Morgan Stanley, the US’ second-biggest securities firm by market value, raised US$4 billion for a fund that invests in infrastructure projects such as ports and parking lots, the company said in a statement yesterday.
The amount raised exceeded the company’s initial target of US$2.5 billion, Morgan Stanley said in the e-mailed statement.
“The successful fund-raising underscores the particular demand for infrastructure investment and, broadly, for alternative assets that generate long-term stable cash flows,” James Gorman, co-president of Morgan Stanley, said in the statement.
Chief executive officer John Mack has bolstered Morgan Stanley’s money-management unit by adding alternatives such as hedge funds, private equity and the infrastructure fund, which started in 2006. Infrastructure funds are tapping a surge in spending by governments and private companies on services such as water, electricity and telecommunications.
Run by Morgan Stanley Infrastructure, the fund invests in assets that provide public goods or services in sectors including transportation, energy and utilities, social infrastructure and communications, the statement said.
Headed by Sadek Wahba, Morgan Stanley Infrastructure’s team has offices in New York, London and Hong Kong.