Key Takeaways
- • Morgan Stanley Private Markets Solutions announced the final close of Private Equity Co-Investment Fund II (PECO II) with $1.25 billion in total commitments, exceeding its $750 million fundraising target.
- • PECO II targets co-investments in small- and mid-cap buyout and growth companies across North America and Europe.
- • The fund is the successor to PECO I and extends a co-investment track record of nearly $4 billion in commitments since the team's 1999 inception at Morgan Stanley.
- • Neha Champaneria Markle, Head of Private Markets Solutions, and portfolio manager Michael Carroll attributed the raise to the team's platform, disciplined underwriting, and third-party GP relationships.
Summary
Morgan Stanley Private Markets Solutions, the multi-manager private markets platform within Morgan Stanley Investment Management, has announced the final close of Private Equity Co-Investment Fund II (PECO II). According to the firm, the fund was oversubscribed, closing on $1.25 billion in total commitments against a fundraising target of $750 million.
PECO II provides private equity exposure through co-investments alongside third-party financial sponsors in small- and mid-cap buyout and growth companies across North America and Europe. The fund continues the strategy of its predecessor, PECO I, and forms part of a co-investment program that the firm says has committed nearly $4 billion since the team's inception at Morgan Stanley in 1999.
Neha Champaneria Markle, Head of Private Markets Solutions, said the fundraise reflected clients' trust in the team and reinforced its commitment to strong performance for limited partners. Portfolio manager Michael Carroll attributed the result to the market's recognition of the team's platform, disciplined underwriting, and collaborative relationships with third-party general partners.
The firm says the team has tracked more than 3,500 general partners since inception and has built a reputation for sourcing and efficient execution, which it credits with enabling selectivity in its co-investment program. As of September 30, 2022, Morgan Stanley Private Markets Solutions (formerly AIP Private Markets) had committed over $25 billion to more than 1,100 private markets investments across fund-of-funds, custom mandates, and specialized programs spanning co-investments, secondaries, venture capital, and impact. Morgan Stanley Investment Management reported $1.3 trillion in assets under management or supervision as of the same date.
PECO II provides private equity exposure through co-investments alongside third-party financial sponsors in small- and mid-cap buyout and growth companies across North America and Europe. The fund continues the strategy of its predecessor, PECO I, and forms part of a co-investment program that the firm says has committed nearly $4 billion since the team's inception at Morgan Stanley in 1999.
Neha Champaneria Markle, Head of Private Markets Solutions, said the fundraise reflected clients' trust in the team and reinforced its commitment to strong performance for limited partners. Portfolio manager Michael Carroll attributed the result to the market's recognition of the team's platform, disciplined underwriting, and collaborative relationships with third-party general partners.
The firm says the team has tracked more than 3,500 general partners since inception and has built a reputation for sourcing and efficient execution, which it credits with enabling selectivity in its co-investment program. As of September 30, 2022, Morgan Stanley Private Markets Solutions (formerly AIP Private Markets) had committed over $25 billion to more than 1,100 private markets investments across fund-of-funds, custom mandates, and specialized programs spanning co-investments, secondaries, venture capital, and impact. Morgan Stanley Investment Management reported $1.3 trillion in assets under management or supervision as of the same date.
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