Morgan Stanley has raised $4bn (£2bn) for a global infrastructure fund aimed at providing investors with a ‘long-term’ source of income.
In an announcement made this morning, Morgan Stanley said it had exceeded the firm’s initial target of raising $2.5bn (£1.25bn) of equity for its Morgan Stanley Infrastructure Partners fund.
The fund, which will be run out of New York, London, Hong Kong and Beijing, raised its capital in North America, Europe, the Middle East and Asia. Its launch comes just weeks after RREEF and ING launched international infrastructure funds.
James Gorman, co-president of Morgan Stanley, said: ‘The successful fund-raising underscores the particular demand for infrastructure investment, and broadly, for alternative assets that generate long-term stable cashflows.’
‘Infrastructure is now an important component of any asset allocation strategy; it offers portfolio diversification and the ability to invest in ‘real’ assets, with uncorrelated investment returns relative to other asset classes.’
The fund will invest in assets that ‘provide public goods or essential services in sectors such as transportation, energy and utilities, social infrastructure and communications.’