This IPO market 'requires sophisticated investors'

"The IPO market is booming, but it's not for the inexperienced investor, Morgan Stanley's co-head of global capital markets told CNBC on Thursday."

"From around the world we've got a healthy IPO pipeline, healthy amount of follow-ons and healthy placements," Raj Dhanda said on "Squawk Alley."

With the tech-heavy Nasdaq nearly at 5,000, Dhanda drew a distinction between today's IPOs and those of 15 years ago during the height of the dot-com bubble.

"Companies today go public later," he said. "They've been introduced to investors through the private-placement market often, so it's a robust and attractive market."

Read more: "The IPO market requires sophisticated investors, and today's private placement financing is much like an IPO 10 years ago in terms of the sophistication of the investors"