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Morgan Stanley Investment Management raises 125 million USD for global impact fund

First Published 23rd May 2017

Morgan Stanley Investment Management has raised more than $125 million in final commitments for its first global impact fund, PMF Integro Fund I.

James Gorman, Morgan Stanley

James Gorman, Morgan Stanley

Launched in partnership with the Morgan Stanley Institute for Sustainable Investing, Integro invests in private equity funds that offer the potential for compelling financial return while demonstrating positive environmental impact, social impact or both. The fund is managed by AIP Private Markets, the private markets solutions team within Morgan Stanley Investment Management.

"Sustainable Investing is an incredibly important part of our Firm's DNA, and the launch of Integro underscores our commitment to promote sustainable finance solutions while serving the needs of our clients," said James Gorman, Chairman and CEO of Morgan Stanley. "From education and healthcare in South Asia, to financial inclusion in South America, the Fund epitomizes our belief as a firm that there are opportunities for investors of all types to pursue both positive financial return and sustainable impact."

Integro targets private equity funds with high organic growth that will drive strong financial returns and meaningful positive impact. The Fund seeks to provide investors with exposure to a portfolio that is diversified by geography, theme and impact outcomes.

The AIP Private Markets team believes that this approach will maximize commercial returns to investors and increase access to quality jobs, education and healthcare, among other socially beneficial outcomes, for underserved populations.

In addition, Integro targets funds that strive to impact the environment in a positive manner and reduce the effects of climate change.

While the Fund seeks geographic diversification, consistent with the team's views on the best way to achieve broad and large-scale positive impact, the likely focus of the majority of the Fund's underlying managers will be on opportunities in emerging and frontier markets. In addition, Integro plans to provide detailed, impact-related reporting alongside traditional financial statements for all investors.