Morgan Stanley CEO James Gorman has had a busy year, acquiring both E-Trade and Eaton Vance. The move brings the New York-based company assets under management to $1.2 trillion and revenue to $5 billion as the asset management space continues a consolidation trend that is set to keep rolling. “With valuations at historical lows it is no surprise we are seeing more chatter in asset management about M&A.”Consolidation in the asset management space is due, according to James Angel, an associate professor at the Georgetown University McDonough School of Business, who says it’s typical for mature industries to seek economies of scale and scope. “Eaton Vance is a perfect fit for Morgan Stanley,” Gorman said in a press release. Morgan Stanley is already the biggest distributor of Eaton Vance funds, Gorman says.

Source: Forbes October 08, 2020 20:03 UTC