot of deals that actually get done are proprietarily sourced. And so does that private equity manager have a network, a set of investors, advisors, that can help them go source proprietary opportunities? Because that's where you may find enhanced returns. So that's kind of one piece of it on the sourcing side.
00:04:15
The underwriting is critical, meaning how good are you at identifying the risks and the opportunities within a company. And both of those are actually quite important. We spend a lot of time thinking about what are the areas that we're gonna have to spend more time on with the business, as an industry to improve it. What are the opportunities and things that people can go do with it?
00:04:35
And that really takes me to my third point, because I think private equity today, it's just a lot different than it was 20, 30 years ago. Gone are the days where you can just buy something and just do a beta play and watch it increase over time. Now, you really have to have a plan.. You have to find some way to improve value. Because that potential for enhanced return that we talked about earlier, that comes from a private equity manager being an active owner of a business and driving transformation when successful. That's really the key capability set that differentiates strong managers from weaker ones.
[SEGMENT 3: MEGATRENDS]
00:05:07
Brian Holzer Maybe to close this out, which megatrends are creating the greatest opportunity for investors?
On-screen question: Which megatrends are creating opportunities for investors?
00:05:13
Viral Patel I think in today's market environment, it's hard not to start with AI, right? So look, we are big believers in AI. We have a strong point of view that as AI continues to evolve, as it continues to get adopted, both in enterprise and consumer use cases, you're going to see meaningful changes across the economy. And so we think there are real opportunities to invest across the AI value chain, everything from the energy in the power ecosystem to data centers, the services economy around those data centers, the model layer, and increasingly into applications. So up and down that value chain.
00:05:48
Today, that digital infrastructure is probably the area where we're seeing the most opportunity, but over time we do think that opportunity set will evolve to be much more onto the application side. The second thing I would point to would be maybe the other side of the coin, meaning areas of the economy that AI is less likely to disrupt. And so aerospace and defense today would fit into that mold.
00:06:12
I would also say areas of the economy that are tied to live experiences, more of that experiential approach. We're approaching a part of society now where most of us are spending more time on experiences, travel, leisure, hospitality, those sorts of areas. We think that's an increasingly important area.
00:06:31
And then third, power energy globally. So this idea of national resilience has gotten very important. Some of the power needs are driven by the data center build out, but increasingly energy security is becoming something globally that everyone is thinking about. So those are a few themes that we think today are things investors should be paying attention to.
00:06:50
Brian Holzer This was great. Thank you for having us. We appreciate you all joining us for this edition of The Alts Report. To learn more about alternative investments and our platform at Morgan Stanley, please visit MorganStanley.com/alts or reach out to your Morgan Stanley financial advisor or private wealth advisor. We look forward to seeing you next time.
SOURCE INFORMATION
· Over 80% of U.S. companies that generate more than a hundred million in revenue are private. Source: Capital IQ. U.S. public and private operating companies and subsidiaries with annual revenue greater than $100 million. Based on latest available fiscal year data as of June 10, 2026.
· The number of public companies in the U.S. has declined by about 40% since 2000. Source: World Bank: Listed domestic companies, total - United States. Data through December 31, 2025.
· Allocation to alternative investments across pensions, family offices, and endowments.
o Source for pensions: Preqin, “KPERS Raises Alternatives Allocation Cap as Funding Shortfalls Persist,” May 21, 2024. Among 708 U.S. public pension funds representing $5.9 trillion in assets, the average target allocation to alternatives was just under 26%. Separately, 1,785 U.S. private pension plans representing $3.8 trillion had a 2023 weighted-average allocation of 19.1% to alternatives.
o Source for family offices: Morgan Stanley Private Wealth Management and Botoff Consulting, “Compensation Practices of Investment-Focused Family Offices,” 2025, page 15. Based on a 2024 survey of 433 U.S.-based family offices and related family investment firms, including 113 investment-focused firms. Private equity, real estate, hedge funds and venture capital represented a combined 52% of AUM among all participating firms and 57% among investment-focused firms, calculated from the individual asset allocation categories reported in the study.
o Source for endowments: 2025 NACUBO-Commonfund Study of Endowments®, FY2025 press release, February 12, 2026. Study data reflect 657 U.S. higher education institutions and affiliated foundations with $944.3 billion in endowment assets; on a dollar-weighted basis, 54.5% of assets were allocated to private/alternative strategies, rising to 62.5% among endowments over $5 billion.
