(Bloomberg) — It’s not just Morgan Stanley’s IPO bankers that are benefiting from the frenzy of companies going public in recent weeks.
The bank hauled in $148 billion of net new assets in its wealth-management business in the second quarter, over half of which were tied to IPOs, according to a statement Wednesday.
SpaceX’s record-breaking listing earlier this year proved to be a field day for Morgan Stanley and its Wall Street peers that helped take it public. Elon Musk’s space and artificial-intelligence conglomerate agreed to pay dealmakers a $500 million fee for the offering, or about 0.67% of the $75 billion IPO haul. Even at that paltry rate, it’s still one of the biggest fee-paying events on Wall Street of all time.
As the lead banks, Goldman Sachs Group Inc. and Morgan Stanley took home the biggest share of that fee pool, notching roughly $100 million each.
Read More: Morgan Stanley Joins Wall Street Rivals With Stock-Trading Boon
But Morgan Stanley’s win in the wealth-management space is a testament how long-lasting the riches from technology IPOs can be for banks. Founders and employees with large stakes in the companies are often seeking to find avenues to invest their latest riches.
The bank has sought to help early-stage companies, to line up the potential for a longer relationship with the firms and their employees, according to Morgan Stanley Chief Financial Officer Sharon Yeshaya.
“We have about 70% of the top 100 unicorns by market cap in terms of our workplace pipeline,” Yeshaya said in an earnings call. “So we’ve spent a lot of time thinking about how do we service some of these companies at the very early stages.”
