Morgan Stanley Expansion Capital Raises $1.2bn to Fuel Late-Stage Growth

Morgan Stanley Investment Management (“MSIM”) announced today that it has closed on approximately $1.2bn of total equity capital commitments for North Haven Expansion Equity IX and North Haven Expansion Credit II to fund later-stage growth equity and credit investments in the technology, healthcare, consumer, digital media and other high-growth sectors.

The funds, managed by Morgan Stanley Expansion Capital (“Expansion Capital”), exceeded the target total raise of $850m by over 40%.

Pete Chung, Head of Expansion Capital commented: “As a global brand targeting later-stage, private companies where the same investment team has the flexibility to offer either equity or credit solutions, we believe these two new funds will allow Expansion Capital to continue our long history of providing bespoke financing solutions just as the market is seeing a pullback from both growth equity investors and venture lenders. Our consistent emphasis on disciplined, efficient portfolio company financial performance remains core to our strategy and is a fundamental component of our success as a platform.”

Part of MSIM’s $230bn alternative investments business, Expansion Capital predominantly invests in later-stage private companies with established products and services that are seeking capital to scale revenue and expand business operations. For over three decades, Expansion Capital has successfully pursued growth investment opportunities and has completed investments in over 200 companies, leveraging the global brand and network of Morgan Stanley.

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“We are pleased to have the continued support of our investors for both of these strategies,” said David N. Miller, Head of Morgan Stanley Private Credit & Equity. “The Expansion Capital team brings a deep growth investing and industry expertise, supported by Morgan Stanley’s global resources and brand.”

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.

Source: Yahoo! Finance

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