Morgan Stanley Capital Partners, the private equity unit of Morgan Stanley Investment Management, just made another deal with a SaaS company, announcing it has completed an investment in Clarity Software Solutions, which makes software to enable healthcare providers to manage and distribute member data securely.
The investment, the size of which wasn’t disclosed, is part of Morgan Stanley Capital Partners focus on investing in outsourced service providers that offer what it views as best in class products and software that reduces pain points for clients.
The investment in Clarity marks the ninth platform investment for Morgan Stanley’s North Haven Capital Partners Fund VI and is the first healthcare investment for the fund. At the start of 2017, Morgan Stanley Capital Partners announced it had raised more than $1.5 billion for the North Haven Capital Partners VI fund, the successor to its North Haven Capital Partners V fund, luring some of the world’s biggest institutional PE equity investors.
“By focusing on middle market opportunities where the team has a distinct advantage to create and unlock value, we believe we are well positioned to deliver strong investment performance. Our capital raise exceeded its predecessor fund, underscoring the team’s successful track record and client demand for our differentiated offering,” Alan Jones, co-head of Morgan Stanley Private Equity said at the time.
The fund targets companies mainly in North America that are in the business to business services, consumer and industrial markets. The Morgan Stanley team goes after those companies that are in a unique position to add value through sourcing, are focused on operational improvements and/or has industry expertise and the right relationships. In announcing the investment from Morgan Stanley Capital Partners, Clarity founder, and chief executive Sean Rotermund said the company is entering a new phase of growth and with the backing of Morgan Stanley Capital Partners it can focus on broadening its market presence and enhancing its offerings.
Steve Rodgers, managing director of the firm, who joined last year to lead healthcare investments said he is excited to invest in Clarity and the team at the Madison, Conn. software company. “The company has developed an innovative product that addresses the complex process of member communications for today’s healthcare organizations and we look forward to working together to build on this growth,” Rodgers said in a press release in late January.
Prior to making the undisclosed investment in Clarity Software, Morgan Stanley Capital Partners invested in CoAdvantage, a human resources, and benefits provider for small and medium-sized businesses and 24 Seven, a maker of digital and creative human capital management services.
