NEW YORK–(BUSINESS WIRE)–Morgan Stanley Investment Management (MSIM) announced today that it has formed a strategic alliance with Avenue Capital Group, a leading New York-based investment manager with approximately $12 billion in assets under management. Under the proposed agreement, Morgan Stanley will acquire a minority interest in Avenue, and Avenue will remain an independent firm led by its current management team. Avenue will invest 100 percent of the proceeds received from this transaction into funds managed by Avenue.
“This alliance with one of the world’s leading firms in the distressed securities market is another key step in our strategy to build a more robust alternative investments capability,†said Owen Thomas, President and Chief Operating Officer of MSIM. “It is an attractive alliance for both firms. Avenue offers specialized expertise in a key alternative investment category, while MSIM provides Avenue with access to an extensive global presence, broad client reach and numerous new investment opportunities. As we continue to execute our strategy for building our asset management franchise, we will be exploring similar alliances that can bring industry leading investment teams and products to our clients.â€Â
