{"id":2944,"date":"2026-06-25T18:44:35","date_gmt":"2026-06-25T18:44:35","guid":{"rendered":"https:\/\/reliablemovingcrews.com\/?p=2944"},"modified":"2026-06-25T18:44:35","modified_gmt":"2026-06-25T18:44:35","slug":"morgan-stanley-was-among-first-global-banks-to-back-mfs-before-boom-and-bust","status":"publish","type":"post","link":"https:\/\/reliablemovingcrews.com\/?p=2944","title":{"rendered":"Morgan Stanley was among first global banks to back MFS before boom and bust"},"content":{"rendered":"<div>\n<div>\n<div>\n<ul>\n<li>Summary<\/li>\n<li>Companies<\/li>\n<\/ul>\n<\/div>\n<div><\/div>\n<\/div>\n<div>LONDON, June 25 (Reuters) &#8211; Morgan Stanley was among the first Wall Street backers of Market Financial \u200bSolutions Ltd., lending credibility to the British private credit business before its boom and later collapse under $2.4 billion \u200cof debt, documents reviewed by Reuters show.<\/div>\n<div>The U.S. investment bank provided early backing to MFS founder Paresh Raja as the former drinks store owner expanded his UK mortgage business, the documents show.<\/div>\n<div>In November 2021, Morgan Stanley bought \u00a350 million ($66 million) of &#8220;Class A loan notes&#8221; from Earthave Bridging, a business controlled \u200bby Raja that funded MFS, according to a loan document filed with UK Companies House. Earthave sold the notes \u200bto buy MFS&#8217;s mortgages and later repaid investors, according to its 2021 and 2024 accounts.<\/div>\n<div>Morgan Stanley&#8217;s link \u2060to Raja&#8217;s complex network, reported here for the first time, was followed by deals involving major banks including HSBC, Barclays \u200band Wells Fargo. MFS&#8217;s collapse has alarmed regulators, highlighting how exposed mainstream financial firms may be to the loosely regulated $3-trillion-plus private credit \u200bmarket.<\/div>\n<div>Morgan Stanley declined to comment for this article.<\/div>\n<div>Filings reviewed by Reuters show its loan to Earthave was repaid with interest. Banks that backed the group later suffered heavy losses.<\/div>\n<h2>REGULATORY INVESTIGATIONS<\/h2>\n<div>The 2021 Morgan Stanley deal marked the first publicly documented link between Raja, MFS and Wall Street. It came at \u200bthe start of a global rush into private credit by institutions ranging from insurers to small public pension funds.<\/div>\n<div>MFS collapsed in February \u200bowing \u00a31.8 billion ($2.4 billion) to creditors, according to its administrators, AlixPartners. Some creditors have accused Raja of misappropriating company funds, according to UK court \u200cfilings reviewed \u2060by Reuters. In a March court judgment, a judge said Raja had apparently since fled to Dubai.<\/div>\n<div>AlixPartners declined to comment. Raja&#8217;s representative, Salamander Davoudi of Tancredi Intelligent Communication, also declined to comment.<\/div>\n<div>MFS provided bridging loans and buy-to-let mortgages to wealthy UK homebuyers, a prime example of private credit firms that flourished after post-financial crisis rules curbed risk-taking by major lenders.<\/div>\n<div>Big banks later built exposure to \u200bthe lightly regulated private credit \u200bsector, which grew to about $3.1 \u2060trillion before a wave of defaults and insolvencies prompted some investors to pull money out.<\/div>\n<div>There were &#8220;serious and unresolved questions regarding the management and governance&#8221; of MFS, Britain&#8217;s chief insolvency judge said in a ruling<svg><\/svg><span>, opens new tab<\/span> \u200bin late February, adding that multiple large financial institutions had become creditors.<\/div>\n<div>Raja struck deals with \u200bdomestic and regional \u2060banks channelling funds into MFS from at least 2015, a Reuters review of filings from 78 companies he controlled showed.<\/div>\n<div>In 2025, Raja-controlled companies raised hundreds of millions of pounds for MFS from global banks, including Wells Fargo, which invested \u00a3142 million in October last year according \u2060to insolvency \u200bfilings.<\/div>\n<div>Wells Fargo declined to comment.<\/div>\n<div>Britain&#8217;s Financial Conduct Authority opened an investigation<svg><\/svg><span>, opens new tab<\/span>into MFS in March. \u200bThe country&#8217;s Financial Reporting Council<svg><\/svg><span>, opens new tab<\/span> announced on June 11 an investigation into a group of auditors involved with MFS and related companies.<\/div>\n<div>The FRC declined to comment and \u200bthe FCA did not immediately respond.<\/div>\n<div>($1 = 0.7557 pounds)<\/div>\n<\/div>\n<p>Read more <a href=\"https:\/\/reliablemovingcrews.com\/?p=2942\">Bumble dating app explores sale, sources say<\/a><\/p>\n<p>Read more <a href=\"https:\/\/reliablemovingcrews.com\/?p=2940\">Nasdaq drops as tech megacap declines outweigh upbeat chip outlook<\/a><\/p>\n<p>Read more <a href=\"https:\/\/reliablemovingcrews.com\/?p=2938\">JPMorgan reshapes Jamie Dimon succession race with executive shuffle<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Morgan Stanley was among the first Wall Street backers of Market Financial \u200bSolutions Ltd., lending credibility to the British private credit business before its boom and later collapse under $2.4 billion \u200cof debt, documents reviewed by Reuters show.<\/p>\n","protected":false},"author":1,"featured_media":2943,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[112,63],"class_list":["post-2944","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-capital-markets","tag-funds"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - 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