Investment funds managed by Morgan Stanley Capital Partners (MSCP), the middle-market focused private equity team at Morgan Stanley Investment Management, have completed an investment in Fairway Lawns (Fairway). MSCP is partnering with the current management team led by CEO Kyle DeMilt, who will continue to lead the business.

Headquartered in Little Rock, Arkansas, Fairway is a market leading provider of residential lawncare services. The company, which operates 16 branches across the Southeast region, primarily provides recurring lawncare services such as weed control and fertilization, in addition to complementary services including pest control and tree & shrub maintenance. Fairway has grown into a leading platform in the industry through strong organic growth and strategic M&A.

Adam Shaw, Managing Director and Head of Business Services at MSCP, said: “We are excited to partner with Kyle and the Fairway team as they continue to work to build the company into the leading residential lawncare platform in the Southeast. For MSCP, Fairway represents an opportunity to execute on our core strategy of investing in focus sub-sectors where we have deep institutional knowledge and experience to drive value creation. We look forward to working together to advance the company’s market leadership position through organic growth and acquisitions.”

The investment in Fairway marks MSCP’s seventh investment out of MSCP’s $2.0bn Fund VII, which held its final closing in December 2021. This also marks Fund VII’s second investment in residential services, a focus sub-sector within MSCP’s Business Services efforts, following the acquisition of Sila Heating & Air Conditioning, a leading provider of residential replacement and maintenance HVAC, plumbing and electrical services, in May 2021. MSCP intends to accelerate Fairway’s add-on activity and will be seeking other leading residential lawncare brands throughout the country to help accelerate their growth, invest in their business, and support their employee base.

“For nearly 40 years, Fairway has consistently delivered best in class residential lawncare services to our customers, and we are thrilled to partner with MSCP on the next phase in our history,” said Kyle DeMilt, CEO of Fairway. “We look to leverage MSCP’s approach to operational excellence, as well as their experience completing complementary acquisitions to accelerate the expansion of Fairway’s capabilities and geographic footprint in the coming years.”

Debevoise & Plimpton served as legal counsel to MSCP, and Solomon Partners served as MSCP’s financial advisor. Carlyle Global Credit acted as sole administrative agent, bookrunner and arranger on the financing. Harris Williams served as financial advisor to Fairway.

About Morgan Stanley Capital Partners

Morgan Stanley Capital Partners, part 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 three decades. Morgan Stanley Capital Partners focuses on privately negotiated equity and equity-related investments primarily in North America and seeks to create value in portfolio companies primarily in a series of subsectors in the business services, consumer, healthcare, education and industrials markets with an emphasis on driving significant organic and acquisition growth through an operationally focused approach. For further information about Morgan Stanley Capital Partners, 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 1,200 investment professionals around the world and $1.4 trillion in assets under management or supervision as of March 31, 2022. 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 Fairway Lawns

Founded in 1979, Fairway offers a wide range of residential lawncare services, including weed control and fertilization, pest control, and tree & shrub maintenance. Fairway serves the Southeastern United States, operating out of 16 branches. For more information, please visit the Company’s website https://fairwaylawns.com.

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