Morgan Stanley

Morgan Stanley, a globally recognized financial services firm headquartered in New York City, extends its reach into the venture capital and growth equity landscape primarily through Morgan Stanley Investment Management (MSIM), specifically via its dedicated growth equity platform, Morgan Stanley Expansion Capital. This arm focuses on providing capital to high-growth companies that have demonstrated strong product-market fit and significant revenue traction, spanning sectors such as technology, healthcare, and consumer. Unlike traditional early-stage venture capitalists, Expansion Capital targets later-stage growth equity opportunities, aiming to support companies in scaling their operations and expanding market share.

Morgan Stanley Expansion Capital's investment strategy typically involves taking minority stakes in promising businesses, partnering closely with management teams to offer strategic guidance and leverage Morgan Stanley's extensive network and resources. The firm's deep industry expertise and global presence allow it to identify and nurture companies poised for significant growth. Their investment approach emphasizes long-term value creation, often participating in follow-on rounds to support portfolio companies through various growth phases.

The typical first cheque size for Morgan Stanley Expansion Capital ranges from $25 million to $100 million. This range reflects their focus on substantial growth rounds for companies that are beyond the seed or Series A stages. For instance, their most recent fund, Morgan Stanley Expansion Capital IV, closed in 2023 with $1.6 billion in commitments, indicating their significant capacity for large-scale investments. Prior to this, Expansion Capital III closed in 2021 with $1.4 billion. These substantial fund sizes underscore Morgan Stanley's commitment to being a significant player in the growth equity market, providing the necessary capital to propel mature startups into market leaders.