NEW YORK— Aug 22, 2016

Investment funds managed by Morgan Stanley Global Private Equity (collectively, “MSPE”) announced today that they have completed an investment in Pathway Partners Vet Holding LLC (“Pathway” or the “Company”). Founded by Dr. Jasen Trautwein in Austin, TX and led by CEO Shawn McVey, Pathway is a leading veterinary hospital owner and operator. MSPE is partnering with Dr. Trautwein, Mr. McVey and the management team, who will remain in place and retain a significant minority stake in the Company.

Pathway owns over 30 general and specialty veterinary hospitals, and, together with their talented veterinarians and staff, are dedicated to providing the highest and most ethical standard of patient care. Pathway seeks to be a partner of choice for veterinarians wishing to realize some personal liquidity while retaining a minority interest in a rapidly-growing and ‘vet-friendly’ holding company. The Company provides systems and processes to enhance productivity and improve medical services while maintaining the practice’s local culture and community identity.

Pathway and MSPE intend to grow meaningfully in the coming years through organic and acquisition-driven growth. Additionally, as part of the transaction, Pathway is acquiring a majority interest in Thrive, a new veterinary clinic concept focused on affordable and convenient care.

Aaron Sack, co-head of Morgan Stanley Global Private Equity, said, “We are excited for the opportunity to partner with Pathway. Morgan Stanley Global Private Equity has a history of investing in founder-owned companies in attractive industries. Dr. Trautwein and his talented leadership team represent one of the highest quality platforms in the fragmented yet consolidating veterinary services space.”

Gary Matthews, managing director and operating partner of Morgan Stanley Global Private Equity, added, “The Company’s strong culture and dedication to patient care have positioned Pathway as an industry leader. We look forward to collaborating with Pathway’s talented management team to drive organic and acquisition-fueled growth.”

Dr. Trautwein, founder of Pathway, said, “We are excited to partner with Morgan Stanley Global Private Equity and enter a new phase of growth. We are proud of the platform we have established and expect this new partnership to deliver significant value as we expand. Our unique value proposition combined with our unmatched network of relationships with leading veterinary practice owners makes Pathway the partner of choice in a rapidly consolidating marketplace.”

Shawn McVey, CEO of Pathway, said, “We have looked long and hard for the right partner and for us, Morgan Stanley Global Private Equity couldn’t be a better fit to help us grow.”

Debevoise and Plimpton LLP served as legal counsel for MSPE. Financing for the transaction was provided by Antares Capital, L.P.

About Morgan Stanley Global Private Equity

Morgan Stanley Global Private Equity, the middle-market focused private equity business of Morgan Stanley Investment Management, is a leading middle-market private equity platform that has invested capital in a broad spectrum of industries for over two decades. Morgan Stanley Global Private Equity focuses on privately negotiated equity and equity-related investments primarily in North America, as well as Europe and other regions and seeks to create value in portfolio companies primarily through operational improvement. For further information about Morgan Stanley Global Private Equity, please visit www.morganstanley.com/im/capitalpartners.

About Morgan Stanley Investment Management

Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 590 investment professionals around the world and $406 billion in assets under management or supervision as of June 30, 2016. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing investment banking, securities, wealth management and investment management services. With offices in more than 43 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.