Get the latest Age of Conan news and views at Massively!

AOL Money & Finance

Morgan Stanley raises $4 billion for global infrastructure fund

Morgan Stanley has raised $4 billion for a fund that will invest in global infrastructure projects, including energy and transportation systems, the company announced Monday.

Morgan Stanley said the $4 billion in equity commitments exceeded the company's initial fund goal by $1.5 billion and "underscores the particular demand for infrastructure investment, and broadly, for alternative assets that generate long-term, stable cashflows."

Shares of Morgan Stanley (NYSE: MS) gained 67 cents to $46.62 on the news on Monday at mid-day.

In a statement, Sadek Wahba, chief investment officer and global head of Morgan Stanley Infrastructure, said the fund has investments exceeding $1 billion in enterprise value to-date.

Infrastructure spending boom


Economist Glen Langan said investment banks, hedge funds and other institutional investors are hoping to take advantage of the global spending boom by emerging market governments and corporations to build infrastructure, including highways/roads, ports, but also electricity, water and telecommunications facilities. Emerging markets are upgrading facilities -- and in some cases building new facilities for the first time -- to meet commercial and social needs as their economies develop.

"You can sense the tactical shift among institutional investors -- housing and mortgage-back securities are out, infrastructure investment is in. The key phrase in their [Morgan Stanley's] announcement today is 'uncorrelated investment returns.' The push is on now in institutional investor circles for stand-alone investments not linked to complex derivatives or even the current U.S. business cycle," Langan said. "It's great to see, for emerging markets, because these markets will expand and develop, increasing incomes and prosperity in these nations."

Further, Langan said he expects investment in developed-world infrastructure to gain momentum as well. "In Europe, the electric grid is at least one generation behind, and in the U.S., the electric grid, water systems and bridge networks need upgrades, among other systems, he said. He added that the U.S.'s public policy landscape stemming from the upcoming 2008 presidential election will help determine the scope of domestic infrastructure investment opportunities available to investors.

Related Posts

Add your comments

Please keep your comments relevant to this blog entry. Email addresses are never displayed, but they are required to confirm your comments.

When you enter your name and email address, you'll be sent a link to confirm your comment, and a password. To leave another comment, just use that password.

To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br> tags.

New Users

Current Users

Symbol Lookup
IndexesChangePrice
DJIA+152.2511,384.21
NASDAQ+51.122,294.44
S&P 500+21.391,273.70

Last updated: July 09, 2008: 08:30 AM

BloggingStocks Exclusives

Hot Stocks

BloggingStocks Featured Video

TheFlyOnTheWall.com Headlines

WalletPop Headlines

AOL Business News

Latest from BloggingBuyouts

Sponsored Links

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

Weblogs, Inc. Network