# Morgan Stanley Expansion Capital

Morgan Stanley Expansion Capital is a Growth Equity based in San Francisco, United States.

## Overview

- **Organization type:** Growth Equity
- **Headquarters:** San Francisco, United States
- **Region:** North America
- **Address:** San Francisco, CA, United States
- **Founded:** 2014
- **Assets under management:** Undisclosed
- **Website:** morganstanley.com
- **LinkedIn:** https://www.linkedin.com/company/morgan-stanley-expansion-capital

## Regulatory record

- **Reports private funds:** No

## About

Morgan Stanley Expansion Capital is a private equity platform founded in 1996 in New York, New York. It focuses on late-stage growth investments in sectors such as technology, healthcare, and consumer. The company pursues growth opportunities and implements a value-creation strategy through operational and financial measures.

## Sectors

- Enterprise Software
- FinTech
- Digital Health
- Cybersecurity
- AI/ML

## Offices

- New York, NY, United States
- Palo Alto, CA, United States

## People

- Pete Chung — Head of Morgan Stanley Expansion Capital
- Robert Bassman — Managing Director
- Lincoln Isetta — Managing Director

## Questions

### Who runs investment decisions at Morgan Stanley Expansion Capital?

Pete Chung leads the platform as Head of Morgan Stanley Expansion Capital. He is supported by a dedicated investment committee that operates within Morgan Stanley Investment Management but maintains a distinct process from the bank's broader principal investment groups. Chung has been with Morgan Stanley since 2001 and took the helm of Expansion Capital at its formation in 2014.

### How does Morgan Stanley Expansion Capital source deals differently from a stand-alone growth fund?

The group draws on Morgan Stanley's global investment banking network, which provides origination access across more than 40 countries. This gives the team proprietary visibility into late-stage private companies that are actively engaged with the bank on capital-markets advisory, credit, or IPO preparation — a sourcing channel that independent venture firms cannot replicate.

### Does Morgan Stanley Expansion Capital invest only in North America?

While the United States and Canada represent the core geography, the group also deploys in Europe and has a notable secondary concentration in Israel, particularly within enterprise software and cybersecurity. This footprint mirrors the global distribution of Morgan Stanley's technology banking coverage.

### Is Morgan Stanley Expansion Capital a balance-sheet vehicle or a fund?

It operates as a hybrid: capital is committed from Morgan Stanley's balance sheet and through third-party institutional investor vehicles. This dual-capital structure allows the team to retain flexibility on hold periods and position sizing without the strict deployment timelines that constrain traditional fund structures.

### Which sectors does Morgan Stanley Expansion Capital actively avoid?

The platform concentrates on technology and technology-enabled services and explicitly avoids sectors outside that mandate — including hard assets, traditional energy, materials, and early-stage biotech. Its focus is enterprise software, fintech, digital health, cybersecurity, and AI/ML infrastructure and applications.

### How does Morgan Stanley Expansion Capital handle co-investment rights alongside external GPs?

The group regularly co-invests alongside venture and growth firms that lead rounds, including firms such as Accel and Insight Partners. It does not require a lead position and will take pro-rata follow-on rights when offered, but the team evaluates each co-investment on a deal-by-deal basis rather than through a formalized syndicate program.

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Last updated: 2026-06-03T20:00:00.000Z

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