Expansion Capital Strategy
Expansion Capital Strategy

Expansion Capital Strategy

 
 
 
Summary

Morgan Stanley Expansion Capital is a private equity platform targeting late-stage growth investments in technology, health care, consumer, digital media and other high-growth sectors. For nearly three decades, Morgan Stanley has successfully pursued growth investment opportunities. Expansion Capital’s experienced investment team combines extensive growth equity and franchise experience to pursue a value-creation strategy focused on operational and financial measures. The team works closely with the successful entrepreneurs and business professionals underlying its investments to assist in building proprietary advantage for portfolio companies. Expansion Capital also leverages the brand and global network of Morgan Stanley to source investment intelligence and opportunities.

 
 
Investment Approach

Strategy


We seek companies largely beyond the development-risk phase and that have demonstrated customer and market validation.
While we do not require profitable operations for prospective investments, capital efficiency is emphasized

Investment Focus

Minority and shared-control, private equity investments.

Active lead investors, typically with board representation.

Predominantly U.S.-based with opportunistic investing internationally.

Expansion/later-stage opportunities targeting investment horizons of 2—5 years.

The Morgan Stanley Advantage

Expansion Capital benefits from Morgan Stanley's global resources, relationships, and franchise. This unique relationship affords our portfolio companies unparalleled access to thought-leaders, corporations and management teams and our investors with a unique channel for proprietary deal flow and portfolio access.

Value-Added Approach

Our strategy is to provide relevant advice to our portfolio companies, particularly regarding financing, board governance, capital structure, strategy and operational improvements, recruiting, and exit opportunities. Our team of industry experts continues to engage with our portfolio companies throughout the lifecycle of an investment.

