Hey there, finance enthusiasts! Buckle up because there’s some exciting news shaking up Wall Street. Nicole Musicco, a familiar name in the investment world, is making a grand return to the credit scene after a whirlwind 18-month stint at Calpers. And she’s not coming back alone—she’s partnering with Morgan Stanley’s very own Peter Ma to launch a massive new venture called Square Nine Capital.
With plans to raise over $1 billion, this duo is gearing up to shake things up in the world of mid-sized company lending. Curious? Let’s dive into the details of this blockbuster move, what it means for the credit market, and why it’s got everyone talking!
A Fresh Start with Square Nine Capital
So, what’s the buzz all about? Nicole Musicco, who once helmed investments at the California Public Employees’ Retirement System (Calpers), is stepping back into the spotlight with a brand-new credit fund. After leaving Calpers over a year ago, she’s now teamed up with Peter Ma, a seasoned pro from Morgan Stanley, to create Square Nine Capital. This isn’t just a small side project—their goal is to build a platform worth more than $1 billion, focusing on lending opportunities for mid-sized businesses. Talk about a power move!
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The fund is set to launch in early June, and insiders (who prefer to stay anonymous since the details aren’t fully public yet) say it’ll be a hub for “opportunistic lending.” That’s a fancy way of saying they’re looking to offer flexible financing to companies that need it most. And here’s the kicker: Musicco and Ma won’t be alone—they’re bringing along a crew of Morgan Stanley execs to make this dream a reality. Sounds like a recipe for something big, right?
Who’s Nicole Musicco? A Quick Recap
If you’re wondering who Nicole Musicco is, let me give you the rundown. She’s no newbie to the finance game. Before this exciting venture, she spent a whirlwind 18 months as the Chief Investment Officer at Calpers, the biggest pension fund in the U.S. Her exit from that role raised eyebrows across the industry—after all, Calpers isn’t exactly a place people leave lightly. But Musicco’s departure wasn’t the end of her story; it was just a plot twist.
Before Calpers, she had an impressive 16-year run at the Ontario Teachers’ Pension Plan, where she honed her skills in managing massive investment portfolios. After that, she spent a year at the Investment Management Corporation of Ontario and even had a stint with RedBird Capital Partners. With a resume like that, it’s no surprise she’s ready to jump back into the credit market with both feet. When I reached out for a comment, Musicco kept things hush-hush, but her track record speaks volumes—she’s a force to be reckoned with!
Meet Peter Ma: The Morgan Stanley Maestro
Now, let’s talk about her partner-in-crime, Peter Ma. He’s been a key player in Morgan Stanley’s private credit division for about four years, bringing a wealth of experience to the table. Before that, he spent nearly a decade at Colbeck Capital Management, a firm known for its sharp focus on private credit. If Musicco’s the strategist with a pension fund pedigree, Ma’s the credit market wizard who knows how to make deals happen. Together, they’re like the dynamic duo of finance—ready to take on the world, one loan at a time.
Ma’s decision to join Musicco is a big deal, especially since he’s leaving a comfy gig at Morgan Stanley. When I tried to get a word from him or a Morgan Stanley rep, they stayed tight-lipped. But that silence only adds to the intrigue—clearly, something huge is brewing behind the scenes!
What’s Square Nine Capital All About?
Okay, so what’s the game plan for Square Nine Capital? From what we’ve gathered, this fund is all about jumping into the gaps where mid-sized companies need help the most. These businesses often struggle to secure flexible financing from traditional sources, and that’s where Musicco and Ma come in. Their focus on “opportunistic lending” means they’re ready to offer creative solutions—think tailored loans or quick cash injections—to keep these companies thriving.
The timing couldn’t be better. Right now, the credit market is buzzing with activity as borrowers look for ways to tweak their debt or find fresh funding options. Square Nine Capital is poised to swoop in and meet that demand, and with over $1 billion in firepower, they’ve got the muscle to make a real impact. Plus, with a team of Morgan Stanley heavyweights on board, they’ve got the expertise to back it up. This isn’t just a fund—it’s a statement!
