(Morgan Stanley) March 28, 2012 – Morgan Stanley Global Private Equity has formed a strategic partnership with OSF Merchant Banking to pursue investment opportunities in Brazil. Based in São Paulo, OSF is a fund manager that offers international and local qualified investors customized alternative investment advice.

“Brazil has entered a cycle of abundant opportunity and unprecedented capital flow. Private equity firms are now presented with the challenge of identifying and structuring investments in a very competitive environment that does not typically rely on leverage as a fundamental piece in transaction finance,” said Hans J. Apostel, a founding partner of OSF and head of its investment committee. “We are delighted to be working with the Morgan Stanley Global Private Equity team and expect their focus on operational improvements will make them well-suited for investing in Brazil.”

“OSF Merchant Banking and Morgan Stanley Global Private Equity together will look to identify companies with great growth potential and sustainable superior operating margins in order to provide risk-adjusted returns to our investors,” says Dr. Thomas Jetter, a founding partner of OSF and member of its investment committee. “Brazil has become a natural landing point for globally active private equity funds that are looking to allocate capital to the most attractive growth markets.”

“We are excited to be partnering with OSF Merchant Banking as we explore investment opportunities in Brazil,” said Alan Jones, Head of Morgan Stanley Global Private Equity. “OSF has assembled a unique team of highly talented dealmakers and operating partners with both international private equity expertise and local market knowledge. The OSF organization and their approach to private equity investing are remarkably similar to ours, and we look forward to combining the resources and experience of both organizations.”

About OSF Merchant Banking
OSF Merchant Banking is a São Paulo-based financial services firm focused on the identification and provision of tailor-made financial and strategic partners for international companies entering Brazil. Additionally, OSF advises investors on complex cross-border issues and investment opportunities. The firm was founded by investment banking and private equity veterans Hans J. Apostel and Dr. Thomas Jetter alongside distinct operating partners with strong international CEO background and Brazil expertise. For further information about OSF Merchant Banking, please visit www.osfmb.com.

About Morgan Stanley Global Private Equity
Morgan Stanley Global Private Equity, part of Morgan Stanley Investment Management, makes private equity and equity-related investments on a global basis. Morgan Stanley Global Private Equity utilizes Morgan Stanley’s vast resources, including the Firm’s global franchise and relationships with leading corporate management teams and financial sponsors, to source attractive opportunities for its investment funds. Morgan Stanley’s roots in private equity investing date back to 1985 with Morgan Stanley Capital Partners private equity funds. To date, Morgan Stanley Global Private Equity and its affiliated funds have invested over $8 billion of equity across a broad spectrum of industries. For further information about Morgan Stanley Global Private Equity, please visit www.morganstanley.com/privateequity.

About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,300 offices in 43 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.