Morgan Stanley is selling the wealth management arm of Eaton Vance, which it acquired last year, in two separate deals.
Canada’s CI Financial, which entered the U.S. wealth management space in 2020, is buying Eaton Vance WaterOak Advisors, formerly Eaton Vance Investment Counsel of Boston, CI says. That unit oversaw around $11.4 billion in assets for families, endowments, foundations and other institutions as of the end of February, according to CI.
The acquisition is expected to boost CI’s U.S. assets to around $133 billion, according to the firm. The companies didn’t disclose the financial terms of the deal, which is scheduled to close in the fourth quarter.
Meanwhile, private equity-backed advisory firm Pathstone is acquiring the Winter Park, Florida-based office of Eaton Vance WaterOak Advisors, Pathstone says.
Eaton Vance Investment Counsel, a subsidiary of Eaton Vance, had acquired WaterOak in November 2020, according to Pathstone, which is institutionally backed by Lovell Minnick Partners.
The Florida WaterOak unit oversees around $3 billion in assets, the company says. The companies also didn’t disclose the financial terms of the deal.
The acquisition is expected to bring Pathstone's total assets under advisement to over $35 billion, according to the firm.
Morgan Stanley acquired Eaton Vance in March for around $7 billion, in a bid to bolster Morgan Stanley’s client assets across the bank’s wealth management and investment management business lines, as reported. The deal was meant to fill product gaps in the product offerings at Morgan Stanley Investment Management, with investment solutions from Eaton Vance affiliate Parametric Portfolio Associates and environmental, social and governance offerings through Calvert Research and Management. The deal was also meant to boost scale and distribution for Morgan Stanley and provide $150 million in cost savings through a 4% reduction in expenses at MSIM and Eaton Vance.
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