Morgan Stanley raises $1.3 billion fund for high-growth private companies

Morgan Stanley’s investment manager has raised $1.3 billion for a new growth equity fund targeting high-growth private companies, including Databricks, Anduril Industries and Ramp.

The North Haven Growth & Innovation fund was oversubscribed, according to a statement released Wednesday. Morgan Stanley, its affiliates and employees committed 24% of the capital.

The fund will invest through both primary and secondary transactions, giving it flexibility to support new fundraising rounds as well as purchases of existing stakes in private companies.

The strategy expands Morgan Stanley’s push into the private-company ecosystem. Its investment manager oversees about $2 trillion and can help portfolio companies attract additional funding. The firm’s wealth-management business also gives employees and other clients ways to invest in private markets.

Morgan Stanley’s investment bank is pursuing relationships with fast-growing companies that may eventually seek strategic advice, private financing or access to public markets.

“Morgan Stanley’s relationships with growth companies can span their entire lifecycle, from early capital formation through private-market financing, strategic advisory, liquidity and ultimately the public markets,” David Miller, global head of private credit and equity at Morgan Stanley Investment Management, said in the statement.

The fund’s portfolio already includes companies operating across software, defense technology and financial services. Its focus reflects the continued demand for private capital as successful startups remain private for longer before considering an initial public offering.