Morgan Stanley's Hedge Fund Shopping Spree Not Over

Oct 31 2006 | 11:29am ET

Just a day after agreeing to pay about $300 million for about 20% of New York-based hedge fund Avenue Capital Partners, Morgan Stanley consummated its long-running courtship of FrontPoint Partners.

The Wall Street giant confirmed today that is has agreed to acquire FrontPoint Partners for an undisclosed sum, though some insiders say Morgan Stanley is shelling out about $400 million for the $5.7 billion Greenwich, Conn.-based firm. The two sides have been talking about an acquisition for about a year.

FrontPoint is headed by former Morgan Stanley CFO Philip Duff, and features several other Morgan alums among its staff. In addition, the man charged by Morgan CEO John Mack with building the Wall Street giant’s alternatives business, Stuart Bohart, formerly worked at FrontPoint.

FrontPoint has $5.5 billion in assets under management as of October 1, 2006. The transaction is expected to close in December 2006.


In Depth

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

How To Generate 6% Yield In A Volatile World

May 22 2015 | 6:41am ET

Private credit comes in many different flavors, all with the common themes of over...

 

Editor's Note