Morgan Stanley CEO Reports High Bar for Wealth Management Acquisitions

Morgan Stanley CEO Ted Pick stated that the firm is actively considering acquisition opportunities, particularly smaller, complementary targets within wealth or investment management, but maintains a very high bar for any deals. He emphasized that acquisitions must align closely with the firm's strategy to raise, manage, and allocate capital for clients, and are not pursued for their own sake. Pick highlighted Morgan Stanley's strong track record of integration but also expressed humility about the challenges involved, noting mixed results in the broader investment management roll-up sector. The firm's wealth management division continues to grow, with assets under management reaching $8.2 trillion and $59.2 billion in net new assets inflows, partly driven by services related to employee ownership stakes. This cautious approach to acquisitions follows the transformative deals under Pick's predecessor, which significantly expanded Morgan Stanley's wealth management business. Other industry leaders, such as Goldman Sachs CEO David Solomon, share a similar openness to acquisitions that meet strict strategic and financial criteria.