Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt UPDATED: Morgan Stanley to acquire 60% of Zenith
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UPDATED: Morgan Stanley to acquire 60% of Zenith

Date: 31 August 2010   |   Author: Rachel Burgess

"Independents are providing a valuable service to the banking industry because they are effectively taking on the residual risk for the banks," says Andrew Cope, Zenith

Morgan Stanley Private Equity is set to acquire a 60% stake in Zenith Provecta for an undisclosed sum, in a move that will help provide capital for more acquisitions in the future.

The management team, which still holds the remaining stake, stays unchanged and customers will see no difference in business operations, said chief executive Andrew Cope.

It is Zenith's fourth venture capital partnership - previously Barclays held a 40% stake - but Cope said the move was "confirmation of more of the same and a continuation of growth and development".

While there are no acquisitions on the cards at the moment, the new partnership gives the firm more stability and ability to take advantage if such opportunities arose, he said. "We felt MSPE provided us with a lot of comfort and security that we can buy a business if we want to.

"The new partnership will allow the continued organic growth of Zenith and potentially growth by acquisition. We believe that being part of the Morgan Stanley franchise will provide real comfort and security for our customers and partners."

Brian Magnus, head of MSPE in Europe, said: "We are delighted to invest in Zenith and to support its high-calibre management team."

The transaction is subject to regulatory approval and is expected to complete in six weeks, while the terms of it were not disclosed. Leeds-based Zenith was founded in 1989 manages over 27,000 vehicles on behalf of its corporate clients.

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