Morgan Stanley downsized its prime brokerage unit in Chicago, according to a source familiar with the matter.
The source said an undisclosed number of staff was laid off. The unit is dedicated to assisting funds in raising capital.
A report published today by New York-based FINalternatives, a provider of hedge fund and private equity news, said the Chicago office had closed. It also reported that some of the Chicago employees were offered jobs in the firms New York office.
A spokeswoman for the New York-based Morgan Stanley declined to comment.
Prime brokerages provide services to hedge funds such as clearing trades and lending.
Sue Asci is a reporter at InvestmentNews, a sister publication of Pensions & Investments