· Public equity markets represent only a portion of the global economy. Source: Blackstone, Rethinking the 60/40 Portfolio. Approximately 86% of companies with more than $250 million in revenue are privately held, according to Capital IQ as of June 2024. Figure represents the share of companies based on the total number of public and private companies in North America, Europe, and Asia that have reported 2024, 2023, or 2022 fiscal year revenues greater than $250 million per Capital IQ’s company database.
· Historically, private equity has delivered excess returns over public markets. Source: Morgan Stanley Wealth Management Global Investment Office, FactSet. Annualized total returns as of June 30, 2025. U.S. Private Equity Index Data is represented by the U.S. Cambridge Associates Private Equity Index. Global Private Equity sourced from Cambridge Associates Global Private Equity Index and includes buyout and growth equity. U.S. Public Equity represented by the S&P 500 Total Return Index. Global Public Equity represented by the MSCI ACWI index. U.S. and Global Private Equity data subject to 5-month lag; therefore, all asset classes are depicted as of displayed date for consistency. Private equity returns are net to limited partners. MSCI ACWI returns are based off of price, not total return, in order to get a full data set starting in 1990. Non-traded investments are not valued as frequently as traded markets, which impacts volatility measures. Additionally, there are significant liquidity differences between public and private equities, as public equities can provide liquidity and greater access to company information and private equities have a longer time horizon and are illiquid.
o Cambridge Associates Private Equity Index: Tracks the returns of a variety of private equity strategies, including buyout, control-oriented distressed, growth equity, energy, upstream energy and royalties, and venture capital. The data is updated quarterly using the Cambridge Associates Benchmark Calculator, with a lag of several months. Private equity returns are net to limited partners, reflecting fees, expenses and carried interest.
o S&P 500 Total Return Index: Index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is meant to reflect the risk/return characteristics of the large cap universe. Companies included in the index are selected by the S&P Index Committee, a team of analysts and economists at Standard & Poor's. The S&P 500 is a market value weighted index - each stock's weight is proportionate to its market value.
o MSCI ACWI: The Morgan Stanley Capital International All Country World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 45 country indexes comprising 24 developed and 21 emerging market country indexes.
· Past performance is not indicative of future results. Private- and public-market indexes differ materially in composition, valuation frequency, liquidity and calculation methodology. Private-equity results are reported with a lag and are net of fees, expenses and carried interest. MSCI ACWI returns reflect price returns and exclude dividends. Indexes are unmanaged and are not directly investable.
IMPORTANT DISCLOSURES
Morgan Stanley Smith Barney LLC ("Morgan Stanley Wealth Management") - IMPORTANT DISCLOSURES
Morgan Stanley Wealth Management acts as a placement agent in connection with the offering and sale of the securities of the fund to current and prospective clients of Morgan Stanley Wealth Management or its affiliates. Morgan Stanley Wealth Management will receive cash compensation for its activities as placement agent from the fund’s manager, as described in Morgan Stanley Wealth Management’s point of sale letter, if applicable. In addition, Morgan Stanley Wealth Management, its affiliates or employees, may have additional relationships with the fund’s manager, including as an investor in the fund or other investment vehicles managed by the fund’s manager or as a client of the fund’s manager. The payment of cash compensation to Morgan Stanley Wealth Management, and any additional relationships that Morgan Stanley Wealth Management or its affiliates may have with the fund’s manager or other investment vehicles managed by the fund’s manager, create material conflicts of interest for Morgan Stanley Wealth Management in its role as placement agent.
