North America: Morgan Stanley to launch third infra fund this year

17 August 2018 - 12:00 am UTC

Morgan Stanley’s infrastructure fund manager North Haven Infrastructure Partners (NHIP) is expected to start fundraising for its third infrastructure fund later this year, said two sources briefed on the situation.

The fund has a target of USD 4bn, it is understood.

Advisors have not been hired yet, Inframation understands. Probitas Partner was the placement agent on NHIP II, according to Inframation Deals.

Morgan Stanley declined comment on the situation.

As reported, NHIP II reached final close in March 2016 with USD 3.6bn in commitments, falling slightly short of its USD 4bn target. The fund has primarily invested in midstream and power assets following its first close in 2014, including its recent USD 900m buyout of the Bayonne Energy Center, for which it paid USD 656m in cash and assumed USD 244m in debt. It also acquired Brazos Midstream Holdings for USD 1.75bn.

Roughly 40% of the limited partners’ commitments to NHIP II had been used up as of 31 March, according to a prospectus from pension fund Stanislaus County Employee Retirement Association.

NHIP’s first two funds targeted investments in brownfield assets across the transportation, energy and utilities sectors with a focus on OECD countries (Americas, Europe and Asia) and up to 15% allocated for emerging markets.

Morgan Stanley