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Morgan Stanley makes majority investment in PEO CoAdvantage

October 08, 2015

Morgan Stanley Global Private Equity completed a majority investment in CoAdvantage Inc., one of North America’s largest professional employer organizations.

The private equity firm has been active in the staffing industry. In June, Morgan Stanley sold Creative Circle LLC to On Assignment Inc. (NYSE: ASGN) for $570 million in cash and equity. Morgan Stanley also sold EmployBridge this year to The Select Family of Staffing Companies for $410 million.

In the CoAdvantage deal, Morgan Stanley partnered with the current management team, who will remain in place and continue to drive organic and acquisition growth.

“CoAdvantage is a premier PEO in North America led by an impressive and deep management team,” said Morgan Stanley Managing Director Aaron Sack. “PEOs are becoming increasingly vital to small and mid-sized businesses that want to efficiently manage the growing administrative and regulatory complexity while maintaining a strong focus on their core operations.”

The PEO serves clients nationwide and is headquartered in Tampa, Fla. CoAdvantage ranks No. 7 on Staffing Industry Analysts’ 2014 list of largest PEOs.