Morgan Stanley Next Level Fund Raises $50 Million to Invest in Early-Stage Technology Companies

Rhea-AI Summary

Morgan Stanley Investment Management (MSIM) announced the final close of Morgan Stanley Next Level Fund, L.P. (Next Level) at its target size of $50 million of total capital commitments. The strategy includes corporate partners Hearst, Microsoft, and Walmart, as well as Altria, Ten Figures Ventures, and Phalanx Impact Partners. Next Level, part of MSIM’s $200 billion alternative business, invests in early-stage technology and technology-enabled companies with underrepresented members as part of the founding team, targeting sectors such as technology, consumer/retail, financial technology, healthcare, consumer products, and media and entertainment. The Fund has deployed a quarter of the capital across nine companies, many of which were founded by underrepresented groups and serve them as well.

Positive

• Final close of Next Level Fund at target size of $50 million
• Inaugural corporate partners include Hearst, Microsoft, and Walmart
• Invests in early-stage technology and technology-enabled companies with underrepresented members as part of the founding team
• Deployed a quarter of the capital across nine companies, many founded by and serving underrepresented groups

Negative

• None.

- Created in partnership with Hearst, Microsoft and Walmart

- Builds on expertise from the ground-breaking Morgan Stanley Inclusive Ventures Lab and HearstLab sourcing disruptive technology and technology-enabled start-ups

NEW YORK--(BUSINESS WIRE)-- Morgan Stanley Investment Management (MSIM) announced the final close of Morgan Stanley Next Level Fund, L.P. (“Next Level” or the “Fund”) at its target size $50 million of total capital commitments. Investors in the strategy include the inaugural corporate partners Hearst, Microsoft and Walmart as well as Altria, Ten Figures Ventures and Phalanx Impact Partners.

Next Level, part of MSIM’s $200 billion alternative business, builds upon the expertise of the Morgan Stanley Inclusive Ventures Lab and HearstLab to invest in primarily early-stage technology and technology-enabled companies with underrepresented members as part of the founding team. Target sectors include technology, consumer/retail, financial technology, healthcare, consumer products and media and entertainment. In addition to capital, each portfolio company may benefit from access to the global resources and capabilities of the corporate partners invested in the Fund.

At close, the Fund had deployed a quarter of the capital across nine companies. Many of these companies were not only founded by underrepresented groups but serve them as well. This includes funding for HourWork, a SaaS recruiting and retention platform founded by Rahkeem Morris and Rob Snyder to transform hourly work and the gig economy by matching employer demand for labor to workers who have certified skillsets in specific areas and are available for work. Additionally, the Fund participated in Series A funding for Bodily, which was founded by Tovah Haim to provide information and products to support women from pregnancy to postpartum and those experiencing pregnancy loss. A full list can be found here.

Commenting on the fundraise, Alice Vilma, Co-Portfolio Manager, Morgan Stanley Next Level Fund said: “There is an immense opportunity to provide overlooked entrepreneurs with much-needed capital and resources to help them succeed. With the support of our corporate partners, we are committed to driving a more equitable funding landscape for promising startups.”

“We are pleased to increase access to capital for underrepresented founders in our target sectors, and we are proud to partner with like-minded companies that share our commitment to closing the early-stage funding gap,” said David N. Miller, Managing Director and Head of Morgan Stanley Private Credit & Equity. “In addition to providing capital, our differentiated investment approach alongside our fund partners’ strategic expertise seeks to improve financial and operational outcomes for our portfolio companies.”

Debevoise & Plimpton served as legal counsel to Next Level in connection with the fundraise.

About Morgan Stanley Investment Management

Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,300 investment professionals around the world and $1.4 trillion in assets under management or supervision as of September 30, 2023. 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 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231120968332/en/

Media Relations: Alyson Barnes, +1 646 536 1733

Source: Morgan Stanley Investment Management

FAQ

What is the target size of Morgan Stanley Next Level Fund, L.P.?

The target size of the fund is $50 million of total capital commitments.

Who are the corporate partners of the Next Level Fund?

The inaugural corporate partners include Hearst, Microsoft, and Walmart, as well as Altria, Ten Figures Ventures, and Phalanx Impact Partners.

What sectors does Next Level Fund target for investment?

The fund targets sectors such as technology, consumer/retail, financial technology, healthcare, consumer products, and media and entertainment.

How much of the capital has the Fund deployed and across how many companies?

The Fund has deployed a quarter of the capital across nine companies.

What type of companies does the Fund invest in?

The Fund invests in early-stage technology and technology-enabled companies with underrepresented members as part of the founding team, many of which were founded by and serve underrepresented groups.