The Real Deal Los Angeles

Morgan Stanley buys Mesa West

It agreed to purchase the LA-based company with $5B in assets under management
September 29, 2017 06:00PM

James Gorman of Morgan Stanley (Wikicommons, usa.sae.edu)

Morgan Stanley has agreed to buy Los Angeles-based commercial real estate debt fund manager Mesa West Capital, the firm announced on Friday. Terms of the deal were not disclosed.

Morgan Stanley is acquiring 100 percent of the company, which has $5 billion in assets under management, according to Pensions & Investments. Mesa West will remain in L.A. and keep its name, while operating as a separate business within Mogan Stanley’s real assets group.

Jeff Friedman and Mark Zytko, Mesa West co-founders and principals, will continue to manage Mesa West.

The acquisition will allow Morgan Stanley’s investment management wing to offer real estate credit. Previously, the bulk of its offerings were equity strategies.

Morgan Stanley’s investment management business had $435 billion in assets under management as of June 30 and represents about 7 percent of Morgan Stanley’s overall revenue. [P&I]Hannah Miet