Morgan Stanley Investment Management (MSIM) says Morgan Stanley Alternative Investment Partners (AIP) has raised $370 million in commitments for Morgan Stanley AIP Phoenix Global Real Estate Secondaries 2009 LP (Phoenix), a fund dedicated to acquiring secondary interests in opportunistic and value-added private equity real estate funds. The capital raised exceeded AIP's initial $250 million target.
The objective of Phoenix is to target off-market secondary opportunities in private-equity real estate funds that have a sustainable strategy for generating returns across real estate cycles, MISM says.
"For the first time ever, investors in private equity real estate funds are selling significant interests in the secondary market, and as a result, we are finding tremendous opportunities to acquire high-quality assets at attractive valuations," says Joseph D. Stecher, head and chief investment officer of AIP Real Estate Fund of Funds. "We are focusing on best-in-class small to midsize fund managers globally as we seek to capitalize on several distinct advantages of investing in the secondary market, including the ability to avoid start-up costs and fees, accelerate investment programs and shorten time for realization, and effectively value underlying asset portfolios."
AIP is the fund of funds division of Morgan Stanley Investment Management. AIP manages portfolios of hedge funds, private equity funds and real estate funds, and has offices in West Conshohocken, Pa.; New York; San Francisco; Atlanta; London; and Hong Kong.
SOURCE: Morgan Stanley