The investment bank's involvement, detailed in documents filed with UK Companies House, centers on the purchase of Class A loan notes from Earthave Bridging, a firm controlled by Raja that fueled the mortgage business. While Morgan Stanley successfully recouped its principal and interest, the deal served as a precursor to a wider institutional rush into the opaque $3-trillion private credit market, drawing in firms like HSBC, Barclays, and Wells Fargo.

Following the February collapse, the scale of the fallout has triggered intense scrutiny from UK regulators. Britain’s Financial Conduct Authority launched an investigation into MFS in March, while the Financial Reporting Council is probing the auditors associated with Raja’s network. Insolvency administrators at AlixPartners are currently managing the recovery of £1.8 billion owed to creditors, as court filings indicate that Raja, who faces allegations of fund misappropriation, has reportedly relocated to Dubai.