Morgan Stanley Raises $2 Billion for a Private Equity Fund

Morgan Stanley has raised $2 billion for its latest private equity fund, North Haven Capital Partners VII, from investors including wealth management clients and institutions.

“Our multiyear industry evaluations and deep sector focus have resulted in an industry expertise, proprietary deal flow, and operational value-add that we believe is truly unrivaled in the middle market,” Morgan Stanley Capital Partners head Aaron Sack said in an emailed statement.

Morgan Stanley Capital Partners invests an average of $170 million in equity and targets US opportunities such as founder recapitalizations and platform builds in the industrial, business services, consumer, education, and health sectors. Its most recent vehicle has invested roughly 42 percent of committed capital, with the purchase of a controlling stake in SpendMend, a provider of cost-cycle management and other services to healthcare providers.

“We look forward to collaborating to advance SpendMend's market leadership in profit recovery and continue expanding the company through both organic growth and strategic add-on acquisitions,” said Steve Rodgers, managing director and head of healthcare at Morgan Stanley Capital Partners, in an emailed statement.

The most recent North Haven fund also invested in Alliance Technical Group, Sila Heating & Air Conditioning, Nivel Parts & Manufacturing, and Magma HDI General Insurance. Investment Management Corp. of Ontario is one of its investors.