About This Fund
North Haven Private Equity Co-Investment Opportunities Fund III (PECO III) is Morgan Stanley Investment Management’s latest private equity co-investment vehicle, which closed at its $2.3 billion hard cap in April 2025. The fund continues the firm’s 25-year legacy in co-investments and follows the success of its predecessors, PECO I and PECO II. Managed by Morgan Stanley Private Equity Solutions, PECO III focuses on partnering with top-tier buyout managers, primarily in the lower middle market. PECO III aims to make 30 to 40 co-investments in companies with enterprise values typically under $500 million. The fund emphasizes investments alongside sector-specialist firms managing less than $2 billion in capital. This strategy targets businesses that rely more on fundamental growth strategies rather than leverage, aiming for resilient performance across economic cycles. With a global investor base, including both returning and new investors like the Wyoming State Loan and Investment Board, PECO III has already made over 10 investments. The fund's approach is designed to provide differentiated private equity exposure through co-investments, leveraging Morgan Stanley's extensive network and expertise in the private markets.