Morgan Stanley AIP raises $425m co-investment fund

The New York-based firm surpasses target on its first co-investment vehicle.

Morgan Stanley Alternative Investment Partners (MS AIP) held a final close on its debut standalone co-investment vehicle at $425 million.

Private Equity Co-investment Fund I (PECO I), which was oversubscribed and surpassed a $350 million target, will build upon MS AIP’s current $3.5 billion co-investment portfolio comprising 180 individual commitments.

Through this vehicle, MS AIP plans to invest alongside fund sponsors in buyout and growth transactions in North America and Western Europe. The New York-based firm said in its press release that the fund structure would enable the firm to target less efficient market segments across multiple sectors.

PECO I’s limited partners include a variety of private and public pensions, corporations, foundations and high net worth individuals.