Press Release
  •  
February 14, 2024

cPacket Announces Closing of a $67M Investment from Morgan Stanley Expansion Capital and Trinity Capital Inc.

 

Press Release

cPacket Announces Closing of a $67M Investment from Morgan Stanley Expansion Capital and Trinity Capital Inc.

cPacket Announces Closing of a $67M Investment from Morgan Stanley Expansion Capital and Trinity Capital Inc.

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February 14, 2024

 
 

cPacket closed on a $67M funding round of debt and equity, to extend its product and technology lead in the enterprise hybrid network observability and security market.

Milpitas, California — Febraury 14, 2024 9:00 AM

cPacket Networks Inc. is thrilled to announce the successful completion of a $67 million transaction, including a primary and secondary equity investment by funds managed by Morgan Stanley Expansion Capital and a debt refinancing by Trinity Capital Inc. (Nasdaq: TRIN) (“Trinity"). The involvement of these premier investors in this difficult market reflects positively on the company’s performance, its strategic positioning and the exciting market opportunity.

Morgan Stanley Expansion Capital has a long history of successful investments in established, late-stage growth companies, like cPacket. In addition to capital, the cPacket team will leverage Morgan Stanley Expansion Capital’s experience in providing strategic advice and global perspective to help build upon cPacket’s momentum.

“cPacket has demonstrated consistent and highly efficient growth and we are excited to partner with Brendan and his talented team to execute on the next chapter of success. The increasing complexity and performance required of modern enterprise networks is driving increasing need for high-quality, real-time packet data and analytics. Many of the world's most demanding customers trust cPacket to inform their critical decisions and cPacket is at the forefront of technological leadership in the market.”

-- Pete Chung, Head of Morgan Stanley Expansion Capital

The debt investment comes from Trinity Capital Inc., a leading provider of diversified financial solutions to growth stage companies with institutional equity investors. With $3 billion in investments since inception, Trinity has the depth of knowledge, experience and track record in lending to growth stage companies. “We are excited to partner with cPacket as it expands its market leading network observability technology to address the needs of its blue-chip enterprise customer base.” said Jack McNamara, Director, Tech Lending at Trinity.

cPacket will use the funds to accelerate product development, including 400Gbps Observability nodes, expanding its Cloud and hybrid footprint and introducing innovative use of AI/ML to drive deep but business relevant insights from customers packet data. In addition, the company will continue to scale its sales and marketing efforts globally.

“We are delighted to have the support and endorsement of Morgan Stanley Expansion Capital and Trinity Capital. We will strategically utilize their funding to drive market expansion and talent acquisition, as we accelerate delivery of our ground-breaking network observability solutions for our clients across financial services, healthcare, high-tech and government sectors.”

-- Brendan O’Flaherty, CEO cPacket Networks Inc.

Citizens JMP Securities, LLC served as exclusive financial advisor to cPacket Networks in connection with the transaction.

About cPacket Networks

cPacket Networks powers hybrid-cloud observability through its Intelligent Observability Platform. It reduces service outages through network-centric application analysis, strengthens cyber security through high-resolution network data for threat detection, and accelerates incident response through network forensic analysis. The result is increased service agility, experience assurance, and transactional velocity for the business. Find out more at www.cpacket.com.

About Morgan Stanley Expansion Capital

Morgan Stanley Expansion Capital

Morgan Stanley Expansion Capital is the growth-focused private investment platform within Morgan Stanley Investment Management. Morgan Stanley Expansion Capital targets growth equity and credit investments within consumer, technology, healthcare, and other high-growth sectors. For over three decades, Morgan Stanley Expansion Capital has successfully pursued growth investment opportunities and has completed investments in over 200 companies, leveraging the global brand and network of Morgan Stanley.

About Trinity Capital Inc.

Trinity Capital (Nasdaq: TRIN), an internally managed business development company, is a leading provider of diversified financial solutions to growth-stage companies with institutional equity investors. Trinity Capital's investment objective is to generate current income and, to a lesser extent, capital appreciation through investments, including term loans, equipment financings and equity-related investments. Trinity Capital believes it is one of only a select group of specialty lenders that has the depth of knowledge, experience and track record in lending to growth-stage companies. For more information, please visit the Company's website at www.trinitycap.com/im.

 
 
 
The Expansion Capital team manages a private equity platform targeting later-stage investments in technology, healthcare, consumer, digital media and other high-growth sectors.
 
 

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