Businessweek

t banking products for institutional investors and high net worth individuals. The company’s alternative investments platform includes funds of hedge funds, funds of private equity and real estate funds and portable alpha strategies. The company’s alternative investments platform also includes minority stakes in Lansdowne Partners, Avenue Capital Group and Traxis Partners LP. The company’s real estate and merchant banking businesses include its real estate investing business, private equity funds, corporate mezzanine debt investing group and infrastructure investing group. The company typically acts as general partner of, and investment adviser to, its alternative investment, real estate and merchant banking funds and typically commits to invest a minority of the capital of such funds with subscribing investors contributing the majority. Institutional Investors The company provides investment management strategies and products to institutional investors worldwide, including corporations, pension plans, endowments, foundations, sovereign wealth funds, insurance companies and banks through a range of pooled vehicles and separate accounts. Additionally, the company provides sub-advisory services to various unaffiliated financial institutions and intermediaries. A Global Sales and Client Service team is engaged in business development and relationship management for consultants to help serve institutional clients. Intermediary Clients and Individual Investors The company offers open-end and alternative investment funds and separately managed accounts to individual investors through affiliated and unaffiliated broker-dealers, banks, insurance companies, financial planners and other intermediaries. Closed-end funds managed by the company are available to individual investors through affiliated and unaffiliated broker-dealers. The company also distributes mutual funds through various retirement plan platforms. Internationally, the company distributes traditional investment products to individuals outside the U.S. through non-proprietary distributors and distributes alternative investment products through affiliated broker-dealers and banks. Supervision and Regulation Financial Holding Company: The company is a financial holding company regulated by the Board of Governors of the Federal Reserve System (the Federal Reserve) under the Bank Holding Company Act of 1956, as amended. U.S. Bank Subsidiaries U.S. Banking Institutions: MSBNA, primarily a wholesale commercial bank, offers consumer margin lending and commercial lending services in addition to deposit products. Certain foreign exchange activities are also conducted in MSBNA. As an Federal Deposit Insurance Corporation (FDIC) insured national bank, MSBNA is subject to supervision, regulation and examination by the Office of the Comptroller of the Currency (OCC). MS Private Bank offers certain mortgage and other secured lending products primarily for customers of its affiliate retail broker-dealer, Morgan Stanley Smith Barney LLC (MSSB LLC). MS Private Bank also offers certain deposit products, as well as personal trust and prime brokerage custody services. MS Private Bank is an FDIC-insured national bank whose activities are subject to supervision, regulation and examination by the OCC. Transactions with Affiliates: The company’s U.S. bank subsidiaries are subject to Sections 23A and 23B of the Federal Reserve Act, which impose restrictions on any extensions of credit to, purchase of assets from, and certain other transactions with, any affiliates. Institutional Securities and Global Wealth Management Group Broker-Dealer Regulation: The company’s primary U.S. broker-dealer subsidiaries, MS&Co. and MSSB LLC, are registered broker-dealers with the SEC and in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands, and are members of various self-regulatory organizations, including the Financial Industry Regulatory Authority, Inc., and various securities exchanges and clearing organizations. Regulation of Futures Activities and Certain Commodities Activities: As futures commission merchants, MS&Co. and MSSB LLC are