Morgan Stanley Private Equity, the buyout arm of the US bank, has taken a minority stake in an Austrian steel manufacturer for an undisclosed sum in what is the group's first acquisition in Europe since re-entering the buyout market last year.

Morgan Stanley Private Equity acquired a stake of about 35% in Breitenfeld from the group's long-term majority owner Rudolf Jarak, who recently acquired the stake from German buyout firm DZ Equity Partners. Morgan Stanley's partner BAST Investment has bought a stake of less than 5% in Breitenfeld.