Polygon Investment Partners, one of the most high-profile hedge fund casualties of the credit crisis, is in talks to bring in Morgan Stanley's former head of real estate investments to advise it on its property holdings.

John Carrafiell, who was global co-head of Morgan Stanley Real Estate, the US bank's principal investing and investment banking property arm, is in talks with Polygon to advise it on its German commercial property holdings, according to a source familiar with the situation.