Morgan Stanley Investment Management has closed North Haven Tactical Value II Fund LP (“NHTV II” or the “Fund”) and affiliated funds at approximately $2 billion of committed capital, representing a nearly 50 percent increase over the predecessor fund NHTV I. The Fund seeks to provide credit, hybrid and non-control equity investments in high-quality companies across sectors and geographies. Investors in the Fund include some of the world’s largest and most sophisticated institutional investors as well as qualified individual investors.

Commenting on the close, Thomas Cahill and Pedro Teixeira, Co-Heads of Morgan Stanley Tactical Value, said: “We are pleased to close our second fund to provide investors exposure to a highly diversified portfolio of uncorrelated investments unconstrained by the narrower mandates of traditional private equity or private credit strategies. Our team’s deep in-house structuring capabilities and breadth of domain expertise across asset classes, combined with access to the Morgan Stanley platform, position the Fund to provide nimble, opportunistic capital, often in situations where broader capital markets solutions are unavailable.”

Leveraging Morgan Stanley’s expansive client relationships and access to management teams, the investment team originates bespoke transactions sourced from the Firm’s Global Capital Markets, Investment Banking, Sales & Trading, Wealth Management and Investment Management groups. In addition, the investment team relies on a broad external sourcing network, built over the last seven years. Combining the two sourcing channels, the team aims to build a highly selective, low correlation portfolio, benefiting from downside protection and upside participation.

“We are pleased to have raised $2 billion of committed capital with the support of our investors,” said David N. Miller, Global Head of Private Credit and Equity for Morgan Stanley Investment Management. “The Fund’s differentiated strategy paired with our team’s expertise and Morgan Stanley’s global network offers a unique opportunity for investors to build a portfolio with a strong value proposition.”