FIG teams seeking asset management specialists

Morgan Stanley has begun offering investment banking advice to hedge funds and asset managers. Recruiters say other banks are hiring with a view to doing the same.

"There is demand for FIG bankers with strong knowledge of the alternative and real money community," says Tim Sheffield, managing director of financial services-focused search firm Sheffield Haworth. "Traditionally banks were focused on executing hedge fund business, then came prime services and prime brokerage. Now it's the turn of the advisory business in a consolidating market."

Morgan Stanley has made Huw van Steenis, its co-head of banking research, head of a new division offering advice and financing to hedge funds, asset managers and private banks, reports Financial News Online.

Search consultants say other banks have also been building up in the area. Credit Suisse recently hired Dominic Fry from Hawkpoint to work on asset management and hedge fund transactions, while UBS has just recruited Morgan Stanley's Steve Niemczyk as global head of asset management coverage in its financial institutions group (FIG).

Merger and acquisition activity in the global asset management industry reached record highs in the first half of this year according to a report from Putnam Lovell.

Morgan Stanley is expected to move to replace Niemczyk: "They've got a very big hole," says one search consultant. "Most banks are hiring asset management expertise to FIG teams at all levels," he adds.