Newsletter Edition 74
Jun 26, 2025
Morgan Stanley Raises $3.2B for Oversubscribed Mid-Market Buyout Fund
Morgan Stanley Capital Partners has successfully closed its latest buyout vehicle, North Haven Capital Partners VIII, at $3.2 billion, marking a notable achievement amid a tougher fundraising environment for private equity, Bloomberg reports.
The new fund—targeting mid-market companies with EBITDA between $20 million and $30 million—represents a 60% increase over its predecessor and includes a $200 million general partner commitment, according to Aaron Sack, Head of Morgan Stanley Capital Partners.
North Haven VIII plans to make up to 16 platform investments, slightly above the historical average for the franchise. Sack emphasized that the team’s disciplined and active investment strategy resonated with investors navigating a cautious capital deployment cycle.
Despite headwinds across the private equity space, including delayed exits and slower distributions, Morgan Stanley secured support from a global LP base, with notable new investors from Asia and the Americas joining returning backers.
While Sack did not provide detailed performance metrics, he noted that the firm’s 2016 vintage $1.5 billion Fund VI is nearly fully monetized, and the $1.6 billion Fund VII has a “robust exit pipeline” expected to materialize this year.
He also said the return of “more rational valuations” in the market is creating fresh opportunities for disciplined investors.
Morgan Stanley Capital Partners plans to expand its 28-member investment team, particularly at the mid-level, to support a hands-on, operationally focused investment model.
North Haven VIII continues the firm's long-standing focus on U.S.-based businesses in sectors such as industrials, business services, healthcare, and consumer.
Black Lion Leads $8B All-Cash Bid for Citgo Parent PDV Holding
Black Lion Capital Advisors has submitted an $8 billion all-cash offer to acquire PDV Holding, the U.S.-based parent company of Citgo Petroleum, in a court-supervised auction process aimed at repaying creditors of Venezuela’s defaulted sovereign and expropriation-related debts, according to a report by Reuters.
The bid was made through the Black Lion Citgo Group consortium, which includes institutional partners Quazar Investment, Anex Management, and Fortress Management. Beyond the $8 billion offer, the group has also committed to covering associated court and government fees, and to insulating up to $3 billion in funds—bringing total deal support to more than $11 billion.
The auction is being overseen by a Delaware court and stems from long-running efforts by creditors to seize Venezuelan assets following defaults on billions of dollars in debt and international arbitration awards. A recommendation on the winning bid is expected by 2 July, with a final court hearing scheduled for 18 August.
Black Lion’s offer significantly surpasses the $3.7 billion stalking horse bid submitted earlier by Red Tree Investments and reportedly outpaces all other known competing offers to date. These include proposals from creditors such as Gold Reserve, Rusoro Mining, and Koch Industries.
Interestingly, Black Lion did not participate in the auction’s first phase but has since emerged as a frontrunner, buoyed by the strength of its all-cash offer and institutional backing.
Judge Leonard Stark, who has presided over the multi-year litigation, has instructed the court officer to prioritize overall bid value rather than the certainty of closing—potentially favoring higher-value bids even if they come with regulatory or logistical hurdles.
A key outstanding issue is U.S. Treasury approval, as Citgo’s ownership has historically been shielded from creditor claims under special licenses issued by the Office of Foreign Assets Control (OFAC). Any transfer of control would require clarification or amendment of these restrictions.
If successful, the bid would mark one of the largest distressed asset transactions in recent U.S. legal history and a dramatic new chapter in the saga surrounding Venezuela’s overseas assets.
https://www.privateequitywire.co.uk/black-lion-leads-8bn-all-cash-bid-for-citgo-parent/
PGIM Combines Fixed Income and Private Credit to Launch $1 Trillion Credit Platform
PGIM, the investment management arm of Prudential Financial, is merging its fixed income and private credit operations to create a unified credit platform managing nearly $1 trillion in assets, according to a report by Reuters.
The consolidation is part of a broader strategic initiative led by PGIM CEO Jacques Chappuis, aimed at enhancing operational efficiency and meeting increasing client demand for integrated credit solutions across public and private markets.
The newly formed platform will be led by John Vibert, formerly head of PGIM Fixed Income. Matt Douglass, who currently oversees private credit, will continue in his role and report directly to Vibert.
PGIM’s decision reflects a growing trend among large asset managers to streamline investment capabilities in order to scale effectively and compete in a crowded market for alternative credit. The integrated platform is expected to offer investors greater flexibility and access to diversified credit exposures in both liquid and illiquid markets.
In a parallel move, PGIM is also merging its multi-asset and quantitative solutions divisions, which will now be led by Phil Waldeck, previously head of multi-asset strategies.
With this restructuring, PGIM aims to enhance its agility and alignment with client preferences as global investors increasingly seek multi-strategy credit products that offer yield, risk mitigation, and portfolio diversification.
The firm currently manages $1.39 trillion in assets across a wide range of asset classes.