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 DâAlessandro, head of Morgan Stanley Credit Partners, said: âThe 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.
âWe already have a robust investment pipeline in place, and we believe the fund is well-positioned to continue to benefit from these dynamics.â
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 Flemingâs plan to manage the division more effectively.
By Jim Ottewill