The private equity arm of Morgan Stanley has announced the $425m final close of its Private Equity Co-Investment Fund I (Peco I).
Morgan Stanley Alternative Investment Partners Private Markets (AIP Private Markets) had a $350m target for the fund.
Since it was launched, AIP Private Markets has invested $3.5bn in around 180 co-investment opportunities, through both funds and separately managed accounts.
Peco I will invest alongside private equity sponsors in growth and buyout transactions in North America and Europe. The GP said it will target less efficient market segments with sponsors that can apply specialised skills to unlock value.
Peco I's investors include institutions such as private and public pensions, corporations, foundations and family offices, as well as high-net-worth individuals, from a broad range of geographies.
Fresh capital will be used to launch the service in the US and open an office in New York
Current management team will stay with the business as it moves to new ownership
Baird Capital and VR EquityPartner both made an exit in the sale after a 12-year holding period
Deal closes a four-year holding period under OpenGate, which acquired the firm in 2014