Third time’s the charm as Morgan Stanley announced its third hedge fund deal this week. The Wall Street behemoth pinched a minority stake in London-based hedge fund Lansdowne Partners as the firm moves to rebuild its investment management business, the New York Post reports.
Morgan is paying $300 million for a 19% stake in Lansdowne, which manages over $12 billion in assets. The firm bought hedge fund FrontPoint Partners and another stake in Avenue Capital Group earlier this week.
Experts say there large brokerage firms are likely to acquire more hedge fund firms because of the lucrative fees from alternative assets. Hedge fund managers are also keen on the idea as it gives them more prestige and provides ways for them to increase the size of their funds and fees.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.