NEW YORK, Nov 19 (Reuters) - Morgan Stanley ( MS ) is

looking to add employees of startup companies as wealth

management clients as U.S. investment banks prepare for a

revival of initial public offerings.

Last week, the bank signed an agreement with Carta, a

shareholder management company for startups backed by private

equity and venture capital firms. Carta estimates about 2,000 of

its 40,000 clients are headed toward an IPO.

"Participants within these companies will need not just

equity administration, but all the advice, guidance and

financial planning that comes with a significant liquidity

event," Jed Finn, head of Morgan Stanley Wealth Management, said

in a statement.

The bank would offer founders and employees retirement and

investment advice, for example.

Bankers had been cautiously optimistic about a revival of

IPOs in the third quarter. Following the elections this month,

markets expect the administration of president-elect Donald

Trump to soften regulations and reduce restrictions on deals,

favoring capital markets activity.

"Wealth clients coming from workplace relationships, either

during IPOs or when the company is already public, are usually

younger than the average wealth client and have around 70% of

their wealth in stocks of the company they work for," Finn said

in a phone interview.

Morgan Stanley ( MS ) has about 19 million wealth clients, and most

of the 1.3 million new clients it added in the last year came

from workplace agreements.

The bank in 2019 bought Solium Capital, a stock plan

management company, for $1.1 billion and rebranded it as

Shareworks.

While capital markets have been sluggish, upcoming IPOs may

include large companies that have been through multiple

fundraising rounds with larger workforces, Finn added.