All expressions of opinion are subject to change without notice and are not intended to be a forecast of future events or results. Further, opinions expressed herein may differ from the opinions expressed by Morgan Stanley Wealth Management and/or other businesses/affiliates of Morgan Stanley Wealth Management.
Alternative investments often are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are appropriate only for eligible, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. They may be highly illiquid and can engage in leverage and other speculative practices that may increase the volatility and risk of loss. Alternative Investments typically have higher fees than traditional investments. Investors should carefully review and consider potential risks before investing.
The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be appropriate for all clients. Any product discussed herein may be purchased only after a client has carefully reviewed the offering memorandum and executed the subscription documents. Morgan Stanley Wealth Management has not considered the actual or desired investment objectives, goals, guidelines, or factual circumstances of any investor in any fund(s). Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance.
As a diversified global financial services firm, Morgan Stanley Wealth Management engages in a broad spectrum of activities including financial advisory services, investment management activities, sponsoring and managing private investment funds, engaging in broker-dealer transactions and principal securities, commodities and foreign exchange transactions, research publication, and other activities. In the ordinary course of its business, Morgan Stanley Wealth Management therefore engages in activities where Morgan Stanley Wealth Management’s interests may conflict with the interests of its clients, including the private investment funds it manages. Morgan Stanley Wealth Management can give no assurance that conflicts of interest will be resolved in favor of its clients or any such fund.
Alternative investments involve complex tax structures, tax inefficient investing, and delays in distributing important tax information. Individual funds have specific risks related to their investment programs that will vary from fund to fund. Clients should consult their own tax and legal advisors as Morgan Stanley Wealth Management does not provide tax or legal advice.
Morgan Stanley Wealth Management is a business of Morgan Stanley Smith Barney LLC.
© 2026 Morgan Stanley Smith Barney LLC. Member SIPC. Alternative investment securities discussed herein are not covered by the protections provided by the Securities Investor Protection Corporation, unless such securities are registered under the Securities Act of 1933, as amended, and are held in a Morgan Stanley Wealth Management Individual Retirement Account.
CRC 5919295 10/26
E8 • August 31, 2026 • 9 mins
Private credit has grown into a meaningful part of how companies finance themselves and how investors think about fixed income and the role private credit may play within a diversified portfolio. Brian Holzer sits down with Logan Nicholson, Senior Managing Director and member of the Direct Lending Investment Team at Blue Owl, to discuss the state of the direct lending market, factors that may influence borrower demand for private financing, and considerations for evaluating private credit within a diversified portfolio.
[COLD OPEN]
LOGAN NICHOLSON
Private credit is a term that gets used as a monolith to describe the strategy. It’s not really one strategy. It’s many strategies.
[CUT TO THE ALTS REPORT OPENING SEQUENCE]
00:26
BRIAN HOLZER
Welcome to The Alts Report, where we explore the value of alternative investments and the trends shaping today's markets. Today, I'm pleased to welcome Logan Nicholson, senior managing director and member of the Direct Lending investment team at Blue Owl.
LOWER THIRD:
Brian Holzer
Head of Alternative Investments Sales & Distribution
Morgan Stanley Wealth Management
00:38
Our focus is private credit, an area that has seen significant growth over the last several years and plays an important role in helping to finance our economy. From lending to corporations to financing hard assets such as real estate, we have seen a real structural shift in how borrowers access capital. At the same time, more investors are turning to private credit as a tool to help broaden diversification and provide greater income potential relative to traditional fixed income.
01:03
It's also an asset class that has been in the headlines over the past few months, given elevated redemptions from certain perpetual vehicles, which have been driven by several factors, including concerns about AI's potential impact on software companies, lower base rates, tighter spreads and declining portfolio yields. Today, we'll explore these developments alongside the broader role and outlook for private credit.
