Morgan Stanley Targets $1 Billion for Energy-Transition Bets

Morgan Stanley’s asset-management arm plans to raise at least $1 billion for a new fund dedicated to energy-transition bets, according to people with knowledge of the matter.

The vehicle, which will be overseen by Morgan Stanley Investment Management’s infrastructure team, will seek to deliver private equity-like returns, said the people, who asked not to be identified discussing confidential information.

A Morgan Stanley spokeswoman declined to comment.

Firms across Wall Street have increasingly sought to back companies that aim to combat climate change, in part because of heightened investor interest in the sector.

TPG Inc. recently hired Scott Lebovitz, ...