Morgan Stanley Private Equity and William Mitchell Announce Partnership

Morgan Stanley Private Equity has formed a strategic partnership with William E. (Bill) Mitchell, the former Chairman and CEO of Arrow Electronics, to acquire or invest in managed IT services companies. The goal of the partnership is to create a leading IT services provider focused on serving small and medium sized businesses (SMBs).

Mr. Mitchell retired from Arrow Electronics on January 1, 2010. He originally joined Arrow Electronics, Inc. as President and Chief Executive Officer in February 2003, and was named to the additional position of Chairman of the Board in May 2006. Mr. Mitchell led Arrow’s global expansion, and successfully acquired and integrated over 17 companies in the U.S. and internationally. Prior to joining Arrow, he led the successful growth of Solectron Global Services, the global services arm of Solectron Corporation, now part of Flextronics International. In four years, through a series of acquisitions, he led Solectron Global Services’ expansion from 3 sites and 350 employees into a global service organization with over 17,000 employees.

"SMBs serve as the engine of growth for the economy, and we believe their evolving IT needs are currently underserved in the marketplace,” said Mr. Mitchell. "Advances in technology have enabled the successful delivery of managed IT services to the SMB end-market, and I am excited to partner with Morgan Stanley Private Equity to invest in best-in-class companies to create the leading IT services provider serving SMBs.”

Jim Howland, an Operating Partner and Managing Director of Morgan Stanley Private Equity, said, "Bill is an exceptional leader with an outstanding track record in creating and building service oriented businesses. Morgan Stanley Private Equity has a history of collaborating with management teams to create long-term value, and we are delighted to partner with Bill on this new initiative.”

Morgan Stanley Private Equity, part of Morgan Stanley Investment Management's Merchant Banking Division, makes private equity and equity-related investments on a global basis. Morgan Stanley Private Equity utilizes Morgan Stanley's vast resources, including the Firm's global franchise and relationships with leading corporate management teams and financial sponsors, to source attractive opportunities for its investment funds. Morgan Stanley's roots in private equity investing date back to 1985 with the Morgan Stanley Capital Partners private equity funds. To date, Morgan Stanley Private Equity and its funds have invested nearly $7 billion of equity across a broad spectrum of industries. For further information about Morgan Stanley Private Equity, please visit www.morganstanley.com/privateequity.

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,300 offices in 42 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.