01:25
So, Logan, thanks for being with us. Maybe to start, private credit is a fairly broad term, it can include areas like corporate lending, asset-based lending, capital solutions. Help provide a definition in terms of what private credit is and the role that it plays in today's market.
ON-SCREEN QUESTION: What is private credit and what role does it play in today’s market?
01:41
LOGAN NICHOLSON
We're talking about investment grade, some sub-investment grade corporate credit that I would call direct lending and then asset-based strategies, distressed credit. Structured finance.
LOWER THIRDS:
Logan Nicholson
Senior Managing Director & Portfolio Manager
Blue Owl
01:52
And so first, I think you have to define what strategies you're discussing within private credit. We operate in the corporate direct lending market, which is lending directly to sub investment grade. So middle market companies predominantly in the US. Most of those companies are owned by private equity firms. Most of them are backed by institutions, not all of them.
02:10
But that's the market we operate in. And to put this into context, the sub investment grade corporate private credit market, the direct lending market is about a trillion and a half dollars. Put that in context relative to the corporate loan and bond market. So, our public market equivalent. That's about 3, 3.5 trillion. So, we're about half that size.
02:30
That's about half the size of the investment grade corporate market which is over 7 trillion. The investment grade bond market is about half the size of the US residential mortgage market. So, we're talking about a very small pocket of the overall corporate credit universe and overall credit universe within the United States.
And it's a growing one. It's taking share.
02:50
BRIAN HOLZER
So, we believe we've seen a real structural change in terms of how folks access capital. Let's focus on the borrower to start. Given that yields are generally higher in private financing like this versus what maybe they get in other sources of capital, why are borrowers turning to private credit?
ON-SCREEN QUESTION: Why are borrowers turning to private credit?
03:10
LOGAN NICHOLSON
People often ask me, you're getting paid a higher interest rate. So, isn't your company a worse company? That's a misperception in our market. It's the same companies. Many times, the same companies that I've financed over and over again in my career, first in public markets and now in private markets.
03:26
There are three important pillars of why they choose private credit. One, it's the partnership. And that may sound softer, but it's real. You know who your lenders are.
You have certainty of financing spread when you go in. If you have a problem later, you can call up that group of three to five to seven lenders.
Second, it cuts out the middleman. It cuts out the broker. There are all sorts of fees associated with arranging financing through a bank. For some companies and borrowers, that's the right way. But others look at it and say, well, those are fees I don't want to spend. And so it's not just the interest rate, the headline rate, it's the underwriting fees, it's the rating agency fees.
04:05
It's the management time for going on multiple road shows. It's being in the public domain, and that costs money. And so, the actual cost differential is much tighter than maybe the headline rate.
And then the last is confidentiality. Those companies don't want their information in the public hands. Many companies just prefer it being private. And again, it's with that relationship group. And customization. Because we're not solving for a structure that's a CLO or a mutual fund, we can customize with your group of partners.
You can keep your structure confidential if it matches your balance sheet. You can set up the financing to grow with you in the future.
04:37
BRIAN HOLZER
And going forward, there's a world where private and public financings coexist to help solve the needs of borrowers.
ON-SCREEN QUESTION: Can companies combine public and private financing?
LOGAN NICHOLSON
Absolutely. As companies grow, they might go back and forth from one to the other, when they're going through a period of transformation or when they're trying to grow the fastest, they might choose one market over the other.
04:55
Public markets are more volatile because they're trading based on both technicals and fundamentals. People could decide to finance in the private markets because the capital is longer duration, it has longer lock ups. And so, there's less volatility in trading because it's a direct buy and hold long duration fund structure. And so, based on costs, based on customization, borrowers can go back and forth and we see it all the time.
05:20
BRIAN HOLZER
So, let's move to portfolio construction. As you were out meeting with institutions, financial advisors, clients, where do you see private credit specifically fitting in asset allocation for clients?
ON-SCREEN QUESTION: How can private credit fit into an asset allocation plan?
