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Morgan Stanley raises $1.3B for inaugural growth equity fund backing Databricks, Anduril, and Ramp
The Wall Street giant's investment arm oversubscribed its first dedicated growth equity vehicle, with the firm eating its own cooking by committing 24% of the capital.
Morgan Stanley Investment Management has closed its first dedicated growth equity fund at $1.3 billion, blowing past its original fundraising target. The North Haven Growth & Innovation Fund, which wrapped up on September 16, landed well above the billion-dollar mark that was initially floated.
The fund has already put capital to work in some of the most talked-about private companies in tech, including Databricks, Anduril, and Ramp.
Skin in the game
Perhaps the most telling detail: Morgan Stanley and its affiliates committed 24% of the fund’s total capital.
The NHGIF is designed to offer flexible capital solutions to private companies, including both primary investments and secondary transactions. That secondary component matters because it allows the fund to buy existing shares from early employees or venture investors looking for liquidity, giving MSIM access to proven companies without waiting for a traditional fundraising round.
Why growth companies are staying private longer
The fund’s thesis rests on a structural shift that has been reshaping capital markets for over a decade. Companies are staying private far longer than they used to. Where a fast-growing tech firm might have IPO’d at a $1 billion valuation in 2010, today’s equivalents are routinely reaching $10 billion or more before even considering a public listing.
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Databricks is a textbook example. The data and AI company has raised massive private rounds and reportedly carried a valuation north of $40 billion in recent fundraising, yet it remains privately held. Anduril, the defense tech company founded by Palmer Luckey, has similarly grown into a multi-billion dollar enterprise without going public. Ramp, the corporate card and expense management platform, has followed the same playbook.
MSIM’s broader alternatives push
The NHGIF isn’t an isolated bet. It fits into a much larger strategic buildout at Morgan Stanley Investment Management, which now manages $280 billion in alternative assets.
The fund also builds on MSIM’s earlier work in growth investing. The firm previously operated expansion capital vehicles under the North Haven brand, including a $725 million North Haven Expansion Equity IX fund that closed in 2023. The new NHGIF represents a step up in both scale and ambition, nearly doubling the capital raised and broadening the investment mandate to include more innovation-focused companies.