ABN Amro Asset Management has agreed to acquire fund of hedge funds manager International Asset Management, a move that will pump up ABN's HF business from $1.4 billion AUM to more than $4 billion. The deal is the latest move in the Dutch firm's expansion into hedge funds, and the addition of IAM's five partners, including Chairman Albert Fuss and managing director Anthony Forward, will allow the firm to focus on offering hedge fund products to mid-market "mass affluent clients" as well as midsized and large institutions. The deal is expected to close this quarter.

Meanwhile, rumor has it that Morgan Stanley may have its eye on acquiring a controlling stake in hedge fund BlackRock, but no one is talking. If it does come about, Reuters reports, it would come as no big surprise, as Morgan CEO John Mack has made clear his interest in acquiring businesses, particularly hedge fund managers, and the costs associated with regulatory requirements just might encourage hedge funds to put themselves up for sale.