05:32
LOGAN NICHOLSON
It's a good question. I think most clients have a fixed income allocation, and they have to think about two things. One, do I know what I'm getting into in my fixed income allocation? Am I getting the best return for the risk I'm already taking?
For many clients, you're already taking that risk in that sub investment grade corporate credit market and the private credit version—so direct lending—has outperformed the high yield market and the loan market as a whole by 300 to 400 basis points over a long period of time.
06:02
So are you getting the right return for taking the right risks? And the second part is are you willing to give up a little bit of liquidity. And so, investors need to think about the tradeoff you're getting. But you need to give up a little bit of liquidity because the fund structure allows us to commit to a buy and hold. It allows us to customize.
06:19
But for that we need the capital for a longer period of time. We need to have it in the right mousetrap. And so, you need to put it into a fund, realizing that it's not as liquid as a public fund. That's part of the way it's structured. It's part of the way we can get that potential outsized return.
06:32
BRIAN HOLZER
So last question. In my opening, I touched on a little bit about the growth that private credit has seen, and a number of reasons why, whether that’s bank retrenchment, regulations, but it has also been obviously in the headlines as of late. Can you provide an update on where do the private credit markets as you see it stand today, and then what do you expect going forward over the next few years?
ON-SCREEN QUESTION: What is the current state and outlook for the private credit market?
06:57
LOGAN NICHOLSON
Look, today, I think contrary to maybe the perception right now, the private credit market, specifically the direct lending market where we operate at Blue Owl, is a healthy one.
Default rates in the industry, we track them as non-accrual rates. You can look at any index across our market. It's at the low end of the range for the last three years, meaning defaults are at the low end of the range. Defaults in our market are a typical thing, but they're running lower right now than they were a year or two ago.
07:24
So it's a healthy credit market broadly speaking. And borrowers are still choosing private credit. Borrowers are choosing on almost a 3 to 1 ratio.
We have maybe about a third of the sub investment grade corporate credit market today, our estimation. Direct lending is about a trillion and a half dollars versus the public markets that have maybe about $3 trillion. So, we've got about a third of the TAM for our universe, and that's up 5 or 10 points over the last five or so years. We think we can continue to grow that share. The last thing I'd say is that TAM is growing and the size of the company that's remaining private, it's growing.
08:00
It's just tremendous today. The number of companies that are private versus public, it's about triple. You look at the most recent IPOs in the public markets. They're trillion-dollar companies. And so companies have the capital. They have the wherewithal to stay private for much longer. And there's quite a bit of burden that comes with the regulation of being public.
You’re seeing companies need more and more capital because they want to stay private for longer. That trend benefits the corporate lending markets, both the public and private corporate lending markets.
08:28
BRIAN HOLZER
You make a great point. You have less public companies today than you did 20, 25 years ago. Companies are staying private longer than they were historically. So, you do need the capital to help finance those companies if they're going to end up staying private longer.
Logan, that was great, thank you. We appreciate you all joining us for this edition of The Alts Report. To learn more about alternative investments and our platform at Morgan Stanley, please visit morganstanley.com/alts or reach out to your Morgan Stanley financial advisor or private wealth advisor. We look forward to seeing you next time.
END OF TRANSCRIPT
SOURCE INFORMATION
Direct lending has outperformed the high-yield and the loan market over a long period of time: Cliffwater Direct Lending Index, Morningstar LSTA Leveraged Loan Index, ICE BoFA HY Index. Inception date: September 15, 2015. Data as of March 31, 2025.
Borrowers choosing direct lending: PitchBook LCD, Private Credit Monitor, Quarterly LBO Volume: Direct Lending vs. Institutional Leveraged Loans. 1Q 2026.
Private credit market size: Federal Reserve, Financial Stability Report, Box 4.1: “Developments in Private Credit,” Figure A: “Private Credit Market Size and Share of Corporate Debt.” May 2026.
U.S. investment grade corporate bond market size: Federal Reserve, Financial Stability Report, Table 1.1: “Size of Selected Asset Markets.” May 2026.
