Investment funds managed by Morgan Stanley Private Equity Secondaries, through a vehicle managed by RunTide Capital, have completed an equity financing to finalize the merger between ATSG and Evolve IP. This merger aims to form a leading global IT managed services provider, serving over 1,700 customers worldwide with 950,000 end-users.

ATSG specializes in cloud technology, IT managed services, and cybersecurity. Evolve IP is known for its desktop-as-a-service offerings and unified communications. The merger is expected to enhance ATSG's service capabilities and improve the combined entity's ability to address complex technology challenges faced by customers.

Dan Wieder, Managing Director at Morgan Stanley Private Equity Secondaries, commented on the transaction: “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 initially invested in ATSG through a continuation fund transaction alongside RunTide Capital in January 2021.

Rob Manning, Partner of RunTide Capital, expressed his enthusiasm: “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.”

RunTide Capital focuses on building tech-enabled growth companies with founding partners who have deep operating experience as founders and executives of high-growth technology firms.

ATSG provides digital transformation services globally from its headquarters in Manhattan as part of RunTide Capital's portfolio.

Morgan Stanley Private Equity Secondaries is part of Morgan Stanley Investment Management's broader team focused on private markets solutions globally.

Morgan Stanley offers diverse financial services worldwide from its offices across 42 countries.