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FrontPoint Partners Restructures Relationship with Morgan Stanley

^{Published on 2010-10-20 05:12:25 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--FrontPoint Partners LLC (aFrontPointa), which was acquired in 2006 by Morgan Stanley (NYSE: MS), today announced a restructuring of its relationship with Morgan Stanley whereby FrontPoint 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.

"We have worked very closely with MSIMa™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."

Under the terms of the agreement, Morgan Stanley Investment Management (aMSIMa) 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.

aDuring the last four years we have continued to expand our investment capabilities, assets under management and investor base,a said Mr. Waters. aWe have worked very closely with MSIMa™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.a

Added Mr. Kelly, aAs 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.a

FrontPoint Senior Portfolio Manager Steven Eisman commented, aI am especially pleased that my fellow portfolio managers support the restructuring of our relationship with Morgan Stanley, and that the FrontPoint investment culture will not change.a

About FrontPoint

FrontPoint, which was founded in 2000, is a global integrated alternatives asset management firm focused on providing single strategy and multi-strategy absolute return investments to institutional and high net worth investors and their advisors. FrontPoint integrates and supports its portfolio teams through a central infrastructure managed by an experienced business team who provide trading, risk management, compliance, legal, accounting, technology, administrative services, marketing, and back office functions. As of September 30, 2010, FrontPoint manages over $7 billion in 24 single and multi-strategy vehicles. Including investment professionals at sub-advisors the Firm has 219 employees, including 119 investment professionals.