U.S. residential mortgage market: Federal Reserve, Financial Accounts of the United States (Z.1), Table L.217: Total Mortgages, One-to-Four Family Residential Mortgages Outstanding. June 11, 2026 (data through Q1 2026).
Number of private companies versus public companies: Source: Capital IQ. U.S. public and private operating companies and subsidiaries with annual revenue greater than $100 million. Based on latest available fiscal year data as of June 10, 2026.
Less public companies today than 20-25 years ago: World Bank: Listed domestic companies, total - United States. Data through December 31, 2025.
Companies are staying private longer: Morningstar, “Unicorns and the growth of private markets | Morningstar Indexes,” February 19, 2026.
Morgan Stanley Smith Barney LLC ("Morgan Stanley Wealth Management") - IMPORTANT DISCLOSURES
Morgan Stanley Wealth Management acts as a placement agent in connection with the offering and sale of the securities of the fund to current and prospective clients of Morgan Stanley Wealth Management or its affiliates. Morgan Stanley Wealth Management will receive cash compensation for its activities as placement agent from the fund’s manager, as described in Morgan Stanley Wealth Management’s point of sale letter, if applicable. In addition, Morgan Stanley Wealth Management, its affiliates or employees, may have additional relationships with the fund’s manager, including as an investor in the fund or other investment vehicles managed by the fund’s manager or as a client of the fund’s manager. The payment of cash compensation to Morgan Stanley Wealth Management, and any additional relationships that Morgan Stanley Wealth Management or its affiliates may have with the fund’s manager or other investment vehicles managed by the fund’s manager, create material conflicts of interest for Morgan Stanley Wealth Management in its role as placement agent.
All expressions of opinion are subject to change without notice and are not intended to be a forecast of future events or results. Further, opinions expressed herein may differ from the opinions expressed by Morgan Stanley Wealth Management and/or other businesses/affiliates of Morgan Stanley Wealth Management.
Alternative investments often are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are appropriate only for eligible, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. They may be highly illiquid and can engage in leverage and other speculative practices that may increase the volatility and risk of loss. Alternative Investments typically have higher fees than traditional investments. Investors should carefully review and consider potential risks before investing.
The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be appropriate for all clients. Any product discussed herein may be purchased only after a client has carefully reviewed the offering memorandum and executed the subscription documents. Morgan Stanley Wealth Management has not considered the actual or desired investment objectives, goals, guidelines, or factual circumstances of any investor in any fund(s). Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance.
As a diversified global financial services firm, Morgan Stanley Wealth Management engages in a broad spectrum of activities including financial advisory services, investment management activities, sponsoring and managing private investment funds, engaging in broker-dealer transactions and principal securities, commodities and foreign exchange transactions, research publication, and other activities. In the ordinary course of its business, Morgan Stanley Wealth Management therefore engages in activities where Morgan Stanley Wealth Management’s interests may conflict with the interests of its clients, including the private investment funds it manages. Morgan Stanley Wealth Management can give no assurance that conflicts of interest will be resolved in favor of its clients or any such fund.
Alternative investments involve complex tax structures, tax inefficient investing, and delays in distributing important tax information. Individual funds have specific risks related to their investment programs that will vary from fund to fund. Clients should consult their own tax and legal advisors as Morgan Stanley Wealth Management does not provide tax or legal advice.
Morgan Stanley Wealth Management is a business of Morgan Stanley Smith Barney LLC.
© 2026 Morgan Stanley Smith Barney LLC. Member SIPC. Alternative investment securities discussed herein are not covered by the protections provided by the Securities Investor Protection Corporation, unless such securities are registered under the Securities Act of 1933, as amended, and are held in a Morgan Stanley Wealth Management Individual Retirement Account.
CRC 5783155 08/26
Morgan Stanley Wealth Management offers qualified investors a full suite of alternative investments across various asset classes. Reach out to your Morgan Stanley Financial Advisor or Private Wealth Advisor to learn how alternative investments may strengthen your portfolio and help meet your financial goals.
