Key Takeaways
- • Morgan Stanley AIP Private Markets Secondaries, an investment team within Morgan Stanley Investment Management, completed an investment in Axispoint Technology Solutions Group (ATSG) through a secondary partnership with private equity firm RunTide Capital, announced February 8, 2021.
- • ATSG is an IT solutions and managed services provider serving more than 400 middle-market customers, led by founder Frank Scanga and CEO Anthony D'Ambrosi, and has completed six acquisitions in recent years.
- • According to RunTide Partner Rob Manning, ATSG's platform has more than tripled in size since RunTide's first investment in 2019, and the new growth capital is intended to position it as a consolidator in the fragmented IT services sector.
- • The transaction is a GP-led single-asset secondary, consistent with the Morgan Stanley team's focus on developed buyout and growth markets; the team has deployed $3.8 billion across more than 200 secondary transactions.
Summary
Morgan Stanley Alternative Investment Partners (AIP) Private Markets Secondaries, an investment team within Morgan Stanley Investment Management, announced that its investment funds have completed an investment in Axispoint Technology Solutions Group (ATSG) through a secondary partnership with RunTide Capital, the private equity firm that serves as ATSG's general partner. The company's press release was distributed via Business Wire from New York.
ATSG describes itself as a best-in-class IT solutions and managed services provider focused on helping middle-market enterprises with digital transformation. The company handles the full IT services lifecycle, from design work through implementation, optimization and ongoing management, for more than 400 customers. It is led by founder Frank Scanga and CEO Anthony D'Ambrosi, and has completed six acquisitions in recent years. The company was recognized by CRN with its 2020 Triple Crown Award, which honors IT solutions providers for size, fast growth and high-level vendor certifications. ATSG is headquartered in Manhattan and is a portfolio company of RunTide Capital.
Nash Waterman, Head of the Morgan Stanley AIP Private Markets Secondaries Team, said the firm was excited to partner with RunTide and the ATSG team to support a leading IT services company that provides high value-added services to a blue-chip customer base. Rob Manning, Partner at RunTide Capital, said the relationship with Morgan Stanley Investment Management is long-standing and that the new growth capital will be used to aggressively grow the ATSG platform, which has more than tripled in size since RunTide's first investment in 2019. Manning described ATSG as well positioned to act as a consolidator in the rapidly growing and fragmented IT services sector.
The transaction was structured as a single-asset GP-led secondary, a strategy the Morgan Stanley team focuses on in developed buyout and growth markets. According to the release, the team is part of a broader group of 50 private markets professionals and has deployed $3.8 billion to more than 200 secondary transactions, including over $1.8 billion committed to 37 GP-led transactions as of September 30, 2020. The release did not disclose the transaction size or the financial terms of the deal.
ATSG describes itself as a best-in-class IT solutions and managed services provider focused on helping middle-market enterprises with digital transformation. The company handles the full IT services lifecycle, from design work through implementation, optimization and ongoing management, for more than 400 customers. It is led by founder Frank Scanga and CEO Anthony D'Ambrosi, and has completed six acquisitions in recent years. The company was recognized by CRN with its 2020 Triple Crown Award, which honors IT solutions providers for size, fast growth and high-level vendor certifications. ATSG is headquartered in Manhattan and is a portfolio company of RunTide Capital.
Nash Waterman, Head of the Morgan Stanley AIP Private Markets Secondaries Team, said the firm was excited to partner with RunTide and the ATSG team to support a leading IT services company that provides high value-added services to a blue-chip customer base. Rob Manning, Partner at RunTide Capital, said the relationship with Morgan Stanley Investment Management is long-standing and that the new growth capital will be used to aggressively grow the ATSG platform, which has more than tripled in size since RunTide's first investment in 2019. Manning described ATSG as well positioned to act as a consolidator in the rapidly growing and fragmented IT services sector.
The transaction was structured as a single-asset GP-led secondary, a strategy the Morgan Stanley team focuses on in developed buyout and growth markets. According to the release, the team is part of a broader group of 50 private markets professionals and has deployed $3.8 billion to more than 200 secondary transactions, including over $1.8 billion committed to 37 GP-led transactions as of September 30, 2020. The release did not disclose the transaction size or the financial terms of the deal.
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