According to industry sources the fund is targeting final close in the second half of 2015.
Morgan Stanley announced in May 2008 that its first fund, Morgan Stanley Infrastructure Partners I LP, had successfully closed with $4.0 billion of equity commitments, exceeding the firm's initial target of $2.5 billion.
The fund raised its capital globally in North America, Europe, Australia, the Middle East and Asia. Investors included major pension funds, insurance companies, high net worth individuals as well as Morgan Stanley and its employees.
Morgan Stanley Infrastructure, which has teams in North America, Europe and Asia, invests in assets that provide public goods and services in sectors such as transportation, communications, energy and utilities, according to its website.
The infrastructure team has experienced turnover since raising its first fund. Sadek Wahba, its chief investment officer and global head, left the firm in late 2011.
Morgan Stanley named Markus Hottenrott, one of three co-heads of the infrastructure business, to manage the unit on his own in 2013. Anne Valentine Andrews, one of the team's co-heads, left the firm, while the other co-head, Jim Wilmott, stayed to run the Europe business.
Morgan Stanley also named Chris Koski as global head of investment strategy. Koski, who was global head of infrastructure at the Abu Dhabi Investment Authority, joined the bank's infrastructure team also in 2013.