Morgan Stanley (NYSE:MS) announced today that its private equity division, Morgan Stanley Private Equity (MSPE), is to establish a presence in India from May 1. The Firm also announced that it has hired Aluri Srinivasa Rao to be a senior member of its Asia private equity team and to run the group’s private equity investments in India. Mr. Rao, 43, joins from ICICI Venture as a Managing Director. 

Today’s announcement builds on Morgan Stanley’s growing presence in India, following the decision last year to develop a wholly-owned integrated platform in the country. 

Morgan Stanley said that MSPE Asia will invest in India through its third Asia-dedicated private equity fund, the US$1.5 billion Morgan Stanley Private Equity Asia III Fund, which closed in the third quarter of 2007.  The Fund’s investors comprise leading global institutions and high net-worth individuals, as well as Morgan Stanley and its employees. 

Morgan Stanley said that MSPE Asia will invest in India through its third Asia-dedicated private equity fund, the US$1.5 billion Morgan Stanley Private Equity Asia III Fund, which closed in the third quarter of 2007.  The Fund’s investors comprise leading global institutions and high net-worth individuals, as well as Morgan Stanley and its employees. 

Aluri Rao starts in his new role on May 1, 2008.

INFO SOURCES

Morgan Stanley (NYSE:MS)

FIRMS

MSPE Asia is one of the leading private equity investors in Asia. The group has invested in the region for more than 15 years, developing one of the leading investment track records during that time. The group has made a number of investments in businesses throughout Asia, including most recently Belle International, Dongxiang Sports and Shanshui Cement in China, Rotem and Ssangyong Corporation in South Korea, CTCI Corporation in Taiwan, and Asia Capital Reinsurance in Singapore. In addition, it previously invested in Ping An Insurance, Mengniu Dairy, China Paradise and Hengan International in China, eAccess in Japan, HTL International in Singapore and Landmark Investment Trust Company in South Korea. 

MSPE Asia is part of Morgan Stanley’s global private equity business within Merchant Banking, a division of Morgan Stanley Investment Management. Merchant Banking sponsors traditional private equity funds, infrastructure-focused funds, and one of the industry’s leading real estate investing platforms globally. By leveraging the Morgan Stanley network and brand to generate ideas, harness relationships and create investment opportunities, Morgan Stanley’s Merchant Banking Division delivers superior returns for its investor clients.

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 33 countries.

PEOPLE

Chin Chou, Hong Kong-based Managing Director and Chief Executive Officer of MSPE Asia

Narayan Ramachandran, Managing Director and Country Head of Morgan Stanley in India

Aluri Srinivasa Rao

Most recently, Mr. Rao was Director of Private Equity at ICICI Venture and one of the senior private equity professionals on the team. He has led numerous landmark private equity investments particularly in the healthcare sector.

Prior to joining ICICI Venture in 2002, Mr. Rao held various senior positions in a number of leading Indian pharmaceutical companies, including Ranbaxy and Natco Pharma. He brings with him over 18 years of organizational building and corporate experience in India, the UK and USA. He is a graduate of BITS, Pilani, and a Sloan Fellow from the London Business School. 

At ICICI Venture, Mr. Rao led transactions including the buyout of allied businesses of Ranbaxy Laboratories, the tie-up with Dr Reddy’s, roll ups such as Iven Medicare and Swiss Biosciences as well as growth investments in Avesthagen, Arch Pharma, Malladi, Bharat Biotech, Metropolis and Onconova amongst others. He served as a member of the board on several of these portfolio companies.