Morgan Stanley AIP raises $1bn for Private Markets Fund VI

The fund of funds will target primary funds, secondaries and co-investments.

Morgan Stanley Alternative Investment Partners (AIP) has closed its latest fund of funds, Private Markets Fund VI, with more than $1 billion in commitments, exceeding its initial target of $750 million, according to a statement by the firm.

The new fund makes investments in primary funds, secondaries and co-investments in strategies such as buyouts, venture capital, growth capital and special situations.

“We are pleased with the success of this fund raise, particularly because we attracted several new limited partners to our programme,” said John Wolak, head of Morgan Stanley’s AIP Private Markets, in the statement.

The predecessor fund, Private Markets Fund V, closed in 2011 with $720 million, according to data from PEI Media’s Research and Analytics. Private Markets Fund IV closed in 2009 with $1.14 billion. Limited partners in those two funds included the Iceland State Employees’ and Nurses’ Pension Fund.

Morgan Stanley Alternative Investment Partners was established in 2000. It also has a dedicated secondaries fund, AIP Global Secondary Opportunities II, which surpassed its $600 million target and raised $770 million in 2013. Fund II focuses on off-market secondary opportunities and emphasises small- and mid- cap buyouts and special situations funds. AIP’s secondaries programme is led by Jonathan Costello.

As of 30 June, AIP managed total assets of $38.4 billion, including $10.7 billion in assets in private equity primary and secondary funds.