Morgan hires Apollo, Carlyle alumni for private equity team

As rival Citi enhances its alternatives platform with the addition of Morgan Stanley spinout Metalmark, Morgan Stanley continues its renewed private equity push with the hire of two buyout professionals.

The staff at Morgan Stanley Private Equity continues to swell as it raises a $6 billion (€4 billion) global fund, its first since renewing its interest in private equity under current chief executive, John Mack. Andy Shinn, formerly with The Carlyle Group, and Aaron Sack, previously with Apollo Management, have joined the firm’s New York office as executive directors.

Shinn spent nearly a decade at Carlyle, where he most recently led its deal for Home Depot’s wholesale supply unit, HD Supply, along with Bain Capital Partners and Clayton Dubilier & Rice.

Sack joined Apollo in 2005, participating in investments in sectors including industrial, consumer and hospitality. Before, he focused on private equity investments in industrial and natural resources companies as a vice president in Goldman Sachs’ Principal Investment Area.

“Attracting talent on the level of Andy and Aaron further secures our foothold in the private equity space,” Steve Trevor, co-head of both Morgan Stanley Private Equity and the Merchant Banking Division, said in a statement. “Since the start of 2007, Morgan Stanley has been focused on building a world-class private equity platform for third-party investors, which has at its center professionals uniquely positioned to identify and capitalize on leveraged buyouts, corporate divestitures, sponsored recapitalizations, joint ventures and other direct investments across various sectors.”

Morgan Stanley Private Equity is led by Trevor, who was recruited from Goldman Sachs last year, and fellow co-head Alan Jones, who was promoted internally. The division is building upon the foundations left by Morgan’s previous in-house buyout group, which was spun out three years ago under previous CEO Philip Purcell.

That group, Metalmark Capital, has just been added to Citi’s alternative investments platform. Metalmark manages all of Morgan Stanley Capital Partners’ past funds, save for its Asian funds (the bank closed its third Asian private equity fund on $1.5 billion in October), and will apparently continue to do so from within Citi.

A Morgan Stanley spokeswoman declined to comment on the new relationship between Citi and Metalmark.

Morgan Stanley Private Equity is part of the merchant banking division Morgan organised earlier this year. Led by Trevor and Jay Mantz, the division consists of private equity, infrastructure and real estate funds.