Morgan Stanley’s IPO after-party: a wealth management bonanza

Morgan Stanley is benefiting from a strong IPO market, with its wealth management arm pulling in more than $74bn in net new assets in the second quarter from employee equity plans tied to IPOs, including SpaceX and Cerebras Systems. The influx helped drive record second-quarter wealth management net revenue of $8.9bn and pushed total client assets above $10tn. The article highlights how the bank’s Solium-based stock plan business monetizes liquidity events by converting private-company equity into recurring wealth-management assets and fees. Management says the IPO-driven gains are not a one-off and expects dozens of upcoming IPOs to support further inflows if capital markets remain open. The development is positive for Morgan Stanley’s earnings mix and underlines how AI-related investment and private-market listings are creating a new earnings lever for Wall Street banks beyond traditional underwriting fees.