The world's largest brokerage firm, Morgan Stanley, had announced that its money management division was able to raise US$770 million for a fund that would purchase private equity fund interests in the secondary markets.

A statement from a division of the bank confirmed that it had exceeded the target ceiling of US$600 million for the fund. The fund is named the Morgan Stanley Global Secondary Opportunities Fund LP II. The said fund pool would be investing in 'off-market' deals which include smaller buyouts and other special situations,

According to Senior Portfolio Manager Jon Costello of Morgan Stanley's Alternative Investment Partners, "We recently completed several restructuring deals and believe these types of deals are an ever important and growing part of the broader secondary market."

The investors of the fund include the current clients of Morgan Stanley's Alternative Investment Partners, as well as new limited partners, which comprise of wealthy individuals, endowments, insurance companies and pension plans, according to the statement.