Morgan Stanley (MS) investor relations material

Market environment and capital markets resilience

• Despite recent volatility from AI trends, geopolitics, and private credit headlines, capital markets and M&A pipelines remain robust and resilient, with strong demand and execution across sectors.

• Major transactions, including large LBOs and significant debt raises, have been completed even amid global uncertainty, indicating healthy underlying fundamentals.

• M&A volumes are recovering, though still below long-term trends, with regulatory factors influencing deal flow and credit markets supporting activity.

• Private equity faces pressure to return capital to LPs, with IPO markets reopening and providing more exit options.

• Anticipation of some of the largest IPOs in history in the next 18–24 months, especially in the U.S.

Private credit and asset management dynamics

• Credit risk remains a key focus, with private credit exposures—especially in software—seen as an asset management issue, not a systemic risk.

• Overexposure in certain sectors may lead to higher defaults and lower returns for some managers, but robust public credit markets continue to support M&A.

• Wealth management flows into private markets rose over 35% in March, with liquidity and risk conversations central to client engagement.

• The shakeout in private credit is expected to differentiate disciplined managers, with no systemic threat anticipated.

Strategic opportunities and global footprint

• Growth opportunities identified in global market equitization, institutionalization of credit, and cross-asset innovation.

• Leveraging technology and advisory expertise globally, with strong franchises in Asia, EMEA, and LatAm, and a focus on serving clients wherever opportunities arise.

• The competitive landscape is stable or declining, allowing for share gains through technology and integrated services.

• Wealth management and private banking businesses benefit from global flows, especially into U.S. assets.