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MSPES completes equity financing in ATSG and Evolve IP

MSPES completes equity financing in ATSG and Evolve IP

Investment funds managed by Morgan Stanley Private Equity Secondaries, through a vehicle managed by RunTide Capital, today announced the completion of an equity financing to complete the combination of ATSG and Evolve IP.

ATSG is a global technology provider for cloud, IT managed services and cybersecurity, and Evolve IP is a global leader in desktop-as-a-service, unified communications, contact center and other cloud services. The combined organization will create a leading global provider of managed IT services serving more than 1,700 customers worldwide to 950,000 end users. The transaction is expected to accelerate ATSG’s services and solutions capabilities and further enhance the combined entity’s ability to solve customers’ increasingly complex and interconnected technology challenges.

Commenting on the transaction, Dan Wieder, Managing Director at Morgan Stanley Private Equity Secondaries, said: “We are delighted to partner with RunTide Capital to support a transformational combination of two attractively positioned IT services companies. The combination creates a platform at scale with a suite of best-in-class solutions led by an experienced management team. ATSG has successfully implemented its multi-pronged approach to value creation since our initial investment in 2021. We are excited to leverage the follow-on fund’s technology in new ways to provide additional support to an existing investment in a market-leading platform medium, supported by a specialized and aligned General Partner.”

Morgan Stanley Private Equity Secondaries invested in ATSG in a follow-on fund transaction alongside RunTide Capital in January 2021.

Rob Manning, Partner at RunTide Capital, said: “We are delighted to continue our partnership with Morgan Stanley Private Equity Secondaries through our investment in the ATSG platform. The opportunity to bring ATSG and Evolve IP together marks an exciting new chapter in our IT outsourcing investment thesis. Complementary portfolios, go-to-market strategies and technology capabilities will accelerate growth, bringing enhanced services to an even broader customer base globally.”

About RunTide Capital:

RunTide Capital is a private equity firm focused on building technology-based growth companies. The founding partners are seasoned investors with deep operating experience who began their careers as founders and C-level executives of high-growth technology companies. For more information, please visit www.runtidecapital.com.

About ATSG:

ATSG is a leading global managed services provider, providing award-winning digital transformation services to today’s dynamic enterprises. Its robust portfolio of premium managed services includes cloud, desktop-as-a-service, network, operations and cybersecurity services. Headquartered in Manhattan, New York, ATSG is a portfolio company of RunTide Capital, a private equity firm focused on building technology-based growth companies.

About Morgan Stanley Private Equity Secondaries

Morgan Stanley Private Equity Secondaries, an investment team within Morgan Stanley Investment Management, seeks to provide innovative private market solutions to a global client base. As part of a broader team of 250 dedicated private markets professionals, the secondary business builds on decades of experience in private markets investing. Focusing on GP-led single-asset deals in developed buy and growth markets, the team structures compelling opportunities in underperforming markets and has implemented $5.4 billion in 54 GP-led secondary deals as of June 30, 2024. For additional information on Morgan Stanley Private Equity Secondary, visit www.morganstanley.com/im/ashbridge.

Morgan Stanley Investment Management

Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,400 investment professionals worldwide and $1.6 trillion in assets under management or supervision as of September 30, 2024. Morgan Stanley Investment Management strives to deliver performance outstanding long-term investment performance, services and a comprehensive suite of investment management solutions for a diverse client base that includes governments, institutions, corporations and individuals worldwide. For more information on Morgan Stanley Investment Management, please visit www.morganstanley.com/im.

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a global financial services firm that provides a broad range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the firm’s employees serve clients worldwide, including corporations, governments, institutions and individuals. For more information on Morgan Stanley, please visit www.morganstanley.com.

Contacts:

Morgan Stanley: Alyson Barnes

[email protected]