Auerbach Grayson & Company, a New York based brokerage firm specializing in global trade execution and exclusive in-depth research for U.S. institutional investors, announced today that it has sold a minority stake to Morgan Stanley (NYSE: MS). Financial terms of the transaction were not disclosed.
Following the transaction, Auerbach Grayson will become a Morgan Stanley executing broker in certain emerging and frontier markets, particularly in markets where Morgan Stanley has no local presence.
"We are excited to be providing Morgan Stanley with access to our network of local brokers and view this as a critical step in putting more emerging and frontier markets on the investment map," said David Grayson , Managing Director and co-founder at Auerbach Grayson.
Auerbach Grayson built its global coverage network by establishing partnerships with local and regional brokers and banks in 130 markets worldwide with on-the-ground analysts in every region. The firm provides U.S. institutional investors with trade execution and in-depth local equity research from its local partners. Upon request, Morgan Stanley will direct interested clients to Auerbach Grayson.
"We are delighted to have made this investment and look forward to working with Auerbach Grayson to address opportunities in emerging and frontier markets," said Gary Offner , a Managing Director in Morgan Stanley's Institutional Equity division.
Lazard Middle Market served as financial advisor to Auerbach Grayson. Auerbach Grayson will continue to remain an independent entity following Morgan Stanley's investment.
About Auerbach Grayson founded in 1993 in New York City by Jonathan Auerbach and David Grayson, Auerbach Grayson offers a full range of global in-depth research, trade execution and settlement services in equities, derivatives and fixed-income instruments to U.S. institutional clients through its network of local broking partners in 130 countries. The firm also provides and implements hedging and arbitrage strategies. Auerbach Grayson is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).
Morgan Stanley is a global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,200 offices in 43 countries.