Morgan Stanley IM launches European private income fund
Morgan Stanley Investment Management has launched a private income fund which will focus on European direct lending.
The Morgan Stanley European Private Income Fund (EPIF) is a Part II SICAV that offers income-focused investors the opportunity to gain exposure to the European direct lending market in a semi-liquid structure.
“We’re pleased to offer our clients access to income opportunities within the European direct lending market, which we believe offers the prospect of attractive risk-adjusted returns,” said Mark Jochims, head of European private credit for Morgan Stanley Investment Management.
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“EPIF’s highly selective investment philosophy provides investors exposure to a growing asset class, whilst leveraging the deep operational expertise provided by our wider Morgan Stanley private credit platform.”
EPIF will originate and underwrite a diverse portfolio of privately negotiated, senior secured term loans to European middle-market companies. The companies will typically be in leading market positions, with proven management teams, which position them to generate strong and stable free cash flows.
EPIF is expected to invest approximately 10 per cent of its capital in broadly syndicated loans and bonds in an effort to create more liquidity for investors.
Read more: Morgan Stanley considers private credit fund launch
Investors can invest via monthly subscriptions and earn monthly income distributions and expected quarterly liquidity after a one-year lock-up period, subject to a quarterly five per cent fund-level redemption gate and some other restrictions.
“We’re delighted our fund can provide private wealth banks and managers with access to private credit,” said Federico Vettore, head of European private markets for wealth at Morgan Stanley Investment Management.
“Morgan Stanley Investment Management is focused on bringing private markets solutions to eligible European clients across the region, leveraging our deep and extensive private markets and US wealth sector experience.”
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