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Morgan Stanley Next Level Fund
Morgan Stanley formed the Next Level Fund in 2021 through its Inclusive Ventures Group, with Alice Vilma appointed to lead the effort.
Morgan Stanley Next Level Fund
Morgan Stanley formed the Next Level Fund in 2021 through its Inclusive Ventures Group, with Alice Vilma appointed to lead the effort. The vehicle is structured as an early-stage venture fund that draws limited partners from prominent corporate and philanthropic institutions, including Hearst, Microsoft, and the Walton Family Foundation. The mandate targets technology companies founded and led by diverse teams, reflecting the bank's broader initiative to support underrepresented entrepreneurs across the innovation economy. The fund invests primarily at the seed and Series A stages, with initial check sizes around $250,000 to $500,000. Portfolio allocations span enterprise software, fintech, digital health, consumer goods, and media. Confirmed portfolio companies include Five to Nine, an enterprise software platform for managing workplace culture, and Goalsetter, a fintech application focused on youth financial literacy. Co-investors in these rounds have included prominent institutional venture firms alongside the Next Level Fund. The geographic focus is domestic, with deal activity concentrated in technology hubs including New York, Boston, and the Bay Area. Total capital commitments remain private, though the fund operates with a dedicated team embedded within Morgan Stanley's broader wealth and investment management division. The fund shares resources with the Morgan Stanley Inclusive Ventures Lab, an in-house accelerator that provides capital, mentorship, and office space to early-stage startups. Carla Harris, a senior client advisor at the firm, is closely associated with the strategy and serves as an advisor to portfolio companies. In October 2022, the fund participated in a $3.9 million seed round for fintech startup Goalsetter alongside Fiserv and Seae Ventures, signaling continued deployment into the firm's core thesis areas. Structurally, the Next Level Fund operates as a captive venture unit within a global investment bank rather than a standalone partnership. Unlike independent funds that raise from traditional institutional LPs, this vehicle activates strategic corporate backers and foundations willing to accept market-rate returns layered with explicit diversity mandates. The governance and carry structure flow through Morgan Stanley's legal entity, giving portfolio companies access to the bank's distribution and advisory resources but limiting the fund's independence from the parent institution's broader strategic priorities.
General information
Firm type
Asset Manager
Year founded
2021
AUM
Undisclosed
Location
Region
North America
Country
United States
City
New York
Corporate office
New York, NY, United States
Principals
Alice Vilma
Head of the Next Level Fund
Carla Harris
Senior Client Advisor
Sector focus
Frequently asked questions
Who makes investment decisions at the Next Level Fund?
Alice Vilma leads the fund as its head within Morgan Stanley's Inclusive Ventures Group. She works alongside a dedicated investment team and receives advisory input from Carla Harris, a senior client advisor at the bank who is deeply involved in the initiative. Final investment committee decisions rest with the fund's internal leadership structure inside the bank.
Where does the capital for the Next Level Fund come from?
The fund's limited partners include Hearst, Microsoft, and the Walton Family Foundation. These organizations committed capital at the fund's formation in 2021. Morgan Stanley itself also allocates balance-sheet capital to the vehicle, making it a hybrid of corporate venture and fund structure.
Does the Next Level Fund only invest in diverse founding teams?
Yes. The fund's stated mandate requires portfolio companies to be founded or led by underrepresented entrepreneurs. This includes women and people of color across all sectors the fund targets. The diversity requirement is a binding investment criterion, not a preference or aspirational target.
What stage and check size does the fund target?
The fund writes initial checks between $250,000 and $500,000 into seed and Series A rounds. It will follow on in later rounds when appropriate, though the core strategy concentrates capital at the earliest stages. Portfolio companies typically show early revenue, product-market fit, or demonstrated user growth.
How does the Next Level Fund relate to the Morgan Stanley Inclusive Ventures Lab?
The fund and the accelerator share the same parent group and strategic goals but operate as separate programs. The Inclusive Ventures Lab provides mentorship, office space, and a modest capital grant to very early-stage startups over a fixed cohort period. The Next Level Fund writes larger equity checks into companies that may or may not have participated in the lab first.
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