Morgan Stanley enhances investment capabilities via Eaton Vance deal

Morgan Stanley has agreed to acquire investment management group Eaton Vance, which has over $500 billion in assets under management (AuM), for an equity value of $7 billion.

The deal, which is expected to close during the second quarter of 2021, will boost Morgan Stanley’s AuM to $1.2 trillion and over $5 billion of combined revenues.

The combination will enhance client opportunities, by bringing Eaton Vance’s leading US retail distribution together with Morgan Stanley Investment Management’s international distribution, Morgan Stanley said.

“Eaton Vance brings strong brand recognition and high quality complementary platforms in key secular growth areas, providing numerous incremental opportunities to increase the reach of our asset management franchise and our value proposition for clients,” said Dan Simkowitz, head of Morgan Stanley Investment Management.

“These two businesses have limited overlap and are combining from positions of strength to create one of the leading asset managers in the world,” he added.