Global wealth management JV
Morgan Stanley and Citi Group have formed a new wealth management joint venture.
The two companies announced today that the joint venture, Morgan Stanley Smith Barney, was launching ahead of schedule and was the product of combining Morgan Stanley’s Global Wealth Management group with Citi Smith Barney in the US, Quilter in the UK and Smith Barney Australia retail units into a new wealth management firm.
The new brand will boast over 18,500 financial advisers worldwide.
Commenting on the launch of the joint venture company, Morgan Stanley chairman John Mack claimed it would be a clear industry leader.
Under the terms of the arrangement, Morgan Stanley and Citi will access the joint venture for retail distribution and each firm’s institutional businesses will continue to execute order flow from the joint venture.
Under the final terms of the agreement, Citi will transfer 100 per cent of its Smith Barney, Smith Barney Australia and Quilter retail units for a 49 per cent stake in the joint venture and an upfront cash payment of $2.75 billion.
Morgan Stanley will transfer 100 per cent of its Global Wealth Management business for a 51 per cent stake in the joint venture.
AUTHOR
Mike Taylor
Recommended for you
AUSIEX has announced it will acquire FIIG, a specialist fixed income provider with $4.5 billion in funds under advice.
Platinum Asset Management has announced it is in discussions with a global alternatives fund manager regarding a possible merger to create an $18 billion firm.
JP Morgan Asset Management has appointed an ETF specialist from Vanguard as it seeks to expand its ETF range.
The alternative asset manager has expanded its Singapore office with a head of Asian distribution, representing a “critical step” for the Asian business, where it is seeking to launch new offerings.
