Morgan Stanley Capital Partners (MSCP), the middle market private equity buyout team within Morgan Stanley Investment Management, announced the final close of North Haven Capital Partners VIII (NHCP VIII or Fund VIII) with total capital commitments of approximately $3.2 billion. Fund VIII was significantly oversubscribed, completing the fundraise above its target of $2.5 billion and hitting its $3.0 billion third-party hard cap in less than 12 months after its first close in the third quarter of 2024. Fund VIII represents a 60% increase in total commitments from North Haven Capital Partners VII, which closed at approximately $2.0 billion in 2021.

NHCP VIII received strong support from both existing and new investors, raising capital from leading institutional investors, high-net-worth family offices, and individual clients of Morgan Stanley Wealth Management across North and South America, Europe, and Asia.

Aaron Sack, Head of Morgan Stanley Capital Partners, said: “We are grateful for the support of our existing and new investors. We are excited to have capital to invest in a changing landscape, where valuations may prove more favorable than in past years. While we are mindful of the macroeconomic uncertainty ahead, we believe the U.S. middle market represents a dynamic engine of economic growth and entrepreneur-driven innovation. In combination with our long-time operating partner model, we will continue to seek differentiated returns over the course of the new fund.”

Fund VIII will continue MSCP’s decades-long strategy of partnering with founders and management teams to drive growth and operational value creation in the U.S. middle market, enabled by the resources of a global financial institution. Consistent with MSCP’s prior funds, Fund VIII will focus on control investments in services business models across the consumer, business, healthcare and industrial sectors; and will utilize MSCP’s proprietary value creation playbook to drive transformation across its portfolio companies, with a focus on accelerating organic growth, expanding into new markets, and building best-in-class durable organizations.

“We believe this fundraise underscores investor confidence in Morgan Stanley Capital Partners’ differentiated model of combining the strength and global reach of Morgan Stanley with the deep capabilities of our in-house operating team to consistently drive value creation,” said David N. Miller, Global Head of Private Credit and Equity. “We believe the team has a proven, repeatable strategy that has delivered strong returns through disciplined execution and transformational partnerships and we’re proud of the track record they have built and the opportunities ahead.”

To date, Fund VIII has deployed approximately 17% of committed capital across three investments: American Restoration, a residential and commercial property mitigation and restoration services company; FoodScience, a vertically integrated provider of pet and human nutritional supplements; and Thermogenics, a provider of industrial and commercial boiler service and maintenance across North America.

Source: Morgan Stanley