FrontPoint Partners, which was acquired in 2006 by Morgan Stanley, has restructured its relationship with Morgan Stanley whereby its portfolio managers and senior management, including co-chief executive officers Daniel Waters and Michael Kelly, will collectively own a majority of the equity ownership interests in FrontPoint.
Under the terms of the agreement, Morgan Stanley Investment Management will retain a minority equity stake in FrontPoint. No other terms were disclosed.
The restructuring is subject to customary closing conditions, and is expected to close in the fourth quarter of 2010.
"During the last four years we have continued to expand our investment capabilities, assets under management and investor base," says Waters. "We have worked very closely with MSIM’s senior management on restructuring the FrontPoint relationship with Morgan Stanley to ensure that FrontPoint is best positioned to continue to deliver returns for our investors."
Kelly adds: "As we enter our second decade, FrontPoint will remain focused on delivering absolute returns with wide-ranging and attractive investment opportunities for our investors. We will continue to add investment teams that complement our existing strategies."
FrontPoint, which was founded in 2000, is an alternatives asset management firm focused on providing single strategy and multi-strategy absolute return investments to institutional and high net worth investors and their advisers.