Morgan Stanley raises $1.3B for inaugural growth equity fund backing Databricks, Anduril, and Ramp

Morgan Stanley Investment Management has closed its first dedicated growth equity fund at $1.3 billion, blowing past its original fundraising target. The North Haven Growth & Innovation Fund, which wrapped up on September 16, landed well above the billion-dollar mark that was initially floated. The fund has already put capital to work in some of the most talked-about private companies in tech, including Databricks, Anduril, and Ramp. Skin in the game Perhaps the most telling detail: Morgan Stanley and its affiliates committed 24% of the fund’s total capital. The NHGIF is designed to offer flexible capital solutions to private companies, including both primary investments and secondary transactions. That secondary component matters because it allows the fund to buy existing shares from early employees or venture investors looking for liquidity, giving MSIM access to proven companies without waiting for a traditional fundraising round. Why growth companies are staying private longer The fund’s thesis rests on a structural shift that has been reshaping capital markets for over a decade. Companies are staying private far longer than they used to. Where a fast-growing tech firm migh...