Morgan Stanley has paid around $300 million for almost 20 per cent stake in Avenue Capital Group, a New York-based distressed debt hedge fun...

Morgan Stanley has paid around $300 million for almost 20 per cent stake in Avenue Capital Group, a New York-based distressed debt hedge fund manager. Avenue will remain independent and will continue to be led by the current management. The deal will give the hedge fund manager access to the bank’s wide client base and new investment opportunities, said Morgan. Avenue was founded in 1995 and has 240 staff and offices in 11 locations, including London. Morgan is also expected this week to pay between $300 million and $400 million, depending upon performance, for FrontPoint Partners, a hedge fund group which was founded in 2000 with $5.5 billion under management.