Morgan Stanley said to consider $500 million India fund, shifts some assets

Morgan Stanley's asset management division is exploring the establishment of a new $500 million fund focused on Indian healthcare investments. This initiative involves transferring a portfolio of eight healthcare-related assets, which include Omega Hospitals and RG Scientific Enterprises Pvt., into a continuation vehicle. The move aims to streamline investments for better management and potential returns, as the firm seeks to attract investors to this new strategy. The decision to create a continuation fund aligns with a broader trend among investment firms that are increasingly looking for alternative exit strategies beyond traditional initial public offerings (IPOs) and mergers. The secondary market for such investments has seen significant growth, with a reported increase of 48% globally, highlighting a rising appetite for private equity opportunities. Morgan Stanley Investment Management, which oversees assets worth $1.9 trillion, plans to leverage its previous investments in the Indian healthcare sector to generate further growth and returns for its investors. However, Morgan Stanley has not publicly commented on these developments, as discussions remain confidential.