Exclusive: Morgan Stanley AIP collects $500m

The multi-manager arm of the New York-based investment bank has closed its latest real estate secondaries fund on just north of $500m.

Morgan Stanley Alternative Investment Partners (MS AIP), the multi-manager arm of the New York-based investment bank, has closed its latest real estate secondaries fund, AIP Phoenix Global Real Estate Secondaries Fund II, on just over $500 million.

The firm hit its $500 million target having collected the cash from global pension funds, sovereign wealth funds, insurance companies, and high net worth individuals. The fund, which was launched in 2013, will focus primarily on acquiring secondary interests in private equity real estate funds and making co-investments alongside fund managers.

“Our investment strategy is to align with and co-invest alongside what we believe to be best-in-class real estate fund managers around the world with a specialist expertise in their local markets,” David Boyle, chief investment officer and co-head of MS AIP Real Estate, previously told PERE.

Recent deals for the real estate business of MS AIP include a 50:50 co-investment in Japan alongside Asia-focused logistics fund manager The Redwood Group, marking MS AIP’s first foray into the Japanese real estate market. The deal followed another co-investment with Redwood which saw the pair acquire a 388,000-square-foot facility for Daimler Northeast Asia Parts Trading and Services in the southern Chinese city of Guangzhou, which had a total deal size between $50 million and $100 million.

MS AIP also made an exit towards the end of last year when The Teacher Retirement System of Texas paid $27 million for a stake in a partnership between São Paulo-based firm GuardeAqui and MS AIP. The MSAIP/GuardeAqui venture will reportedly invest R$800 million (€265 million; $330 million) to R$1 billion in self-storage properties through 2018 and plans to launch between 45 and 50 projects over the next five years.

MS AIP has over $33 billion in assets under management and advisement across asset classes, employing more than 200 professionals. Its investment offices are located in Philadelphia, New York, London and Hong Kong.