Morgan Stanley fund raises $1bn

MORGAN Stanley Investment Management, the asset management unit of Morgan Stanley (MS), said its first dedicated corporate mezzanine fund has closed with $956m (£607m) in capital from investors, in the largest such launch in a year.

The fund, Morgan Stanley Credit Partners, or MS Credit, invests primarily in fixed income securities issued by middle-market companies in conjunction with leveraged buyouts, debt refinancings, acquisitions and recapitalisations.

To date, the fund has invested more than $160m in five portfolio companies.