Morgan Stanley raises $1.5 billion in new Asia-dedicated private equity fund

Mumbai: Global financial services group Morgan Stanley''s Asia private equity group, Morgan Stanley Private Equity Asia (MSPE Asia), has raised $1.5 billion for its third Asia fund targeting private equity investments - Morgan Stanley Private Equity Asia III, L.P.

MSPE Asia, which is part of the Firm''s global private equity group within the Merchant Banking Division, will manage the Fund.

"The new fund will allow clients and investors, as well as the Firm, to capitalise on growth opportunities in Asia through direct investments," said Hans Schuettler, chief executive officer, Morgan Stanley Asia. "In addition, it reflects our commitment to principal investing in the region, not only in private equity, but also in real estate and other opportunities across the capital structure," he added.

The investor group comprises of leading global institutions and high net-worth individuals, as well as Morgan Stanley and its employees.

The Asia Fund plans to invest in leading businesses located across the region with strong value propositions and has already begun to review investment opportunities. It will have a traditional five-year investment period followed by a five-year harvest period.

"Morgan Stanley has been an active and successful private equity investor in the region since 1993," said Chin Chou, chief executive of MSPE Asia. "We will continue our valueoriented investment strategy, focused not only on opportunities in China, South Korea, Singapore and Taiwan, where we have established track records, but also on other important markets such as Japan, India and Australia," he added.

MSPE Asia is one of the leading private equity investors in Asia Pacific. The group has made a number of investments in Asia, including the most recent ones in Belle International, Dongxiang Sports and Shanshui Cement in China, Rotem and Ssangyong Corporation in South Korea, CTCI Corporation in Taiwan, and Asia Capital Reinsurance in Singapore.