Morgan Stanley Alternative Investment Partners (AIP Private Markets) has completed the final close of its first standalone co-investment fund with commitments totaling $425 million and exceeding the company's goal of $350 million.

AIP Private Markets is an investment team within Morgan Stanley Investment Management.

The company announced that its Private Equity Co-Investment Fund 1 (PECO) exceeded AIP's Private Markets' target and is designed to achieve strong risk-adjusted returns with investments of direct co-investment and private equity sponsors in buyout and growth transactions across North America and Europe.

“AIP Private Markets is a long-standing, deeply resourced and highly respected co-investor, and we are pleased that our clients can benefit from our valuation experience and access to a strong and diverse pipeline of global investment opportunities,” AIP Private Markets head John Wolak said in a press release. 

"We believe that our team’s ability to respond rapidly to private equity general partners, particularly at the smaller end of the market, affords us the opportunity to be highly selective in making investments,” AIP Private Markets managing director Neha Champaneria Markle said in a statement. “In our view, PECO I provides our clients with unique exposure to these attractively positioned and well-vetted private equity assets in a highly efficient way." 

According to AIP Private Markets, PECO 1 investors include private and public pensions, corporations, foundations, family offices and high net worth individuals.