Fundraising

MSIP II reaches $1.5bn at first close

Morgan Stanley Infrastructure has so far raised $1.5bn for its second infrastructure fund, MSIP II, which has a target of $4bn.

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Morgan Stanley Infrastructure (MSI), the infrastructure investment and management platform of the Wall Street investment bank, has held a first close on its second infrastructure fund, raising $1.5 billion so far, Infrastructure Investor was able to confirm.

MSI began raising funds for Morgan Stanley Infrastructure Partners II (MSIP II) in early 2013, aiming to raise $4 billion in total, the same amount it had raised for its flagship infrastructure offering, MSIP I, which closed in May 2008.

It is unclear whether MSIP II will follow the same investment strategy as its predecessor, which invested across a number of sub-sectors, including transportation, energy infrastructure, water, and telecommunications.

A spokesman for MSI declined to comment.

In 2012, MSI's chief investment officer and global head Sadek Wahba left the firm to form rival fund manager I Squared Capital (ISQ).A number of former MSI executives also left Morgan Stanely to join him. Infrastructure Investor reported in June this year that the firm had raised $1.2 billion for its debut infrastructure fund, which has a target of $2 billion.   

In May 2013, Markus Hottenrott, previously one of three co-heads at MSI, stepped up to become global head as part of a reshuffle that also saw Chris Koski, the former global head of infrastructure at the Abu Dhabi Investment Authority (ADIA) become MSI's global head of investment strategy.  

Since then, MSI had made hires including Mark McLean, former head of the financial institutions group at Credit Suisse Australia, to spearhead its Asia Pacific strategy; and Ahmad Atwan, an oil and gas expert and former senior executive with BlackRock, to the New York team.      

Morgan Stanley Infrastructure, part of Morgan Stanley Investment Management, invests in and manages diverse assets covering 12 sectors in eight countries. It invests in sectors such as transportation, energy and utilities, communications and social infrastructure through its teams in North America, Europe and Asia.