<article><a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Morgan+Stanley" target="_blank">Morgan </a><a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Morgan+Stanley" target="_blank">Stanley</a> said on Thursday it had raised $3.6 billion for its second infrastructure fund, North Haven Infrastructure Partners II, making it the latest Wall Street firm to target the sector.</article>

<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Morgan+Stanley" target="_blank">Morgan </a><a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Morgan+Stanley" target="_blank">Stanley</a> said on Thursday it had raised $3.6 billion for its second infrastructure fund, North Haven Infrastructure Partners II, making it the latest Wall Street firm to target the sector.
Investors are increasingly looking to infrastructure as an attractive alternative to low-yielding fixed income products with more stable returns than traditional private equity.
Morgan Stanley said it had also received commitments for up to $2.2 billion more from investors in NHIP II, including from public and private pension funds, sovereign wealth funds and insurance companies, bringing the total capital available raised for the fund to $5.8 billion.
The fund, which will invest in assets in the energy, utilities and transportation sectors, is part of its investment management division led by Dan Simkowitz, who took on the role last October. The division had more than $406 billion in assets under management at the end of last year.
Morgan Stanley&#8216;s first infrastructure fund raised $4 billion and has invested in parking meters in Chicago, natural gas gathering pipeline system <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Eureka+Hunter" target="_blank">Eureka Hunter</a>, a company that manages Italian airports and other assets.
&#8220;A lot of investors have been switching out of fixed income,&#8221; said Markus Hottenrott, chief investment officer for Morgan Stanley Infrastructure. &#8220;They want higher returns but still expect a long-term, predictable nature that infrastructure provides.&#8221;
<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=ArcLight+Capital+Partners" target="_blank">ArcLight Capital Partners</a> last year closed a $5.6 billion fund focused on energy infrastructure investments and <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=KKR+%26+Co+LP" target="_blank">KKR &amp; Co LP</a> also closed a $3.1 billion fund.
<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Global+Infrastructure+Partners" target="_blank">Global Infrastructure Partners</a> is seeking to raise as much as $15 billion for its third fund, according to reports last year.
The amount of uninvested capital from infrastructure funds topped $108 billion in 2015, an all-time high, according to market research firm Preqin, as firms look to raise large funds while facing competition for assets.
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Reuters

Morgan Stanley said on Thursday it had raised $3.6 billion for its second infrastructure fund, North Haven Infrastructure Partners II.

Morgan Stanley closes second infrastructure fund at $3.6b

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Morgan Stanley closes second infrastructure fund at $3.6b

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