Morgan Stanley Investment Management acquired a minority stake in...

Morgan Stanley Investment Management acquired a minority stake in Avenue Capital Group, which manages $12 billion in distressed and undervalued public and private credit securities, bank loans, trade claims and private debt and equity investments. Andrea Slattery, a spokeswoman, said Morgan Stanley declined to disclose terms, but a source with knowledge of the deal said the purchase price was just less than $280 million for a 15% stake in Avenue Capital. Avenue will invest all of the proceeds from the transaction in its funds, according to a joint statement from the two firms issued today. Avenue will remain an independent firm and its investment strategies will be available to Morgan Stanley institutional and high-net worth clients, Ms. Slattery said.