UPSTACK, an IT solutions company, secured $100 million in financing from MidCap Financial and Morgan Stanley Private Credit. MidCap Financial is the administrative agent, sole arranger and sole bookrunner for the financing, which UPSTACK will use to scale and expand its platform, which combines cloud and internet infrastructure advisors with proprietary software and support resources.
“This transaction further solidifies our position as the most financially sound and qualified investor in the IT channel,” Christopher Trapp, founder and CEO of UPSTACK, said. “Adding MidCap and Morgan Stanley Private Credit as capital partners strengthens our balance sheet and further enables UPSTACK to continue investing in the best and brightest businesses in our sector.”
“As more businesses that provide products and services in the $4 trillion IT industry continue to rely on indirect sales as primary go-to-market strategy, UPSTACK has proved highly successful at investing in some of the most well-established and fastest-growing brokerages in the industry,” Dave Crescenzi of MidCap Financial, said. “We have been impressed with the team and the stability of the businesses that UPSTACK continues to attract.”
“We are pleased to support UPSTACK on this transaction,” Sean Sullivan, managing director of Morgan Stanley Private Credit, said. “We’re confident UPSTACK will use this financing opportunity to further scale the revenue and profitability of its business.”
Berkshire Partners, UPSTACK’s lead investor, was a sponsor for the financing deal and worked with UPSTACK throughout the transaction.
“I want to thank the Berkshire Partners Capital Markets team for their support in reaching an agreement with MidCap and Morgan Stanley,” Trapp said. “Berkshire’s expertise in the data center, connectivity and managed services sectors and their ongoing guidance continue to make them an excellent partner for UPSTACK.”
