At $2.5 Billion, Morgan Stanley Investment Management Raises One of the Largest Funds Focused on Single Asset GP-Led Continuation Vehicles

Rhea-AI Summary

Morgan Stanley Investment Management (MSIM) has successfully closed its Ashbridge Transformational Secondaries Fund II (Ashbridge II) with $2.5 billion in total capital commitments, nearly four times the amount raised by its predecessor fund. Ashbridge II focuses on single asset GP-led continuation vehicles and is among the largest funds in this category. With over $200 billion in alternative investments, this fund aims to support middle market private equity funds by providing additional capital and time for value creation strategies. MSIM has a strong presence in private credit and equity, managing over $40 billion in assets.

Positive

• Ashbridge II raised $2.5 billion, nearly four times that of Ashbridge I.
• It targets high-performing assets in middle market private equity.
• MSIM has committed $3.6 billion in GP-led single asset transactions since 2006.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- Morgan Stanley Investment Management (MSIM) announced today that it has held the final close of Ashbridge Transformational Secondaries Fund II (Ashbridge II) at $2.5 billion of total capital commitments. The amount represents nearly four times of that raised in the predecessor fund, Ashbridge Transformational Secondaries Fund I (Ashbridge I), which closed in 2018 at $675 million. Ashbridge II is one of the largest funds raised to date that is focused exclusively on single asset GP-led continuation vehicles. Investors include a sophisticated group of public and private pension funds, sovereign wealth funds, non-profits, fund of funds, family offices and high net worth individuals from around the world.

Part of MSIM’s $200 billion alternative investments business, Ashbridge II seeks to invest in the highest performing assets in middle market private equity funds, providing general partners with additional time and capital to execute on their value creation strategy, and giving limited partners the option to take liquidity or maintain their exposure and capture potential upside.

“The secondaries market has more than tripled in size since 2011, with GP-led secondaries representing approximately half of the market as sponsors seek solutions for longer hold periods, duration mismatch between investors, and additional capital to effectively implement value creation strategies,” said Nash Waterman, Managing Director and Head of Morgan Stanley Private Equity Secondaries. “With Ashbridge II, we are pleased to provide well-performing middle market private equity sponsors a tailored solution for their highest conviction assets that seeks to enhance alignment and optimize outcomes for all stakeholders.”

Commenting on Ashbridge II, David N. Miller, Managing Director and Head of Morgan Stanley Private Credit & Equity, said: “With more than $40 billion of assets under management across private credit and equity strategies, we provide liquidity to the alpha rich middle-market segment. Ashbridge II is emblematic of the breadth of solutions we provide to enable investors access to private markets in accordance with their risk, return, duration and liquidity needs. We have committed $3.6 billion in GP-led single assets secondary transactions since 2006 and we are pleased that our investors have trusted us to deploy their capital through this strategy.”

About Morgan Stanley Investment Management

Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,200 investment professionals around the world and $1.3 trillion in assets under management or supervision as of December 31, 2022. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 41 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions, and individuals. For more information about Morgan Stanley, please visit www.morganstanley.com.

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Source: Morgan Stanley Investment Management