Americas Middle-Market Private Equity Strategy
Americas Middle-Market Private Equity Strategy

Americas Middle-Market Private Equity Strategy

 
 
 

Note: All energy, oil and gas, and natural resources sector investments will be completed through or alongside Morgan Stanley Energy Partners (MSEP).

Summary

The Americas Middle-Market Private Equity Strategy, managed by Morgan Stanley Capital Partners (MSCP), focuses on privately negotiated equity and equity-related investments primarily in North America and seeks to create value in portfolio companies primarily through operational improvement.

 
 
Investment Approach
Philosophy

• We pursue opportunities in which we believe we have a differentiated “angle” that can give the Investment Team a distinctive competitive advantage versus other owners.

• Our focus is on value creation through operational improvement and “value added” oversight  coupled with thoughtful financing and advantaged sourcing. 

• We invest primarily in control transactions via corporate carve-outs, founder-led recapitalizations, growth equity investments, industry roll-ups, management buyouts, and platform builds.

• We’ve maintained a consistent, middle market focus investing in companies with Enterprise Values  from $100 million to $1 billion; EBITDA $10 million to $100 million. 

• Larger investments can be made in partnership with co-investors and target equity investments can be made over time to support a platform build.

 
Differentiators
Global Network

Capital Partners is believed to operate the only middle market private equity strategy with direct access to the network and resources of a global, bulge bracket firm; benefits of Morgan Stanley’s global network and resources materialize throughout the lifecycle of a deal, from sourcing to execution to portfolio company management and to ultimate exit.

Experienced Investment Team

The partners bring a complementary blend of investing and operating experience to the Strategy, and are bolstered by a diverse team of investment professionals, whose varied perspectives are a result of years of principal investing, operating, corporate business development, investment banking and consulting experience.

Integrated Operating Partners

Full-time operating partners are integrated into the entire lifecycle of a deal, from initial management meeting through investment exit, taking a hands-on role with each portfolio company to help drive strategic imperatives.

Investments

Current and exited portfolio investments of active Americas Middle-Market Private Equity Strategy funds

CURRENT HOLDINGS
Fisher Container Corp. Acquired February 2017. Fisher Container Corp. is a converter of flexible packaging products primarily in the cleanroom and food end markets.
Cadence Education Acquired September 2016. Cadence Education, headquartered in Scottsdale, AZ, is one of the United States’ leading providers of early childhood education, focusing on the care and curriculum-based education of children between the ages of six weeks and twelve years old. The Company’s national platform of more than 150 schools has the capacity to serve more than 20,000 students across 20 different states.
Pathway Acquired August 2016. Pathway is a leading veterinary hospital owner and operator. The Company owns a portfolio of general and specialty veterinary hospitals, and, together with their veterinarians and staff, are dedicated to providing the highest and most ethical standard of patient care. The Company provides systems and processes to enhance productivity and improve medical services while maintaining the practice’s local culture and community identity.
24 Seven Acquired August 2016. 24 Seven is one of North America’s preeminent human capital management firms specializing in the placement of freelance and full-time creative, marketing and digital talent. The Company delivers advertising, creative, marketing and interactive / digital professionals for freelance and permanent placements.
CoAdvantage Acquired October 2015. CoAdvantage is one of the largest professional employer organizations in the U.S. It provides outsourced human resource services including payroll & tax administration, employee benefits, compliance assistance, training & development, and risk management to over 2,000 small and mid-sized businesses.
Hojeij Branded Foods Acquired July 2015. Hojeij Branded Foods is a leading operator of airport restaurants throughout the U.S. that specializes in operating franchised, proven restaurant concepts across over a portfolio of established brands. It operates in four core categories: (i) quick service restaurants, (ii) casual dining, (iii) coffee, dessert, and bars and (iv) healthier alternatives.
Access Cash Acquired March 2012. Access Cash manages the largest network of ATMs in Canada, offering products and services for over 9,000 ATMs in grocery stores, convenience stores and more. It processes more than 32 million revenue-generating cash withdrawal transactions annually. Access Cash also goes to market under the brand names Access Cash, EZEE ATM, Maritime Cash and Cash N Go and under a co-branding arrangement with BMO Bank of Montreal.
Sterling Energy Acquired August 2011. Sterling Energy is a privately-owned natural gas gathering, processing and marketing company serving oil and gas producers in northeast Colorado and northwest North Dakota.
Smile America Partners Acquired December 2010. Smile America Partners is the largest US provider of administrative support services to affiliated dentists in the mobile dental industry, promoting access to oral healthcare for children from low-income families.
Trinity CO2 Acquired August 2010. Trinity CO2 is one of the largest independent CO2 pipeline systems in the US. It transports and supplies CO2 to enhanced oil recovery projects in Texas and New Mexico, while its marketing business sources and supplies CO2 to regional third parties.
Triana Energy Acquired May 2009. Triana Energy is a natural gas company led by one of the premier management teams in the Appalachian Basin. Triana was founded by Henry Harmon, previously Chairman & CEO of the previous MSCP portfolio company of the same name.
Breitenfeld Acquired July 2008. Breitenfeld manufactures high-specification specialty steel for forging-related products. Located in Austria, key industries for its products include power generation, oil and gas, mechanical engineering, transportation and tool steel.
EXITED HOLDINGS
Creative Circle Exited June 2015. Creative Circle is a staffing agency representing advertising, creative, marketing, visual communication and digital/interactive professionals. It delivers talent to top advertising agencies and marketing firms as well as to the marketing and communications departments of industry-leading companies.
EmployBridge Exited February 2015. EmployBridge is a leading provider of outsourced HR and specialty-branded temporary staffing services in the US. It operates primarily under the ResourceMFG, ProLogistix and ProDrivers brands, providing skilled personnel for specialty manufacturing, warehousing/logistics and transportation companies.
Learning Care Group Exited May 2014. Learning Care Group is a provider of childcare services to children between the ages of 6 weeks and 12 years. LCG operates under 5 distinct brands: Children’s Courtyard, Childtime Learning Centers, La Petite Academy, Montessori Unlimited and Tutor Time Childcare/Learning Centers.
Zenith Exited March 2014. Zenith is one of the UK's largest independent fleet management and vehicle outsourcing businesses, managing over 27,000 vehicles. Founded in 1989, it is headquartered in Leeds, and operates under the trading name Zenith - Intelligent Vehicle Solutions.
Tops Markets Exited November 2013. Tops Markets is a leading full-service grocery retailer in upstate New York. Tops operates as an independent, locally owned organization and considers their stores to have a "neighborhood grocer" feel.
McKechnie Aerospace Exited November 2013. McKechnie Aerospace designs and distributes components for the aerospace industry, primarily structures, electromechanical, and fasteners. McKechnie sells its products through multiple channels including OEMs, distributors and the aftermarket.
 
