Second division wealth fund ‘up for sale’

SPECULATION is mounting that Morgan Stanley is close to selling a British wealth management unit to private equity firm Bridgepoint.Bridgepoint is in exclusive talks to buy Quilter, a wealth manager catering to clients not rich enough to form part of Morgan Stanley’s UK private banking operation, which focuses on the super rich, according to reports.

Quilter, with £7.6bn under management, takes private clients prepared to invest at least £25,000, while international private banking businesses such as Morgan Stanley’s typically cater to clients worth millions.

Morgan Stanley first sold Quilter to rival Citi in 2006, before coming to own it again after buying a majority stake in Smith Barney from Citi.

US banking groups like Morgan Stanley operate private banks in Europe that concentrate on the super rich, while running wealth management brokerage businesses in their home market for the so-called mass affluent.

Quilter, Morgan Stanley and Bridgepoint all declined to comment yesterday.

Morgan Stanley, which was founded in 1935, advises clients on strategic transactions, and provides opportunities for individual and institutional investors.