Morgan Stanley Investment Management (MSIM), announced today the final close of North Haven Private Equity Co-Investment Opportunities Fund III LP (PECO III) oversubscribed at its hard cap with approximately $2.3 billion in total commitments. PECO III offers private equity exposure through co-investments alongside best-in-class buyout managers operating primarily in the lower middle market.

PECO III is managed by Morgan Stanley Private Equity Solutions, the multi-manager private equity platform within MSIM’s $240 billion alternatives platform. The Fund is the successor to two dedicated co-investment funds – PECO I and PECO II – and the continuation of Morgan Stanley Private Equity Solutions’ 25-year track record executing co-investments, which includes nearly $6 billion of commitments since inception at Morgan Stanley in 1999.

Neha Champaneria Markle, the Head of Morgan Stanley Private Equity Solutions, said: “We have a long history of serving as a partner of choice to sought-after buyout funds, and the success of the PECO program is a testament to the quality and discipline of our stable of lower middle market GP relationships.

“We are proud of the strength of our robust multi-manager private equity platform and our demonstrated ability to provide differentiated solutions to both private equity managers and investors on a global scale,” added David N. Miller, Global Head of Morgan Stanley Private Credit & Equity. “The Private Equity Solutions team leverages their distinct investment culture, expansive network of primary fund relationships, diligence and execution experience, and access to Morgan Stanley’s broader platform resources to consistently deliver attractive performance for investors.”

Source