HONG KONG, July 7 Morgan Stanley said on
Monday that its Asia private equity unit has raised $1.7 billion
in its fourth Asia fund as it seeks investment opportunities in
China and South Korea.
The fund, Morgan Stanley Private Equity Asia IV LP, has
already made two investments from the new fund, and raised more
capital than initially targeted, the Wall Street bank said in a
One of the key focus areas for Fund IV will be China.
"The last two years in China, we have seen the most
attractive entry prices we have seen in the last 10 years," said
Chin Chou, CEO of Morgan Stanley Private Equity Asia (MSPEA).
Morgan Stanley's fund-raising comes as many banks spin off
their private equity arms due to the Volcker rule.
The post-2008 crisis regulation restricts U.S. banks from
trading on their own accounts and caps their ' investments in
risky businesses such as hedge funds and private equity to just
3 percent of Tier I regulatory capital.
MSPEA has invested around $2.5 billion in more than 50
investments in the region in the past 20 years.
(Reporting by Stephen Aldred; Editing by Denny Thomas and Ryan