Morgan Stanley raises 1BB for middle market credit and proves that there is always money for good investments

To the purveyors of the "credit is dead" philosophy, I would say that there is always money available for good investments.  There have been money for 57 IPOs in 2010.  They have gone for companies which do everything from commodities extraction to high tech. 

While guidelines for houses have tightened significantly, it is likely because it is a terrible investment and housing prices will go down.  Credit is drying up for small businesses, but so are profits.   Large companies and even medium size companies seem to be riding the recession well. 

Morgan Stanley has just raised 1 BB in credit which is going toward middle market companies.  Just goes to show that money is never scarce.  It's just scarce for bad investments.  

Maybe it also helps that the capital raising is coming from Morgan Stanley, that everyone knows will get bailed out if it becomes insolvent.  Via MS

Morgan Stanley Investment Management (MSIM) announced today that Morgan Stanley Credit Partners L.P. ("MS Credit" or the "Fund"), its first dedicated corporate mezzanine fund, has held its final closing with $956 million in capital commitments.

"This successful fund raise demonstrates the strength of the Morgan Stanley Credit Partners' investment team, and the confidence investors have in Morgan Stanley," said Gregory Fleming, President of MSIM and Global Research. "The demand for alternative investments, combined with the team's leveraged finance expertise and ability to leverage Morgan Stanley's global resources and relationships, contributed to the strong response from investors."

MS Credit invests primarily in fixed income securities issued by middle market companies in the context of leveraged buyouts, debt refinancings, acquisitions and recapitalizations across a broad range of industry sectors, with a geographic focus in North America and Western Europe. To date, the Fund has invested more than $160 million in five portfolio companies.

"The market for mezzanine debt investing is benefiting from favorable secular trends resulting from an underlying imbalance between the demand for and the supply of capital, particularly for middle market companies," said Hank D'Alessandro, Managing Director and Head of Morgan Stanley Credit Partners. "We already have a robust investment pipeline in place, and we believe the Fund is well-positioned to continue to benefit from these dynamics."


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