Private Equity Firm Takes Over Your Agency: Post-Acquisition Strategy and Implications
Revamped Article:
The recent sale of R/GA by Interpublic Group (IPG) to private equity (PE) firm Truelink Capital is hinting at a potential surge in PE buying and investment in creative agencies, as per insiders' chatter in ADWEEK.
R/GA isn't the lone wolf in this game – other agencies have recently hit the PE market too. Last year, Svoboda Capital Partners took a bite out of creative agency Highdive, and Keystone Capital sank its teeth into Barkley, merging it with OKRP. Independent media agency Brainlabs also got a yummy investment from Falfurrias Capital Partners (FCP).
More PE deals are popping up in the adverse, such as FCP's investment in digital shop Said Differently, Shamrock Capital's (also owners of ADWEEK) stake in DE-YAN, an experiential consultancy, and Growth Capital Partners making a minority investment in a UK-based firm.
While there aren't recent, specific examples of private equity investments in creative agencies similar to R/GA's sale, private equity firms are making a splash in various sectors – areas that could overlap with creative agencies, including marketing and design services. Businesses like Bertram Capital are focusing on the industrial distribution sector and adopting strategies to support growth that could potentially be adapted to creative industries. Other PE firms like KKR are partnering with companies like Topcon to accelerate growth strategically – a model that could conceivably be applied to creative sectors. And, as digital content creation gains prominence, there's a growing interest in alternative investments, which might include creative and media companies. So, even though there aren't direct comparisons to the R/GA sale, it's evident that private equity firms are exploring diverse sectors and creative industries might be on their radar soon.
- Truelink Capital, having recently invested in R/GA, may be indicative of a trend where private equity firms increasingly invest in creative agencies.
- In a similar move, Falfurrias Capital Partners invested in independent media agency Brainlabs, demonstrating a growing interest in creative industries.
- Shamrock Capital, owners of ADWEEK, made a stake in DE-YAN, an experiential consultancy, showcasing that private equity firms are exploring diverse sectors, including those that could potentially overlap with creative agencies.
- KKR, a prominent private equity firm, partners with companies like Topcon to strategically accelerate growth, suggesting a model that could conceivably be applied to creative sectors, reflecting the growing interest in alternative investments in this field.
