“Exclusive: Morgan Stanley Plans to Increase New Global Megafund”

In an exclusive report, it has been uncovered that U.S. investment bank Morgan Stanley is currently in the process of raising capital for its latest global real estate opportunity fund. The new fund, named North Haven Real Estate Fund XI Global, has been registered in Luxembourg, with an SEC filing expected to be released soon.

This new fund comes after the success of its predecessor, North Haven Real Estate Fund X, which managed to raise $3.1 billion in equity back in 2021. Notably, investors in the previous fund agreed to extend its investment period by an additional 12 months last year to navigate the challenges posed by the dislocated market. Currently, the fund is nearing full investment.

Amidst a challenging fundraising environment for real estate, with only $10 billion raised in the fourth quarter of 2024 – the lowest since the start of the pandemic, Morgan Stanley remains optimistic. While the opportunity funds have the flexibility to invest in any sector globally, the bank has recently focused its deals on the living sectors.

In a strategic move, Morgan Stanley teamed up with Brightview Senior Living last December to acquire a portfolio of eight U.S. senior housing communities from Harrison Street. These communities, originally developed by Brightview, consist of 1,186 units spread across key metropolitan areas like Baltimore, Philadelphia, Boston, and Providence, Rhode Island. Notably, senior living has been a predominant theme in Morgan Stanley’s real estate operations since the onset of the pandemic, with the bank currently owning 30 senior living communities in the U.S., featuring nearly 3,000 independent living, assisted living, and memory care units.

Additionally, in 2022, Morgan Stanley’s funds supported Flint Housing, a UK social housing provider, with the aim of providing Flint with an investment capacity of £1 billion. This move underscores the bank’s commitment to investing in various sectors and geographies to diversify its portfolio.

Interestingly, the private market funds raised by Morgan Stanley have been rebranded as North Haven since 2015, paying homage to a town in Maine where one of the bank’s founders had a summer house. It is said that the decision to establish the bank was made on the deck of this historic summer house, marking the beginning of a successful journey in the world of finance.

Overall, Morgan Stanley’s initiative to raise a new global megafund signifies its confidence in the real estate market and its commitment to expanding its investment opportunities in various sectors and regions around the world.