Morgan Stanley team put $150m in China hydro outfit

Morgan Stanley Infrastructure teamed with FountainVest and Olympus to invest in Zhaoheng Hydropower. The transaction is the second investment for the consortium, which has invested a combined $300m in the Chinese firm.

A consortium including Morgan Stanley Infrastructure (MSI) made a $150 million investment in Zhaoheng Hydropower, a privately held Shenzhen, China, waterpower concern.

The investment marked the second the consortium has made in Zhaoheng. In 2010, MSI, FountainVest Partners and Olympus Capital combined to put $150 million into the company.

To date, Morgan, FountainVest, and Olympus together have invested $300 million in Zhaoheng. Separately, Olympus in 2009 made a $47 million investment in the company.

Founded in 2002, Zhaoheng is a 650-megawatt operation. China, meanwhile, is the biggest producer of waterpower in the world.

MSI, the infrastructure investment arm of Wall Street firm Morgan Stanley, completed the investment via its Morgan Stanley Infrastructure Partners (MSIP), a $4 billion fund.