Morgan Stanley’s Latest CRE Fund-Raise Tops Expectations

Its North Haven Real Estate Fund X Global raised $3.1 billion from public and private pension funds.

Money continues to flood into value-add real estate propositions at an expectation-topping pace.

Morgan Stanley Real Estate Investing (MSREI), the private real estate investment arm of Morgan Stanley Investment Management, today announced it has raised $3.1 billion for North Haven Real Estate Fund X Global, exceeding its original fundraising target and surpassing the size of its predecessor fund, North Haven Real Estate Fund IX Global. 

Global interest is helping to keep commercial real estate at the top of minds. G10 investors include a sophisticated group of public and private pension funds, sovereign wealth funds, insurance companies, and individuals from around the world, with over 80 percent of the institutional capital representing commitments from existing North Haven Real Estate clients.

With a flexible global mandate and a patient, disciplined approach, G10 will follow a strategy that the MSREI team has successfully employed in its three predecessor global funds – G7, G8, and G9 – across which they have acquired over $17 billion of gross real estate assets in over 100 separate investments. Capital deployment for G10 is well underway and MSREI has a substantial pipeline of opportunities in process.

G10 has been established to make value-add/opportunistic real estate investments globally with the goal of generating superior risk-adjusted returns utilizing prudent leverage. 

“We are extremely pleased with the continued investor support and trust from both our long-standing partners as well as new investors in G10, the next in our global real estate fund series,” John Klopp, Head of Global Real Assets for Morgan Stanley Investment Management, said.

“In today’s environment, sophisticated investors are increasing their allocations to Real Assets, seeking the strong returns, diversification and inflation protection that real estate and infrastructure can provide.” 

Dan Simkowitz, Head of Morgan Stanley Investment Management, said, “The strong investor demand for this fund underscores our continued focus on providing public and private markets solutions across real estate and infrastructure which meet our clients’ objectives. G10 builds on the strength of our growing alternatives platform that has over $100 billion in assets under management including $52 billion in Real Assets strategies.”