Security 101 taps Morgan Stanley to fuel next phase of growth

WEST PALM BEACH, Fla.—Security 101’s acquisition by Morgan Stanley Capital Partners marks a major endorsement of the company’s growth strategy, says Craig Shulman - and a notable first investment by the private equity firm in the security integration space.  

Shulman, CFO, says the deal is designed to accelerate the company’s organic growth and support continued mergers and acquisitions, while preserving its local, branch-driven operating model. 

“Very quickly, it became clear they weren’t just looking to invest in a strong security company,” he said. “They wanted to support our growth strategy and appreciated what we had already built.” 

A platform investment in security integration 

Shulman says Morgan Stanley did not have existing holdings in the security integration market, giving Security 101 a distinct position within its portfolio as a platform investment. 

“They saw us as their platform for security,” he said. “They looked at what was already in place - our national footprint, our execution across complex environments and where the business could go next.” 

That thesis was supported by Security 101’s increasing mix of national accounts and a localized customer base – a balance the company has worked to preserve as it scales, Shulman says. 

Capital priorities – organic growth first, M&A alongside 

While Security 101 has been an active acquirer, Shulman emphasizes that organic growth remains the company’s primary focus under new ownership. 

“First and foremost, it’s organic growth,” he says. “That means continuing to invest in sales talent and leadership. Sales drives everything.” 

Morgan Stanley’s backing, he notes, provides additional flexibility to pursue acquisitions -particularly larger targets - but does not fundamentally alter the company’s approach. 

“We would have continued to do M&A regardless,” Shulman says. “What Morgan Stanley enhances is scale.” 

Commitment to a branch-driven model 

A key point of alignment during negotiations, according to Shulman, was Security 101’s commitment to its branch-driven operating model, led by local general managers with end-to-end responsibility for customer relationships. 

Morgan Stanley, he adds, supported maintaining that structure rather than centralizing operations. 

“We are 100% committed to a branch-driven model,” he said. “That’s the best way to run a security integration business.” 

Impact on national accounts and competitiveness 

Security 101 already operates a national footprint through a mix of company-owned offices and former franchise locations. Shulman says the Morgan Stanley name adds credibility when competing for larger commercial customers. 

“When national customers see who’s backing us, it reinforces confidence that the capital will be there when investment is required,” he said. 

Why investors are targeting security integration 

From a broader industry perspective, Shulman says security integration continues to attract private equity due to its resilience and essential role for commercial customers. 

“It’s a recession-resistant business,” he says. “Customers still need to protect people, facilities and assets.” 

For customers and partners, Shulman says the impact is modest operationally. 

“It’s business as usual,” he says. “What’s changed is the validation that we’re building the right platform, and now it’s about execution – growing the right way and continuing to build the company we set out to create.”