 
 
 
Investment Professionals  View Team Details >
Co-Head of Morgan Stanley Capital Partners
27 years industry experience
Co-Head of Morgan Stanley Capital Partners
21 years industry experience
Managing Director
33 years industry experience
Managing Director
29 years industry experience
Managing Director
15 years industry experience
Managing Director
29 years industry experience
Managing Director
14 years industry experience
Executive Director
24 years industry experience
Vice President
10 years industry experience
Vice President
6 years industry experience
Vice President
10 years industry experience
Vice President
7 years industry experience
Manuel de Zarraga
Investment Professional
Harrison Grussmark
Investment Professional
Eric Kim
Investment Professional
Patrick LaValley
Investment Professional
Brendan McGrath
Investment Professional
Siobhan Monahan
Investment Professional
Maxwell Waterous
Investment Professional
Kathy S. Yuh
Investment Professional

CONTACT US

For more information about Morgan Stanley Capital Partners, please contact
private.equity@morganstanley.com

 
 
 
 

As of September 30, 2017. Team information may change from time to time.

Alternative investments are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are suitable only for long-term investors willing to forego liquidity and put capital at risk for an indefinite period of time. Alternative investments are typically highly illiquid – there is no secondary market for private funds, and there may be restrictions on redemptions or assigning or otherwise transferring investments into private funds. Alternative investment funds often engage in leverage and other speculative practices that may increase volatility and risk of loss. Alternative investments typically have higher fees and expenses than other investment vehicles, and such fees and expenses will lower returns achieved by investors.

This is prepared for sophisticated investors who are capable of understanding the risks associated with the investments described herein and may not be appropriate for you.  The information presented represents how the portfolio management team generally implements its investment process under normal market conditions.

All information provided has been prepared solely for information purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The information herein has not been based on a consideration of any individual investor circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. To that end, investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.  There is no guarantee that any investment strategy will work under all market conditions, and each investor should evaluate their ability to invest for the long-term, especially during periods of downturn in the market. 

Any views and opinions provided are those of the portfolio management team and are subject to change at any time due to market or economic conditions and may not necessarily come to pass. Furthermore, the views will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing, or changes occurring. The views expressed do not reflect the opinions of all portfolio managers at Morgan Stanley Investment Management or the views of the firm as a whole, and may not be reflected in all the strategies and products that the Firm offers.

Diversification does not protect you against a loss in a particular market; however it allows you to spread that risk across various asset classes.  Past performance is no guarantee of future results.

Real estate values are affected by many factors including interest rates and property tax rates, zoning laws, changes in supply and demand, and in the local, regional and national economies.

In the ordinary course of its business, Morgan Stanley engages in a broad spectrum of activities including, among others, financial advisory services, investment banking, asset management activities and sponsoring and managing private investment funds. In engaging in these activities, the interest of Morgan Stanley may conflict with the interests of clients.

Funds of funds often have a higher fee structure than single manager funds as a result of the additional layer of fees. Alternative investment funds are often unregulated, are not subject to the same regulatory requirements as mutual funds, and are not required to provide periodic pricing or valuation information to investors. The investment strategies described in the preceding pages may not be suitable for your specific circumstances; accordingly, you should consult your own tax, legal or other advisors, at both the outset of any transaction and on an ongoing basis, to determine such suitability.

A separately managed account may not be suitable for all investors. Separate accounts managed according to the Strategy include a number of securities and will not necessarily track the performance of any index. Please consider the investment objectives, risks and fees of the Strategy carefully before investing. A minimum asset level is required. For important information about the investment manager, please refer to Form ADV Part 2.

No investment should be made without proper consideration of the risks and advice from your tax, accounting, legal or other advisors as you deem appropriate.

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All investing involves risks, including a loss of principal. Alternative investments are speculative and involve a high degree of risk. These investments are designed for investors who understand and are willing to accept these risks. Performance may be volatile, and an investor could lose all or a substantial portion of his or her investment.

 

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