(Updates to add sale of Avenue and context)
Feb 8 (Reuters) - Morgan Stanley is looking to sell its stake in both London-based Lansdowne Partners LLP and New York-based Avenue Capital Group, a source told Reuters on Sunday.
Last February, speaking at the Credit Suisse Financials Conference, Greg Fleming, president of Morgan Stanley Investment Management, said the firm was winding down its investments in hedge funds and that it was not part of Morgan Stanley’s long term strategy.
The source spoke on condition of anonymity because the talks are confidential.
Morgan Stanley’s bankers have narrowed down a list of potential buyers interested in its 19 percent stake in Lansdowne, including Boston-based Affiliated Managers Group Inc, Greenwich, Connecticut-based Foundation Capital Partners and Neuberger Berman’s Dyal Capital, according to The Wall Street Journal.
The newspaper was the first to report the potential sale of Lansdowne on Sunday. It cited people familiar with the matter. (on.wsj.com/1zz3pbS)
The sale of Lansdowne, which has $17.5 billion in assets under management, could be worth several hundred million dollars. UBS AG is advising Lansdowne, according to the report.
J.P. Morgan and Highbridge Capital Management LLC, the hedge fund and private equity firm it owns, are also in discussions about the bank selling part of Highbridge to its management team, but those discussions are “fluid,” according to the report. (Reporting by Lauren LaCapra, Jessica Toonkel; Editing by Paul Simao and Alan Crosby)