Tuesday, 4 August 2015
Last updated 3 hours ago
Oct 30 2006 | 10:59am ET
Morgan Stanley Investment Management has bought a minority stake in New York-based hedge fund Avenue Capital Group. MSIM will reportedly pay $280 million for 18% of Avenue.
Under the arrangement with MSIM, Avenue will remain an independent firm and continue to be led by its current management team, which includes founder Marc Lasry, formerly a manager at Amroc Investments and Acadia Partners.
MSIM is just the latest in a series of large investment banks to beef up their asset management units through acquisitions of hedge fund firms.
Earlier this month, Merrill Lynch took a small stake in alternative asset manager DiMaio Ahmad Capital, which manages approximately $2 billion.
While the trend for big name banks to take ownership positions in hedge fund firms continues, some experts say that investors are paying the price. Speaking on a panel at the MARHedge Conference in Bermuda last week, one portfolio manager who runs a $1.3 billion family office said that this type of deal, “is wonderful for the hedge funds, but bad for
Avenue Capital, which specializes in buying distressed debt, has approximately $12 billion in assets under management.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…