Morgan Stanley Plans $500 Million India Fund and Portfolio Shift
Morgan Stanley’s asset management division is contemplating the launch of a $500 million India continuation fund, with plans to transition several healthcare investments, such as Omega Hospitals and RG Scientific Enterprises Pvt., into this new vehicle. This strategic move signifies a growing confidence in India’s healthcare sector and highlights Morgan Stanley’s evolving asset management strategy.
Key Details About the India Fund
– Continuation Fund: The new fund aims to consolidate and expand Morgan Stanley’s existing investments in India’s thriving healthcare sector.
– Portfolio Shift: The firm is reportedly speaking with potential investors regarding the transfer of eight key healthcare-focused investments into this continuation vehicle.
– Target Funding: Morgan Stanley is targeting to raise $500 million for this initiative and has begun outreach to investors regarding the plan.
Investment Highlights
– Omega Hospitals: Morgan Stanley made a strategic investment in Omega in 2024, acquiring a minority stake in the firm.
– RG Scientific: The asset manager also secured a controlling stake in RG Scientific during the same year, indicating its commitment to the healthcare landscape in India.
Market Context
The firm’s initiative comes amid a broader trend where investment firms are exploring exit strategies beyond traditional routes like initial public offerings and mergers. The global secondary market in private equity surged by 48%, reaching $240 billion in 2025, as per a report by Jefferies Financial Group. This rise underscores the increasing appeal of continuation funds as a viable alternative for managing investments.
Morgan Stanley Investment Management, which oversees assets totaling approximately $1.9 trillion, utilizes its alternative arm, Morgan Stanley Private Equity Asia, to invest in these promising assets.
Conclusion
Morgan Stanley’s ambition to launch a $500 million India fund emphasizes its strategic redirection towards the Indian healthcare sector. As the firm navigates this dynamic investment landscape, it showcases a commitment not only to innovation in alternative asset management but also to fostering growth in one of the world’s most promising markets.