PORTFOLIO

CURRENT PORTFOLIO
Voices.com Leading online marketplace for voiceover talent and other audio products and services
Eska Eska is a brand of bottled water derived, bottled, and shipped from one of the purest sources in Canada.
EcoIntense SaaS provider of Environmental, Health and Safety (EHS) and Sustainability software.
HighQ Solutions SaaS provider of collaboration and content workflow software
Callfire Software provider of digital text and voice communication tools
Clinipace Worldwide Clinipace Worldwide is a digital clinical research organization.
DiscoveRx Provides GPCR, Kinase and NHR assay solutions for drug discovery research.
DocuWare DocuWare provides document management software.
Ecentria Ecentria is a technology-enabled eBusiness Platform and a leading online destination for “greater” Outdoor and Public safety markets.
Fuhu Fuhu is a developer of educational consumer products and content for children.
GumGum GumGum is a digital marketing platform for the visual web.
iRise Designs, develops, and markets business application solutions.
MotionPoint MotionPoint is a leading provider of website localization services to Fortune 1000 companies.
Motive Medical Intelligence Motive is a provider of clinical decision support products.
NanoString Technologies Provides life science tools and develops molecular diagnostics.
Nutanix Nutanix is a provider of data center convergence software.
RocketLawyer RocketLawyer is on online legal destination website for individuals and small businesses.
ThruPoint Develops unified communication and mobile collaboration solutions.
VBrick Systems VBrick Systems produces video streaming and content management solutions.
Vigilant Solutions Vigilant is a provider of license plate and facial recognition products and solutions.
XSInc XSInc provides e-commerce and data management solutions for the life science and agricultural industries.
EXITED PORTFOLIO
AireSpace AireSpace develops wireless networking hardware. Acquired by Cisco, NASDAQ: CSCO.
Allscripts Healthcare Solutions Allscripts develops internet and client/server medication management solutions. NASDAQ: MDRX.
Anasazi Anasazi provides central reservations software and services. Acquired by REZsolutions, now Pegasus, NASDAQ: PEGS.
Arcadian Management Arcadian Management provides Medicare Advantage for underserved markets. Acquired by Humana, NYSE: HUM.
Aspect Telecommunications Aspect Telecommunications creates customer contact center solutions. NASDAQ: ASPT.
Astral Point Communications Astral Point develops optical networking transport systems. Acquired by Alcatel, NYSE: ALA.
Aurum Software Develops customer relationship management software. Acquired by The Baan Co., NASDAQ: BAANF (previously, NASDAQ: AURM).
Avamar Avamar provides backup and restore software and systems. Acquired by EMC Corporation, NYSE: EMC.
BenefitMall BenefitMall provides online benefits and health insurance. Acquired by Allied Capital Corporation, NYSE: ALD.
Bowstreet Bowstreet is the leading provider of portal-based tools and technology Acquired by IBM, NYSE: IBM.
Cambridge Heart Cambridge Heart researches and develops cardiac diagnostic products. NASDAQ: CAMH.
Cardiac Pathways Cardiac Pathways develops innovative solutions for cardiac and ablation catheters. Acquired by Boston Scientific, NYSE:BSX.
Ciphergen Biosystems Ciphergen Biosystems provides proteomics analysis tools. NASDAQ: CIPH.
Comergent Comergent is an enterprise suite of modular eBusiness applications that improve the efficiency and effectiveness of the selling processes. Acquired by Sterling Commerce, a subsidiary of AT&T, NYSE: T.
Commerce One Commerce One provides global e-commerce solutions. NASDAQ: CMRC.
CommTech Corporation CommTech Corporation is an operational support systems vendor. Acquired by ADC, NASAQ: ADCT.
Constant Contact Constant Contact develops email marketing solutions. NASDAQ: CTCT.
Control Delivery Systems Control Delivery Systems provides drug delivery systems. Acquired by pSivida, NASDAQ: PSDV.
Copper Mountain Networks Copper Mountain Networks is a DSL equipment manufacturer. NASDAQ: CMTN.
Core Security Technologies Core Security creates security software for enterprise vulnerability assessment. Acquired by Courion.
Counterpane Internet Security Provides internet security management software and services. Acquired by British Telephone Group, NYSE: BT.
Cross Country Staffing Cross Country Staffing provides health care staffing services. NASDAQ: CCRN.
CSG Systems International CSG Systems provides billing and customer care software for the communications industry. NASDAQ: CSGS.
Cytyc Cytyc develops diagnostic systems for cervical cancer screening. NASDAQ: CYTC.
E2open E2open is a global computer, electronics and telecommunications e-marketplace. NASDAQ: EOPN.
Ekos Provides ultrasound accelerated drug delivery catheters for rapid dissolution of blood clots. Acquired by BTG plc, LSE: BTG.
Endius Creates minimally invasive instruments for spine surgery. Acquired by Zimmer Holdings, Inc., NYSE: ZMH.
Enterprise Systems Enterprise Systems develops health care management software. Acquired by McKesson now McKessonHBOC, NYSE: MCK.
Evolving Systems Evolving Systems is a telecom software solutions vendor. NASDAQ: EVOL.
FormFactor FormFactor develops wafer-level test and packaging solutions for the semiconductor industry. NASDAQ: FORM.
Freightquote.com Freightquote.com provides online B2B freight solutions.
Frontstep Frontstep is an enterprise resource planning ("ERP") software provider. Acquired by Mapics, NASDAQ: MAPX.
