This past January, the company exceeded its original $750-million target for Mesa West Real Estate Income Fund IV LP, reaching a hard cap of $900 million. It marked the third time in a row that Mesa West had exceeded the fundraising goal for one of its closed-end debt vehicles. “Our investors understand that they can often achieve better going-in yield and

average cash-on-cash returns by lending on high quality assets than they can by buying them, while at the same time being in the most senior position of the capital stack, which is especially important in today's low cap rate environment,” principal Ryan Krauch said at the time.

The acquisition by MSIM is subject to customary closing conditions. It's expected to close in the fourth quarter.

NEW YORK CITY—Morgan Stanley Investment Management said Friday it would acquire Mesa West Capital LLC; deal terms were not disclosed. Los Angeles-based Mesa West will add its commercial real estate credit platform, with $5 billion in gross assets under management, to MSIM's existing investment strategies and product offerings across real assets and private credit.

Post-acquisition, Mesa West will retain its name and brand, operating as a separate business unit within MSIM's real assets group, which currently has $47 billion in client AUM. Mesa West's current senior management team, led by co-founders Jeff Friedman and Mark Zytko, will continue running the business on a day-to-day basis.

In a statement citing their two-decade relationship with John Klopp, MSIM's global head of real assets, and his team, Friedman and Zytko call MSIM “the ideal long-term strategic partner for Mesa West. Its strong commitment to real estate and deep global relationships and resources will help us continue to provide the best solutions and investment performance for our investors and long-term opportunities for our team” as the group continues “our focused strategies in the growing private real estate debt market.”

Friedman and Zytko founded Mesa West in 2004. It provides non-recourse first mortgage and mezzanine financing across property types, with loan sizes ranging from $20 million to $300 million.

This past January, the company exceeded its original $750-million target for Mesa West Real Estate Income Fund IV LP, reaching a hard cap of $900 million. It marked the third time in a row that Mesa West had exceeded the fundraising goal for one of its closed-end debt vehicles. “Our investors understand that they can often achieve better going-in yield and

average cash-on-cash returns by lending on high quality assets than they can by buying them, while at the same time being in the most senior position of the capital stack, which is especially important in today's low cap rate environment,” principal Ryan Krauch said at the time.

The acquisition by MSIM is subject to customary closing conditions. It's expected to close in the fourth quarter.