Why This Matters: The Bigger Pictur
Let’s zoom out for a sec. Musicco and Ma aren’t the only ones jumping into the credit game lately. The market’s been heating up with new players popping up left and right. Just this month, Scott Graves, a former Ares Management bigwig, launched Lane42 Investment Partners to focus on opportunistic deals. Meanwhile, Paul Goldschmid from King Street Capital and David Cohen from Two Sigma debuted Harvey Capital Partners, targeting quirky, off-the-beaten-path investments. It’s like the credit world is throwing a party, and everyone’s RSVP-ing!
What’s driving this trend? Well, companies are feeling the pinch. Whether it’s rising interest rates or economic uncertainty, borrowers are scrambling to rethink their debt strategies. That’s creating a golden opportunity for funds like Square Nine Capital to step in with innovative financing. It’s a win-win—businesses get the cash they need, and investors like Musicco and Ma get a shot at juicy returns. Pretty smart, huh?
Musicco’s Journey: From Calpers to Credit Queen
Let’s circle back to Nicole Musicco’s story because it’s a wild ride. Her time at Calpers was short but intense—18 months as CIO is barely enough time to settle into a role that big. When she left, it sent shockwaves through the industry, especially since Calpers had already seen a string of sudden exits. The fund scrambled to find a replacement, but Musicco didn’t skip a beat. She took her decades of experience and set her sights on something new.
Her background is a goldmine of expertise. Those 16 years at Ontario Teachers’ gave her a front-row seat to managing billions in assets, while her time at RedBird Capital sharpened her private market chops. Now, with Square Nine Capital, she’s blending all that knowledge into a fresh venture that’s got Wall Street buzzing. It’s not just a comeback—it’s a glow-up!
Peter Ma’s Credit Cred: A Perfect Match
Peter Ma’s no slouch either. His four years at Morgan Stanley’s private credit arm gave him a deep dive into the world of lending, and his decade at Colbeck Capital Management cemented his reputation as a dealmaker. He’s got the kind of hands-on experience that pairs perfectly with Musicco’s big-picture vision. Together, they’re like peanut butter and jelly—different flavors, but oh-so-good together.
Ma’s move from Morgan Stanley to Square Nine Capital is a bold one. It’s not easy to leave a powerhouse like that, but it shows how much faith he has in this new project. With his credit market savvy and Morgan Stanley connections, he’s bringing serious street cred to the table.
What’s Next for Square Nine Capital?
So, what can we expect when Square Nine Capital launches in June? For starters, they’ll be hitting the ground running with that $1 billion-plus war chest. Mid-sized companies across the U.S. will likely be lining up for a piece of the action, especially those looking for flexible financing to weather today’s tricky economy. The fund’s focus on opportunistic lending means they’ll be ready to pounce on deals that others might overlook.
With Musicco’s strategic mind and Ma’s credit expertise, plus a team of Morgan Stanley pros, Square Nine Capital could quickly become a major player in the private credit space. And who knows? If this takes off, we might see them expand even further down the road. One thing’s for sure—this is a venture worth keeping an eye on!
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Why You Should Care
Even if you’re not a finance geek, this story’s got something for everyone. It’s about two powerhouse pros taking a big swing at a market that’s ripe for the picking. It’s about second chances—Musicco bouncing back from Calpers with a vengeance. And it’s about timing—launching a fund when companies need it most. Whether you’re an investor, a business owner, or just someone who loves a good comeback tale, Square Nine Capital’s debut is a storyline to follow.
So, what do you think? Will Musicco and Ma’s big bet pay off? Drop your thoughts below—I’d love to hear your take! And if you’re as pumped about this as I am, share this with your crew. The credit world’s about to get a whole lot more exciting!
