Monday, 22 December 2014
Last updated 8 hours ago
Nov 9 2010 | 12:33pm ET
Morgan Stanley was loathe to take a loss on its sale of a majority stake in FrontPoint Partners to the firm's management, but that's exactly what the bank is doing.
Morgan Stanley said it expected to take a $70 million pre-tax loss on the FrontPoint spin-off, or 17.5% of the $400 million it paid for the $7 billion firm in 2006. The firm is retaining a stake in the hedge fund, giving it a piece of FrontPoint's profits as it seeks to recoup its investment over the next five years.
Terms of the deal were not disclosed, but the management buyout is expected to be completed by the end of the year.
Morgan Stanley also said it planned to "repatriate" the more than $300 million of seed capital it still has invested with Greenwich, Conn.-based FrontPoint.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.