Morgan Stanley mezzanine fund raises nearly $1bn

14 January 2011

Morgan Stanley’s first corporate mezzanine fund has succeeded in raising almost $1 billion in capital commitments.

According to the investment bank, Morgan Stanley Credit Partners (MSCP) is aimed at investing in fixed-income securities issued by middle market firms.

The shares are related to debt refinancing, acquisitions and recapitalizations and leveraged buy outs across a wide range of sectors focussing on North America and Western Europe.

Hank D’Alessandro, head of Morgan Stanley Credit Partners, said: “The market for mezzanine-debt investing is benefiting from favorable secular trends resulting from an underlying imbalance between the demand for and the supply of capital, particularly for middle market companies.

“We already have a robust investment pipeline in place, and we believe the fund is well-positioned to continue to benefit from these dynamics.”

The MSCP fund has so far invested over $160 million across five different portfolio countries.

It is looking to target investments between $20 million and $50 million in size while the Financial Times reported it is to be part of new investment management chief Greg Fleming’s plan to manage the division more effectively.

By Jim Ottewill

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development