By Stephen Aldred
HONG KONG (Reuters) - Morgan Stanley said its Asia private equity unit has raised $1.7 billion in its fourth Asia fund as it seeks investment opportunities in China and South Korea.
The fund, Morgan Stanley Private Equity Asia IV LP, has already made two investments from the new fund, and raised more capital than initially targeted, the Wall Street bank said in a statement on Monday.
Morgan Stanley had originally targeted $1.5 billion with the fund, the same as its third Asia fund.
One of the key focus areas for Fund IV will be China.
"The last two years in China, we have seen the most attractive entry prices we have seen in the last 10 years," Chin Chou, CEO of Morgan Stanley Private Equity Asia (MSPEA), told Reuters.
Morgan Stanley's fund-raising comes as many banks spin off their private equity arms due to the Volcker rule.
The post-2008 crisis regulation restricts U.S. banks from trading on their own accounts and caps their investments in risky businesses such as hedge funds and private equity to just 3 percent of Tier I regulatory capital.
Despite that restriction, Morgan Stanley Private Equity Asia (MSPEA) has raised more money with Fund IV, its first fund since the Volcker rule, and with more of it from third-party investors.
The firm raised $1.65 billion from third-party investors for Fund IV, compared to $1.1 billion for Fund III. Morgan Stanley contributed $50 million, or 3 percent of the latest fund, compared to $400 million, or 27 percent of the previous fund. Chou told Reuters that the successful fund-raising was partly because it was the firm's fourth fund, and because the firm has a track record of strong performance.
Chou declined to comment on details of performance, but a source with knowledge of the firm said its first three funds are returning a net internal rate of return of over 20 percent, and have returned more than four times money on a gross basis for realised investments.
Making two to three times money is cons
shorts cannot work without mm backings.they themselves are shorts and then become longs.the game is being played in 5 min charts till retail investors cave in and leave.lousy markets ..when will fundamentals meet technicals...
thanks jet.took a position of 2000 shrs.awaiting golden cross over n 5 min charts.good luck to all longs
1.why no analysts coverage
2.the website does not seem to be updated
3.who are its distributors
4.why raise money in us than in china.
the charts volatility in recent past show a spike in intrest ,i want to invest in this company please help.
knew something is wrong here.the stocks which cannot end green on a day the markets are green ,just imagine what happens on a red day.
the true winner is sherwood and lot of new bag holders created who now will keep waiting so that they just get back their money.lol
2.5 b was for Anik buyout if that happens .no interest in itmn
the stock pattern is so strong still stock selling off......some one good at understanding fundamentals playing short,but chart says the opposite.lets wait and watch