Morgan Stanley Alternative Investment Partners has closed its Morgan Stanley Global Distressed Opportunities Fund LP with $500 million in commitments, Investment News reports.
The private equity fund of fundswhich is the company’s first to focus on the distressed segment of private equityseeks to offer investors a diversified portfolio through global investments in primary funds and co-investments in the distressed segment of private equity, the company said in an internal memo.
The fun focuses on turnarounds, debt-for-control and active trading, will emphasise less-efficient market segments and target managers in the U.S., Western Europe and emerging private-equity markets in Asia and beyond.
In addition to investing in private equity funds, the team expects that the fund will invest up to 20 percent of its committed capital in direct co-investments made alongside financial sponsors.