Morgan Stanley and Mitsubishi UFJ Financial Group (MUFG) launched their Global Strategic Alliance in 2008, and established Morgan Stanley MUFG Securities (MSMS) and Mitsubishi UFJ Morgan Stanley Securities (MUMSS) as a Japanese securities joint venture in May 2010.
Power of Collaboration between Morgan Stanley and MUFG
The joint venture entities, MSMS and MUMSS, leverage the combined capabilities of Morgan Stanley’s global reach and financial expertise and MUFG’s unparalleled client footprint, collaborating closely and offering unprecedented financial services to clients. By doing so, the joint venture aims to become the top securities firm in Japan.
Since the launch of the joint venture, MSMS and MUMSS have been collaborating closely in many aspects. The integrated investment banking team and respective capital markets teams have jointly scored solid wins on a number of notable transactions in the areas of M&A advisory and equity and debt offerings. Over the years, the collaboration has also extended to the area of wealth management.
In July 2023, Morgan Stanley and MUFG announced the launch of “Alliance 2.0”, an enhanced Global Strategic Alliance for further collaboration between the two institutions. Through this initiative, MSMS and MUMSS have integrated the Japanese research and equity businesses for institutional clients into MSMS, enabling the joint venture to better serve clients with a more extensive range of financial services and products.
Joint Venture Structure
While the investment banking operations are integrated into MUMSS, we believe the two-company structure is the most effective business model to optimize the joint venture entities’ ability to leverage their respective capabilities and provide our clients with the best possible service.
＊Please refer to the press release dated July 18, 2023 for details about the collaboration in Japanese Research and Equity Businesses for Institutional Clients.
MUMSS offers services to its retail customers that includes a wide range of unique product lineups leveraging Morgan Stanley’s global market expertise, in addition to conventional products and services they offered prior to the formation of the joint venture.
To corporate clients, the joint venture provides sophisticated services and solutions in M&A advisory, equity and debt underwriting and other products that can be realized through the collaboration between Morgan Stanley and MUFG, leveraging each of their extensive network and know-how.
Both MSMS and MUMSS offer products and services through each of their sales and trading functions to corporate clients including institutional investors by leveraging their respective strengths and unique value propositions. With the launch of “Alliance 2.0”, the two companies will be collaborating in the Japanese research and equity businesses for institutional clients to meet the increasingly sophisticated and diversifying needs of clients.
Two-Company Structure
Morgan Stanley has a 51 percent voting interest (and 40 percent economic interest) in MSMS, while MUFG has 49 percent voting interest (and 60 percent economic interest), making MSMS a consolidated Morgan Stanley entity.
MUFG holds a 60 percent interest in MUMSS, while Morgan Stanley holds a 40 percent interest, making MUMSS a consolidated entity of MUFG.
Through the cross-shareholdings and by sending officials as each entity’s management members, MSMS and MUMSS are strongly bound together.
