Morgan Stanley Is Ready, After a Decade, to Grow Through Deals

James Gorman is going shopping for his asset-management unit.

The Morgan Stanley chief said he’s looking to buy “small add-on firms” or hire teams to spur growth at his $463 billion investment management division. The unit’s fixed-income offering is “smaller than we would like” and the company sees opportunities to grow in alternative products such as private equity and infrastructure, he said on a call with analysts after the bank reported a drop in fourth-quarter revenue.

“There are a lot of spaces where we can add on,” Gorman said. “We’re not suggesting we’re about to do a mega-deal in asset ...