Key Takeaways
- • Morgan Stanley Investment Management (MSIM) announced the final close of North Haven Private Equity Co-Investment Opportunities Fund III LP (PECO III) at its hard cap, with approximately $2.3 billion in total commitments.
- • PECO III is managed by Morgan Stanley Private Equity Solutions and provides private equity exposure through co-investments alongside buyout managers focused primarily on the lower middle market.
- • The fund is the successor to PECO I and PECO II, extending a 25-year co-investment track record that includes nearly $6 billion of commitments since 1999.
- • Morgan Stanley Private Equity Solutions has committed over $27 billion to more than 1,200 private markets investments since inception.
Summary
Morgan Stanley Investment Management (MSIM) announced the final close of North Haven Private Equity Co-Investment Opportunities Fund III LP (PECO III), which closed at its hard cap with approximately $2.3 billion in total commitments, according to the firm's announcement. The fund offers private equity exposure through co-investments alongside best-in-class buyout managers operating primarily in the lower middle market.
PECO III is managed by Morgan Stanley Private Equity Solutions, the multi-manager private equity platform within MSIM's $240 billion alternatives platform. The fund succeeds two dedicated co-investment vehicles, PECO I and PECO II, and continues the group's 25-year record of executing co-investments, which includes nearly $6 billion of commitments since inception at Morgan Stanley in 1999.
Neha Champaneria Markle, Head of Morgan Stanley Private Equity Solutions, said the program's success reflects "the quality and discipline of our stable of lower middle market GP relationships," and said the team will continue to support GPs as a limited partner, co-underwriting partner, warehouse provider, or financing source. David N. Miller, Global Head of Morgan Stanley Private Credit & Equity, said the platform's "distinct investment culture" and "expansive network of primary fund relationships" are designed to deliver attractive performance for investors.
Morgan Stanley Private Equity Solutions, founded in 1999, is a leading limited partner in private markets. Its platform spans globally diversified fund of funds programs, custom mandates, and specialized programs covering external private equity funds, co-investments, secondaries, and venture capital. MSIM, with more than 1,400 investment professionals, reported $1.6 trillion in assets under management or supervision as of March 31, 2025.
PECO III is managed by Morgan Stanley Private Equity Solutions, the multi-manager private equity platform within MSIM's $240 billion alternatives platform. The fund succeeds two dedicated co-investment vehicles, PECO I and PECO II, and continues the group's 25-year record of executing co-investments, which includes nearly $6 billion of commitments since inception at Morgan Stanley in 1999.
Neha Champaneria Markle, Head of Morgan Stanley Private Equity Solutions, said the program's success reflects "the quality and discipline of our stable of lower middle market GP relationships," and said the team will continue to support GPs as a limited partner, co-underwriting partner, warehouse provider, or financing source. David N. Miller, Global Head of Morgan Stanley Private Credit & Equity, said the platform's "distinct investment culture" and "expansive network of primary fund relationships" are designed to deliver attractive performance for investors.
Morgan Stanley Private Equity Solutions, founded in 1999, is a leading limited partner in private markets. Its platform spans globally diversified fund of funds programs, custom mandates, and specialized programs covering external private equity funds, co-investments, secondaries, and venture capital. MSIM, with more than 1,400 investment professionals, reported $1.6 trillion in assets under management or supervision as of March 31, 2025.
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