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Eaton Vance Brings Morgan Stanley’s Wealth, Investment Mgmt Client Assets to $4.4T

October 9, 2020

Morgan Stanley is acquiring Eaton Vance, according to news reports.          

The companies have reached an agreement on the deal, valued at approximately $7 billion and expected to close in the second quarter of 2021, according to FA-IQ sister publication FundFire. 

The planned acquisition will boost Morgan Stanley’s client assets across the firm’s wealth management and investment management business lines to $4.4 trillion, Morgan Stanley chairman and CEO James Gorman says in a statement cited by FundFire.

“Eaton Vance is a perfect fit for Morgan Stanley,” Gorman says in the statement. “This transaction further advances our strategic transformation by continuing to add more fee-based revenues to complement our world-class investment banking and institutional securities franchise.”

The deal is meant to fill product gaps in the product offerings at Morgan Stanley Investment Management, with investment solutions from Eaton Vance affiliate Parametric Portfolio Associates and environmental, social and governance offerings through Calvert Research and Management, the publication writes. The acquisition will also let Morgan Stanley boost scale and distribution and provide $150 million in cost savings through a 4% reduction in expenses at MSIM and Eaton Vance, Morgan Stanley says, according to FundFire.

“Bringing Eaton Vance’s leading brands and capabilities under Morgan Stanley creates a uniquely powerful set of investment solutions to serve both institutional and retail clients in the U.S. and internationally,” Thomas Faust Jr., CEO of Eaton Vance, says in a statement cited by the publication.

Morgan Stanley is paying half in cash and half in Morgan Stanley common stock, FundFire writes. 

Earlier this month, Morgan Stanley concluded its $13 billion acquisition of online brokerage giant E*Trade after getting the Federal Reserve Board’s approval for the deal in late September. 

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By Alex Padalka
  • To read the FundFire article cited in this story, click here if you have a paid subscription.
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Tags:  Finding and winning new clients , Investment strategies , Eaton Vance , Morgan Stanley , Morgan Stanley Investment Management , Parametric Portfolio Associates

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