Morgan Stanley (MS) investor relations material

Strategic outlook and market positioning

• Expects continued growth, not peak earnings, through at least 2026, driven by strong thematics in wealth management, M&A, and AI-related financing.

• Wealth management remains the largest growth opportunity, with client households expanding from 2.5 million in 2019 to over 20 million, and ambitions for much higher.

• Early to mid-stage in M&A and IPO cycles, with pent-up demand at corporate and private equity levels and robust pipelines expected to play out over 18–24 months.

• AI financing is still in early innings, with significant equity and credit activity and high market share in facilitating these deals.

• No signs of market cycle peaks in key business areas; sees ongoing opportunities across all client segments.

Investment banking and private equity trends

• Investment banking pipelines are robust, supported by strong credit conditions, high equity prices, and corporate confidence.

• M&A activity is expected to cascade through the economy, with competitive reactions driving further deals.

• Private equity monetization is complex and can take years, with a record number of sell-side mandates in the pipeline.

• Over 1,500 U.S. private equity companies valued above $1 billion, with incentives for monetization over time.

• Largest IPO for private equity, Medline, was led by the firm, highlighting leadership in private markets.

Markets and global opportunities

• Exceptional second quarter equity results, with long-term equitization trends intact, especially in Asia and emerging markets.

• Policy changes in Mexico and Brazil could rejuvenate equities; Germany and the Middle East present optionality for future growth.

• Fixed income is a secular growth area, with credit asset managers fueling global economic activity.

• Risk management demand is high due to volatility in rates, commodities, and currencies, with restructuring to support derivative and hedging business.

• Capital and balance sheet strength enable steady investment across ISG, IBD, markets, and wealth management lending.