Investment funds managed by Morgan Stanley Private Equity Secondaries, through a vehicle managed by RunTide Capital, announced today the completion of an equity financing to consummate the combination between 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 IT managed services provider serving over 1,700 global customers across 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 interconnected and complex technology challenges.

Commenting on the transaction, Dan Wieder, Managing Director at Morgan Stanley Private Equity Secondaries, said: “We are thrilled to partner with RunTide Capital to support a transformational combination of two attractively positioned IT services companies. The combination creates a scaled platform with a best-in-class suite of solutions led by an experienced management team. ATSG has successfully executed on its multi-pronged approach to value creation since our initial investment in 2021. We are excited to use the continuation fund technology in novel ways to provide further support to an existing investment in a leading middle market platform backed by a highly specialized and aligned General Partner.”

Morgan Stanley Private Equity Secondaries investment funds invested in ATSG through a continuation fund transaction, alongside RunTide Capital, in January 2021.

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

About RunTide Capital:

RunTide Capital is a private equity firm focused on building tech-enabled growth companies. The Founding Partners are seasoned investors with deep operating experience, having started 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, delivering 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 tech-enabled growth companies.

About Morgan Stanley Private Equity Secondaries

Morgan Stanley Private Equity Secondaries, an investment team within Morgan Stanley Investment Management, seeks to deliver innovative private market solutions to a global client base. As part of a broader team of 250 dedicated private markets focused professionals, the secondaries business draws on decades of investment experience across private markets. With a focus on single asset GP-led transactions in developed buyout and growth markets, the team structures compelling opportunities within less efficient markets and has deployed $5.4 billion to 54 GP-led secondaries transactions as of June 30, 2024. For further information about Morgan Stanley Private Equity Secondaries, 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 around the world and $1.6 trillion in assets under management or supervision as of September 30, 2024. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide 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 further information about Morgan Stanley, please visit www.morganstanley.com.

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