Tokyo: U.S. investment bank Morgan Stanley said that its Asia private equity group has raised about $1.5 billion to invest in the region’s companies.
Morgan Stanley Private Equity Asia (MSPE Asia), a 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 capitalize on growth opportunities in Asia through direct investments,” Hans Schuettler, chief executive of Morgan Stanley Asia, said in a statement.
Investors in the fund include global institutions and high-net-worth individuals, as well as Morgan Stanley and its employees.
The institutions are mostly U.S. endowments and foundations but also include a number of sovereign wealth funds, according to a Morgan Stanley spokesman.
The fund, called Morgan Stanley Private Equity Asia III L.P., will invest over a five-year period and then harvest any profits in the following five years.
“We will continue our value-oriented 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,” said said Chin Chou, chief executive of MSPE Asia.