Morgan Stanley raises $1.5bn for infra fund in six months


gas-pipes-370311-mMorgan Stanley’s second infrastructure fund has raised more than $1.5bn from nine investors since it registered the vehicle in January this year.

The figure has been achieved through two parallel vehicles, with Morgan Stanley Infrastructure Partners II raising more than $881m via commitments from seven investors.

The US investment bank paid $3m of sales commission to a MS affiliate, a cost which the bank makes clear is not borne by the fund’s investors, according to its regulatory filing with the US Securities and Exchange Commission.

Another document shows the rest of the capital comes from the parallel fund Morgan Stanley Infrastructure Partners II-A, which has attracted $636m from two LPs.

The capital raised so far is less than half that of the investment bank’s first infrastructure vehicle, which closed on $4bn in May 2008. Morgan Stanley has not revealed its target for the second fund.

Investments in the portfolio include gas transmission and storage facility provider Southern Star, electricity, steam and chilled water company MATEP, Chicago Parking Meters and Affinity Water.

In 2012 Morgan Stanley increased its ownership stake to 100 per cent of South Star Central, parent company of Southern Star Central Gas Pipeline.

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