Morgan Stanley pushes a cross-division push to win more business from RIAs and family offices

Morgan Stanley is trying to make it easier for independent investment advisers to access a broader set of its capabilities by knitting together divisions that have historically operated more independently, with a specific focus on structured products and equity-linked strategies sold through the RIA channel. In a report carried by Wealth Management, executives described a cross-division initiative branded as an “Integrated Firm for RIAs and Family Offices,” designed to reduce the friction advisors face when assembling solutions from separate parts of the bank. The effort, the executives said, brings together investment management resources, institutional equity strategy teams, and distribution aimed at intermediary firms and their clients. Morgan Stanley executives said the initiative is already producing results. According to Lou Mandia, head of RIA strategy and distribution for the institutional equity division, the firm has raised nearly $1.5 billion across its structured product suite from the RIA market since the program launched. Mandia tied that momentum to a strategy of combining existing products and capabilities into more tailored offerings for advisors. A key example cited in the report is the use of options and other equity-linked structures for clients with concentrated stock positions, particularly those looking to hedge downside exposure and potentially generate liquidity in a tax-aware way. The institutional equity team described this as an area where packaged solutions can better match adviser use cases, such as managing risk from single-name holdings and addressing client cash-flow needs. The investment management side of the initiative matters because Morgan Stanley Investment Management manages roughly $2 trillion in assets, and includes branded partners such as Parametric and Eaton Vance, according to the executives quoted. Morgan Stanley Investment Management chief distribution leadership on the project said the firm is taking a “broad, compelling suite of products” and then customizing it further for advisors and their clients, drawing from the investment management platform and the equity-derivatives capabilities that are typically marketed separately. Dave Michaud, co-head of North America intermediary distribution for the investment management division, described the approach as a way to widen the set of solutions advisors can use, rather than forcing them to piece together strategies across separate institutional and asset-management teams. The report also discussed that the firm may combine elements such as variable-prepaid forward contracts, which are typically used as a financing or liquidity tool linked to equity performance, with other equity strategies depending on client circumstances, though it did not provide additional terms about specific offerings. Beyond product design, the push reflects a broader competitive pressure in U.S. wealth management. Independent RIAs and multi-family offices have grown in influence over the past decade, and they often demand solutions that can be deployed quickly with clear risk framing, especially when tax considerations and concentrated positions come into play. In that environment, firms like Morgan Stanley try to win not only on portfolio management but also on the ability to deliver “wrapper” solutions, such as structured products, that advisers can match to client needs. Still, some details remain unclear. The Wealth Management report did not break down the nearly $1.5 billion figure by product type, account size, or geography, nor did it specify the exact timeline for when the initiative began or how many RIA clients or firms have adopted solutions through the integrated approach. It also did not disclose internal sales targets, revenue impact, or whether any parts of the program are being scaled to additional distribution teams.

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