Global Custom Commerce Global Custom Commerce is an online retailer of customizable products. Acquired by The Home Depot, NYSE: HD.
Good Technology Good Technology develops enterprise mobility solutions. Acquired by BlackBerry Limited (NASDAQ:BBRY).
HealthStream HealthStream is a content management for Internet-based continuing medical education. NASDAQ: HSTM.
HyPerformix HyPerformix provides predictive IT management. Acquired by CA Technologies NASDAQ: CA.
IDeaS IDeaS provides revenue management software. Acquired by SAS Institute, Inc.
Immobilien Scout Immobilien Scout is a German real estate portal. Acquired by Scout24 Schweiz AG (Deutsche Telekom), DB: DTE.
Integramed America IntegraMed America is a leading provider of infertility services. NASDAQ: INMD.
Internap Network Services Internap provides internet connectivity services. NASDAQ: INAP.
Interwave Communications Interwave develops micro-cellular networking equipment. NASDAQ: IWAV, acquired by Alvarion Ltd., NASDAQ: ALVR.
Intuitive Surgical Intuitive Surgical develops minimally invasive surgery systems. NASDAQ: ISRG.
Lionbridge Technologies Lionbridge provides localization services for the technology industry. NASDAQ: LIOX.
LoopNet LoopNet is a commercial real estate listing service. NASDAQ: LOOP.
Managed Health Network Managed Health Network provides mental health management services. Acquired by FHS, now Health Net, NYSE: HNT.
Marcam Marcam develops enterprise resource planning software. Acquired by SSA Global, NASDAQ: SSAG.
Medsite Medsite creates educational and promotional solutions for the health care industries. Acquired by WebMD, Nasdaq: WBMD.
Microgenics Holding Corporation Microgenics Holding Corporation provides diagnostics for drug testing. Acquired by Sybron, NYSE: SYB.
Milestone Healthcare Milestone provides sub-acute hospital management services. Acquired by HCR ManorCare.
National Healing Creates wound management solutions for hospitals. Acquired by MetalMark.
Nitromed Develops Nitric Oxide enhanced medicines. NASDAQ: NTMD.
OptiLink OptiLink is a digital loop carrier system. Acquired by DSC, acquired by Alcatel, NYSE: ALA.
PeopleClick PeopleClick provides human capital management software. Acquired by Authoria.
PeopleFirst.Com PeopleFirst.com is a provider of online automobile insurance. Acquired by Capital One Financial Corp., NASDAQ: COF.
Perceptive Software Perceptive Software provides document imaging and workflow software. Acquired by Lexmark International, Inc., NYSE: LXK.
Persistence Software Persistence Software provides dynamic caching and transactional servers for E-Commerce. NASDAQ: PRSW, acquired by Progress Software, NASDAQ: PRGS.
Plateau Systems Plateau Systems is an enterprise learning management software platform. Acquired by Successfactors, acquired by SAP, NYSE: SAP.
Polar Polar is a beverage manufacturer and distributer.
Precept Software Precept Software develops multi-media networking software. Acquired by Cisco Systems, NASDAQ: CSCO.
Quintiles Transnational Quintiles Transnational is a leading global contract research organization. NYSE: Q.
R2 Technology Develops computer aided diagnostic systems for use in radiology. Acquired by Hologic, NASDAQ: HOLX.
Rita Medical Systems Develops RF ablation devices for minimally invasive cancer treatment. NASDAQ: RITA - acquired by AngioDynamics NASDQ: ANGO.
Sendmail Sendmail is an internet mail platform with leading infrastructure solutions. Acquired by Proofpoint, Inc., NASDAQ: PFPT.
Sanmina Sanmina provides contract manufacturing solutions. NASDAQ: SANM.
Socialware Socialware is a social enterprise software provider. Acquired by Proofpoint NASDAQ: PFPT.
Solect Develops billing software for the communication industry. Acquired by Amdocs, NYSE: DOX.
SouthernCare SouthernCare is a provider of hospice services. Acquired by Kohlberg & Co.
SPSS SPSS provides statistical data analysis software. NASDAQ: SPSS, acquired by IBM, NYSE: IBM.
Suros Surgical Minimally invasive tissue biopsy device. Acquired by Hologic, NASDAQ: HOLX.
Tallán Tallán is an e-Services provider. Acquired by CMGI, NASDAQ: CMGI.
Tarari Tarari creates content inspection and acceleration solutions to improve network and application performance. Acquired by LSI Logic, NYSE: LSI.
Telcom Semiconductor Telcom Semiconductor develops linear and mixed-signal semiconductor devices. NASDAQ: TLCM, acquired by Microchip Technology, NASDAQ: MCHP.
The Medicines Company The Medicines Company is an outsourced drug development company. NASDAQ: MDCO.
U.S. Healthworks U.S. Healthworks provides workers' compensation health services.
Visioneer Provides image management software. Now ScanSoft, NASDAQ: SSFT.
Visiprise Provides a system to manage and control manufacturing process across an entire enterprise. Acquired by SAP, NYSE: SAP.
Websense Websense provides internet usage management software. NASDAQ: WBSN.
Yantra Yantra is an eBusiness software for managing high volume transactions. Acquired by Sterling Commerce a division of IBM, NYSE: IBM.
 
 
 
 
Portfolio Managers
Head of Expansion Capital
22 years industry experience
Managing Director
32 years industry experience
Managing Director
17 years industry experience
Managing Director
18 years industry experience
Executive Director
14 years industry experience
Executive Director
29 years industry experience
Vice President
8 years industry experience
Vice President
9 years industry experience
Investment Professional
Investment Professional
Investment Professional
Investment Professional
 
 
 
 

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.

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