Disclosures
Morgan Stanley Smith Barney LLC (“Morgan Stanley Wealth Management”) - IMPORTANT DISCLOSURES LLC
Morgan Stanley Wealth Management acts as a placement agent in connection with the offering and sale of the securities of the Fund to current and prospective clients of Morgan Stanley Wealth Management or its affiliates. Morgan Stanley Wealth Management will receive cash compensation for its activities as placement agent from the Fund’s manager, as described in Morgan Stanley Wealth Management’s point of sale letter, if applicable. In addition, Morgan Stanley Wealth Management, its affiliates or employees, may have additional relationships with the Fund’s manager, including as an investor in the Fund or other investment vehicles managed by the Fund’s manager or as a client of the Fund’s manager. The payment of cash compensation to Morgan Stanley Wealth Management, and any additional relationships that Morgan Stanley Wealth Management or its affiliates may have with the Fund’s manager or other investment vehicles managed by the Fund’s manager, create material conflicts of interest for Morgan Stanley Wealth Management in its role as placement agent.
The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be appropriate for all clients. Any product discussed herein may be purchased only after a client has carefully reviewed the offering memorandum and executed the subscription documents. Morgan Stanley Wealth Management has not considered the actual or desired investment objectives, goals, guidelines, or factual circumstances of any investor in any fund(s). Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance.
Alternative investments often are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are appropriate only for eligible, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. They may be highly illiquid and can engage in leverage and other speculative practices that may increase the volatility and risk of loss. Alternative Investments typically have higher fees than traditional investments. Investors should carefully review and consider potential risks before investing. Certain of these risks may include but are not limited to:
• Loss of all or a substantial portion of the investment due to leveraging, short-selling, or other speculative practices;
• Lack of liquidity in that there may be no secondary market for a fund;
• Volatility of returns
• Restrictions on transferring interests in a fund;
• Potential lack of diversification and resulting higher risk due to concentration of trading authority when a single advisor is utilized;
• Absence of information regarding valuations and pricing;
• Complex tax structures and delays in tax reporting;
• Less regulation and higher fees than mutual funds;
• Risks associated with the operations, personnel, and processes of the manager; and
• Risks associated with cybersecurity.
As a diversified global financial services firm, Morgan Stanley Wealth Management engages in a broad spectrum of activities including financial advisory services, investment management activities, sponsoring and managing private investment funds, engaging in broker-dealer transactions and principal securities, commodities and foreign exchange transactions, research publication, and other activities. In the ordinary course of its business, Morgan Stanley Wealth Management therefore engages in activities where Morgan Stanley Wealth Management’s interests may conflict with the interests of its clients, including the private investment funds it manages. Morgan Stanley Wealth Management can give no assurance that conflicts of interest will be resolved in favor of its clients or any such fund.
As part of the Morgan Stanley Private Markets – Access program, Morgan Stanley will be limited solely to a role as an introducer and will not be serving as a placement agent or adviser. Eligible investors must enroll in the program in order to see any investment opportunities. Investments require independent evaluation, due diligence, review & analysis. Neither Morgan Stanley nor any of its affiliates is making any recommendation to purchase or take any action of any sort and is not providing any advice on investments. Investors are asked to work directly with the issuer/sponsor and with your own independent (non-Morgan Stanley) financial, legal, accounting, tax, and other professional advisors to evaluate the investment opportunity.
Investors are responsible for complying with the terms of any applicable exemption from securities law requirements and any potential Private Company issuer restrictions for any sale of Private Company shares, and you must obtain your own legal counsel to advise you in connection with such requirements and Private Company issuer restrictions. You should consult with your third-party advisors regarding the risks of transacting in Private Company shares, including the risk of transacting in a market with little or no price transparency or liquidity. Morgan Stanley provides no opinion or view on the valuation of any Private Company shares, or the sufficiency, fairness or competitiveness of any price obtained. Private Securities do not trade on any national securities exchange and, as such, any potential liquidity (i.e., the potential for any buying interest that might satisfy your sell interest) in such Private Company shares is very limited.
