Morgan Stanley Deal Signals Race for Scale at Fund Managers

  • Wall Street bank agrees to acquire Eaton Vance for $7 billion
  • Value of asset, wealth-management deals rose 47% in first half

    

Photographer: Michael Nagle/Bloomberg
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Morgan Stanley’s $7 billion purchase of Eaton Vance Corp. marks the latest wager that finding a big partner is critical to survival in the asset-management industry.

With fees squeezed by cutthroat competition and a shift to passive fund management, firms are racing to expand their reach. Activist investors are also on the prowl, which could lead to more deals in the near future.