is in discussions to acquire investment management firm
FrontPoint Partners LLC
, which caters to alternative investments and hedge funds, the
Wall Street Journal
The Greenwich, Conn.-based firm, which has $5.8 billion in assets, could go for as much as $300 million, the Journal says.
John Mack, the New York brokerage firm's chairman and chief executive, has been looking to bolster Morgan Stanley's alternative-investment platform, including hedge funds and private equity buyouts. Last Thursday, the company announced that it had hired Stephen Trevor from
and appointed its own head of corporate finance, Alan Jones, to become co-heads of its newly established private equity business.
Morgan Stanley had been in talks with FrontPoint over last year, but at the time, its price tag of $1 billion was above what Mack wanted to pay.
Under the new deal's terms, FrontPoint's chairman Philip Duff would become a consultant to Morgan Stanley on strategic issues, however, he wouldn't join as a senior executive.
Spokeswomen for Morgan Stanley and FrontPoint decline to comment on Thursday.