The FINANCIAL -- Morgan Stanley Expansion Capital, the growth-focused private investment platform within Morgan Stanley Investment Management, today announced that it has closed on over $275 million of capital commitments for North Haven Expansion Credit LP and its related funds (collectively, “Expansion Credit” or the “Fund”), exceeding its fundraising target.
Expansion Credit intends to capitalize on Morgan Stanley Expansion Capital’s (“Expansion Capital”) long-standing history of private growth investing in late-stage, private companies across a broad range of industries, including technology, healthcare, consumer, ecommerce, digital media and business services.
“We are pleased that investors have placed their trust in us and recognize the potential of our Expansion Credit offering, given our strong sourcing advantage and focus on companies with meaningful enterprise value,” said David N. Miller, Head of Private Credit and Equity for Morgan Stanley Investment Management. “The team brings outsized resources to the growth credit market by combining Expansion Capital’s expertise and network with Morgan Stanley’s global franchise.”
The Fund’s investment strategy focuses on companies which are late-stage and have proven business models, momentum and strong management. The Fund leverages established channels of deal origination and utilizes market sector and investment insight from senior investment professionals within the Morgan Stanley Expansion Capital platform, according to Morgan Stanley.
“We believe that our investment strategy is differentiated when compared to traditional growth debt providers,” said Pete Chung, Head of the Morgan Stanley Expansion Capital Platform. “The Fund intends to extend Expansion Capital’s legacy of investment success and will seek to generate attractive risk-adjusted returns for its investors through a combination of current income and long-term capital appreciation.”
Bill Reiland, Chief Investment Officer of Expansion Credit, said, “We believe that our investment team brings a unique blend of growth debt investing, growth equity investing and Morgan Stanley experience to the Fund’s strategy, allowing the Fund to properly value growth businesses and appropriately structure investments to maximize returns while limiting downside risk.”