Morgan Stanley Capital seals first healthcare deal, backing Clarity Software

  • Added ex-J.H. Whitney exec Rodgers to lead healthcare
  • Partners with Clarity founder and CEO
  • Sell-side adviser: Triple Tree

Morgan Stanley Capital Partners clinched its first healthcare deal out of its mid-market fund, investing in Clarity Software Solutions.

The deal represents the firm’s ninth overall platform investment out of North Haven Capital Fund VI, which collected more than $1.5 billion in January 2017.

Clarity is the Madison, Connecticut, provider of software tools that help health insurers, third-party administrators and dental-insurance companies manage, streamline and customize member communications related to enrollment, claims and payments and compliance needs.

The firm is partnering on the deal with current management, including Founder and CEO Sean Rotermund, who will continue to lead the company.

For Morgan Stanley Capital, the investment comes about nine months after the firm brought on Steve Rodgers to lead a new healthcare effort for the platform.

Rodgers most recently led healthcare investing activities at New Canaan, Connecticut’s J.H. Whitney as a senior managing director and member of the investment committee.

Morgan Stanley Capital, part of Morgan Stanley’s about $10 billion Private Credit & Equity platform, has historically focused on business services, industrials and consumer products and services. Morgan Stanley Capital prioritizes founder-owned recaps and looks to create value through an operational-focused strategy.

While Clarity is the first healthcare-focused investment out of North Haven VI, the company aligns with the firm’s focus on outsourced services.

The fund previously backed professional employer organization PEO CoAdvantage and creative staffing agency 24 Seven.

Triple Tree served as financial adviser to Clarity.

Action Item: Contact Clarity at +1 203-453-3999