Morgan Stanley Capital Partners Raises $3.2 Billion for Fund VIII, Surpassing Target

Morgan Stanley Capital Partners closed its North Haven Capital Partners VIII fund at $3.2 billion, surpassing its target of $2.5 billion. The fund attracted strong investor interest, a 60% increase from its predecessor. About 17% of the committed capital has been deployed across three investments. The successful fundraise is a testament to investor confidence in Morgan Stanley's strategic model, which combines global reach with in-house expertise for value creation and growth.

Morgan Stanley Capital Partners (MSCP), the middle market private equity buyout team within Morgan Stanley Investment Management, has successfully closed its North Haven Capital Partners VIII (NHCP VIII or Fund VIII) with total capital commitments of approximately $3.2 billion. This represents a significant milestone, as the fund exceeded its target of $2.5 billion and hit its $3.0 billion third-party hard cap in less than 12 months after its first close in the third quarter of 2024 [1].

NHCP VIII received strong support from both existing and new investors, raising capital from leading institutional investors, high-net-worth family offices, and individual clients of Morgan Stanley Wealth Management across North and South America, Europe, and Asia. The fund represents a 60% increase in total commitments from North Haven Capital Partners VII, which closed at approximately $2.0 billion in 2021 [2].

Aaron Sack, Head of Morgan Stanley Capital Partners, expressed gratitude for the support of existing and new investors. He noted the potential for favorable valuations in the current market and the U.S. middle market's role as a dynamic engine of economic growth and entrepreneur-driven innovation. Fund VIII will continue MSCP’s decades-long strategy of partnering with founders and management teams to drive growth and operational value creation in the U.S. middle market, leveraging the resources of a global financial institution [1].

To date, Fund VIII has deployed approximately 17% of committed capital across three investments: American Restoration, a residential and commercial property mitigation and restoration services company; FoodScience, a vertically integrated provider of pet and human nutritional supplements; and Thermogenics, a provider of industrial and commercial boiler service and maintenance across North America [1].

David N. Miller, Global Head of Private Credit and Equity, underscored investor confidence in Morgan Stanley Capital Partners’ differentiated model, which combines the strength and global reach of Morgan Stanley with the deep capabilities of its in-house operating team. He highlighted the team's proven track record of delivering strong returns through disciplined execution and transformational partnerships [1].

References:
[1] https://finance.yahoo.com/news/morgan-stanley-capital-partners-closes-130000028.html
[2] https://www.stocktitan.net/news/MS/morgan-stanley-capital-partners-closes-fund-viii-at-3-2-8w7o3cebp3zq.html