Investment funds managed by Morgan Stanley Capital Partners (MSCP) have announced an agreement to sell Sila Services to the Private Equity business at Goldman Sachs Alternatives. Sila's management will continue leading the company and retain a significant minority stake. The financial terms of the deal remain undisclosed.

Sila, based in King of Prussia, Pennsylvania, is a provider of residential HVAC, plumbing, and electrical services across the U.S. Northeast, Midwest, and Mid-Atlantic regions. Since MSCP invested in 2021, Sila has grown through organic growth and strategic mergers and acquisitions.

Adam Shaw, Managing Director and Head of Business Services at MSCP, stated: "We are proud to have partnered with Jason Rabbino and the Sila team as they built an industry-leading residential services platform." He added that Sila has become a high-growth business in its sector.

Jason Rabbino, CEO of Sila, expressed pride in what the team accomplished with MSCP's support: "MSCP has been a highly value-added partner to the entire Sila team."

This transaction marks MSCP's first exit from the distributed field services sector. Since investing in Sila, MSCP has also partnered with businesses like Fairway Services and American Restoration.

The closing is subject to customary conditions including regulatory approvals. William Blair was lead financial advisor for Sila with Robert W. Baird & Co providing co-advisory support. Debevoise & Plimpton served as legal advisor to MSCP. Goldman Sachs & Co LLC was exclusive financial advisor with Weil, Gotshal & Manges LLP as legal counsel for Goldman Sachs.

Morgan Stanley Capital Partners is part of Morgan Stanley Investment Management which manages $1.6 trillion in assets globally as of September 30, 2024.