Morgan Stanley Investment Management, the asset management unit of Morgan Stanley, said its first dedicated corporate mezzanine fund has closed with $956m (€728m) in capital from investors as it seeks to capitalise on an expected dearth of refinancing activity.

The fund, Morgan Stanley Credit Partners, or MS Credit, invests primarily in fixed income securities issued by middle market companies in conjunction with leveraged buyouts, debt refinancings, acquisitions and recapitalisations. To date, the fund has invested more than $160m in five companies.