Lansdowne Partners Sale

London Hedge Fund Lansdowne Partners to Exit Morgan Stanley’s Portfolio

According to people familiar with the matter, a leading investment firm Morgan Stanley is planning to sell its 19 percent stake in the $17.5 billion London-based hedge fund Lansdowne Partners LLP.
The attempted sale adds Morgan Stanley to a wave of banks including J.P. Morgan Chase & Co. that bought into hedge funds before the financial crisis and have been backing away because of regulatory pressure to simplify their businesses. New limits on ownership of relatively risky assets have played a role as well, in some cases.
Morgan Stanley bankers have narrowed the list of potential buyers after earlier approaching a larger group to determine their level of interest in a piece of the hedge-fund firm, said people familiar with the matter. The smaller group includes Boston firm Affiliated Managers Group Inc. ; Foundation Capital Partners, of Greenwich, Conn.; and Neuberger Berman’s Dyal Capital, some of the people said.
One person estimated the stake could be worth as much as several hundred million dollars. UBS AG is advising Lansdowne, which bets on and against stocks and is one of Europe’s larger hedge-fund firms. It isn’t clear whether any deal will materialize. The Lansdowne stake doesn’t give Morgan Stanley a seat on the firm’s board or management committee, according to a regulatory filing.
Source: Wall Street Journal

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