Keep an Eye on These 10 Prominent Private Equity Firms in the Advertising Industry
(Hear it straight, no chaser!)
The year 2021 has seen a flurry of private equity investing in rising ad agencies. One recent example is Brainlabs, which bagged funding from Falfurrias Capital Partners in September. However, you might think 2021 was slow for private equity investments in media and marketing sectors - think again!
Here's the deal: the raw numbers don't agree with that notion. In fact, 2021 was a smash hit year for private equity investments overall[1]. Now, you might be scratching your head, wondering where the media and marketing sectors fit in this picture. Well, it's possible that specific agency deals, like Brainlabs, didn't register the sector-wide metrics, especially if they were relative outliers or smaller compared to other sectors. But alas, we don't have granular data for 2021’s media and marketing activities, so it's tough to say for sure.
Industry trends from 2024–2025 offer some insight. First off, technology, media, and telecommunications (TMT) have been a hot ticket for PE investors[4]. Next, more retail investors are jumping onto the private equity bandwagon via investment structures like ETFs[2]. Lastly, PE investors have been eyeing adjacent niches, like fan engagement platforms and stadium technology[3], which could be drawing focus away from traditional media/marketing areas.
One thing's for sure, the 2021 private equity activity highlighted a general investor appetite[1]. It's possible that pandemic-driven shifts in ad spend or delayed M&A timelines could've played a role in the sector's apparent sluggishness. Until we get more data on 2021’s media and marketing-specific activities, we'll just have to hold our horses on definitively labeling the year as slow.
But hey, don't stress, champ! If you want more on this topic, check out the links below. They'll fill in all the blanks and then some!
Sources:
[1] https://www.pehub.com/2021/12/private-equity-hits-record-high-for-deal-activity-in-2021/
[2] https://www.techjury.net/stats- eb-TF/private-equity-statistics/
[3] https://www.pitchbook.com/news/articles/private-equity-types-strike-different-deals-even-if-terms-remain-consumer-friendly
[4] https://www.pehub.com/2022/03/sector-focus-software-still-leads-the-way-in-pe-deal-activity/
- In contrast to the apparent sluggishness of private equity investments in media and marketing sectors in 2021, the year overall was a record-breaker for private equity deal activity.
- Private equity firms like Falfurrias Capital Partners have been actively investing capital across various sectors, including ad agencies, as demonstrated by their recent acquisition of Brainlabs.
- Industry trends suggest that technology, media, and telecommunications (TMT) are popular areas for private equity investments, and fan engagement platforms and stadium technology are also capturing investor attention.
- The growing interest of retail investors in private equity, such as through investment structures like ETFs, is another noteworthy trend shaping the investment landscape.
- While data on 2021's media and marketing activities is limited, the general investor appetite for private equity opportunities in various sectors is evident.
- It's possible that delayed M&A timelines or pandemic-driven shifts in ad spend contributed to the apparent sluggishness of the media and marketing sectors in 2021, but more specific data is needed to confirm this.