Investments of this nature include a high degree of risk, likely will be highly illiquid and can engage in leverage and other speculative practices that may increase the volatility and risk of loss. Investors could lose all or a substantial amount of their investment. Investments are appropriate only for eligible investors who are willing to put capital at risk for an indefinite period of time.
Past performance is no guarantee of future results. Actual results may vary. Diversification does not assure a profit or protect against loss in a declining market.
As a diversified global financial services firm, Morgan Stanley engages in a broad spectrum of activities including financial advisory services, investment management activities, sponsoring and managing private investment funds, engaging in broker-dealer transactions and principal securities, commodities and foreign exchange transactions, research publication, and other activities. In the ordinary course of its business, Morgan Stanley therefore engages in activities where Morgan Stanley interests may conflict with the interests of its clients, including the private investment funds it manages. Morgan Stanley can give no assurance that conflicts of interest will be resolved in favor of its clients or any such fund. All expressions of opinion are subject to change without notice and are not intended to be a forecast of future events or results. Further, opinions expressed herein may differ from the opinions expressed by Morgan Stanley Wealth Management and/or other businesses/affiliates of Morgan Stanley Wealth Management.
This is not a "research report" as defined by FINRA Rule 2241 or a "debt research report" as defined by FINRA Rule 2242 and was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC or Morgan Stanley & Co. LLC or its affiliates. Alternative investments involve complex tax structures, tax inefficient investing, and delays in distributing important tax information. Individual funds have specific risks related to their investment programs that will vary from fund to fund. Clients should consult their own tax and legal advisors as Morgan Stanley Wealth Management does not provide tax or legal advice.
Interests in alternative investment products are only made available pursuant to the terms of the applicable offering memorandum, are distributed by Morgan Stanley Wealth Management and certain of its affiliates, and (1) are not FDIC-insured, (2) are not deposits or other obligations of Morgan Stanley Wealth Management or any of its affiliates, (3) are not guaranteed by Morgan Stanley Wealth Management and its affiliates, and (4) involve investment risks, including possible loss of principal. Morgan Stanley Wealth Management is a registered broker-dealer, not a bank.
Morgan Stanley Wealth Management is a business of Morgan Stanley Smith Barney LLC.
Real estate investments are subject to special risks, including interest rate and property value fluctuations, as well as risks related to general and economic conditions.
Environmental, Social and Governance (“ESG”) investments in a portfolio may experience performance that is lower or higher than a portfolio not employing such practices. Portfolios with ESG restrictions and strategies as well as ESG investments may not be able to take advantage of the same opportunities or market trends as portfolios where ESG criteria is not applied. There are inconsistent ESG definitions and criteria within the industry, as well as multiple ESG ratings providers that provide ESG ratings of the same subject companies and/or securities that vary among the providers. Certain issuers of investments may have differing and inconsistent views concerning ESG criteria where the ESG claims made in offering documents or other literature may overstate ESG impact. ESG designations are as of the date of this material, and no assurance is provided that the underlying assets have maintained or will maintain and such designation or any stated ESG compliance. As a result, it is difficult to compare ESG investment products or to evaluate an ESG investment product in comparison to one that does not focus on ESG. Investors should also independently consider whether the ESG investment product meets their own ESG objectives or criteria.
There is no assurance that an ESG investing strategy or techniques employed will be successful. Past performance is not a guarantee or a dependable measure of future results.
© 2026 Morgan Stanley Smith Barney LLC. Member SIPC. Alternative investment securities discussed herein are not covered by the protections provided by the Securities Investor Protection Corporation, unless such securities are registered under the Securities Act of 1933, as amended, and are held in a Morgan Stanley Wealth Management Individual Retirement Account.
CRC# 5970950 (10/2026)
