Morgan Stanley Investment Management Raises $1.6 billion for North Haven Credit Partners III

Rhea-AI Summary

Morgan Stanley Investment Management has successfully raised $1.6 billion for its North Haven Credit Partners III Fund, surpassing its target by 29%. This fund will invest primarily in junior capital for private North American businesses, including 2nd lien debt and mezzanine debt. The Private Credit team manages over $10 billion in assets. Key advantages cited include access to Morgan Stanley's network for deal sourcing and a proven track record across market cycles. More than 20% of the fund's capital has already been deployed.

Positive

• Raised $1.6 billion for NHCP III, exceeding target by 29%.
• Fund focuses on junior capital investments in private businesses.
• Managed over $10 billion in investable assets.
• Access to Morgan Stanley's network enhances competitive advantage.
• More than 20% of fund's capital deployed, reflecting strong activity.

Negative

• None.

Morgan Stanley Investment Management today announced that it has raised $1.6 billion for North Haven Credit Partners III (“NHCP III” or the “Fund”), exceeding its original fundraising target by 29%. Investors in NHCP III, the successor fund to North Haven Credit Partners II, include public and private pension funds, sovereign wealth funds, insurance companies and individual investors. The Fund, managed by the Morgan Stanley Private Credit team, will focus primarily on junior capital investments in private North American businesses including 2^nd lien debt, mezzanine debt, preferred equity and special situations.

“We are pleased with the strong support for NHCP III from new and returning investors which expands our substantial Private Credit business to over $10 billion in investable assets including anticipated leverage,” said David N. Miller, Head of Global Private Credit and Equity for Morgan Stanley Investment Management. “This latest offering builds on our long and successful tenure in the asset class as a flexible capital-solutions provider to the middle market.”

“We believe the Fund holds certain significant competitive advantages by having access to the Morgan Stanley network for deal sourcing, investment research, and due diligence,” added Henry (“Hank”) D’Alessandro, Co-Portfolio Manager of NHCP III. “Coupled with a track record of investing across market cycles and optionality to hold publicly traded debt instruments during periods of dislocation, we believe NHCP III is uniquely positioned to deliver results to clients.”

“Our ability to structure and invest across the capital structure is a key differentiator within the private credit ecosystem,” said Ashwin Krishnan, Co-Portfolio Manager of NHCP III. “To date, we have already deployed more than 20% of the Fund’s capital in investments that vary by size, sector and structure, reflecting our flexible approach to credit investing.”

About Morgan Stanley Private Credit
Morgan Stanley Private Credit, part of Morgan Stanley Investment Management, is a private credit platform focused on direct lending and opportunistic private credit investment in North America and Western Europe. The Morgan Stanley Private Credit team invests across the capital structure, including senior secured term loans, unitranche loans, junior debt, structured equity and common equity co-investments. For further information, please visit the website: https://www.morganstanley.com/privatecredit.

About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,100 investment professionals around the world and $1.5 trillion in assets under management or supervision as of June 30, 2021. 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 investment banking, securities, wealth management and investment management services. With offices in more than 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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