Morgan Stanley Reaps $148B in Wealth Assets From IPO Boom
(Bloomberg) — Morgan Stanley’s IPO banks aren’t the only ones benefiting from the frenzy of companies going public in recent weeks.
The bank said it pulled in $148 billion in net new assets in the second quarter, more than half of which was tied to IPOs. press release Wednesday.
SpaceX broke the record List It turned out to be a field day for Morgan Stanley and his Wall Street friends, who helped make it public earlier this year. Elon Musk’s position and artificial intelligence collection agreed A $500 million payment to vendors, or about 0.67% of the $75 billion IPO haul, to pay traders. Even at that small size, it’s still one of the biggest paying events on Wall Street.
As the lead banks, Goldman Sachs Group Inc. and Morgan Stanley took home the largest payout pool, generating about $100 million each.
Read more: Morgan Stanley joins Wall Street rivals in stock-trading bonanza
But Morgan Stanley’s win in the wealth management space is a sign of how sustainable the wealth from technology IPOs can be for banks. Founders and employees with large stakes in companies often look for ways to invest their immediate wealth.
Morgan Stanley Chief Financial Officer Sharon Yeshaya said the bank is committed to helping early-stage companies build long-term relationships with companies and their employees.
“In terms of our pipeline, we have about 70% of the top 100 unicorns by market cap,” Yeshaya said on the earnings call. “So we’ve spent a lot of time thinking about how we can serve some of these early-stage companies.”
