Morgan Stanley IM Secures $2.3B for Third PE Co-Investment Fund

Morgan Stanley Investment Management (MSIM) has closed its North Haven Private Equity Co-Investment Opportunities Fund III (PECO III), securing approximately $2.3 billion in commitments.

PECO III reached its hard cap, continuing MSIM’s co-investment strategy focused on lower middle-market opportunities since 2006. Its predecessor, PECO II, raised $1.25 billion in October 2022, surpassing its $750 million goal.

Managed by Morgan Stanley Private Equity Solutions, part of MSIM’s $240 billion alternatives platform, the fund leverages a 25-year co-investment track record, with nearly $6 billion in commitments since 1999.

Neha Champaneria Markle, head of Morgan Stanley Private Equity Solutions, emphasized the firm’s strategic edge: “We have a long history of serving as a partner of choice to sought-after buyout funds, and the success of the PECO program is a testament to the quality and discipline of our stable of lower middle market GP relationships.”

Since its inception in 1999 as AIP Private Markets, Morgan Stanley Private Equity Solutions has committed over $27 billion across more than 1,200 private markets investments.