Morgan Stanley Smith Barney (MSSB), the joint venture between Morgan Stanley’s Global Wealth Management Group and Citi’s Smith Barney, will act as prime broker and custodian to Prescience Investment Groups first hedge fund.
Michael J. Liccar & Co. will act as third party administrator and RSM McGladrey as auditor.
The fund will invest in equities and bonds, through an unlevered long/short approach, and hopes to raise around USD500 million.
Morgan Stanley recently announced the expansion of its Prime Brokerage offering with the launch of new custodial services for long securities held by prime brokerage clients. The custodial services will be provided directly by Morgan Stanley Trust National Association, a U.S national chartered trust company.
The MSSB joint venture, which closed May 31, aims to save USD1.1 billion according to a presentation to investors on January 13. MSSB hopes to finalize the merger over the next two months.
Giles TurnerNews Editor