Arun Sudhaman 03 Jul 2023 // 7:52AM GMT
LONDON — SEC Newgate has sold a majority of the firm to alternative investment firm Investcorp for approximately $100m.
The deal, which comes after SEC Newgate returned to private ownership last year, values the consultancy at more than $250m, after reporting $196m in fee income last year, as per PRovoke Media's Global 250 Ranking.
Three Hills Capital Partners and SEC Newgate’s other shareholders will roll over 100% of their equity investment as part of the transaction. Investcorp’s investment is expected to help SEC Newgate accelerate its development strategy, particularly in EMEA and the Asia-Pacific, via both organic growth and M&A. Investcorp MD Nicola Ferraris will join the board of SEC Newgate, while Fiorenzo Tagliabue (pictured) will remain CEO.
Since its delisting from the London Stock Exchange in March 2022 and the addition of Three Hills Capital Partners as minority shareholders, SEC Newgate has acquired US public affairs firm Global Strategy Group and LatAm consultancy Another. It is also actively seeking acquisitions in Asia.
“SEC Newgate aligns with our investment approach to back strong, committed management teams operating differentiated businesses in growing sectors," said Jose Pfeifer, head of Investcorp's European private equity group. "We will use our resources to support SEC Newgate’s geographic expansion, growth through acquisitions and greenfield developments."
Investcorp's investments in professional services and communications businesses include management consultants AlixPartners, strategic communications firm ICR, workforce management business PRO Unlimited (now Magnit), technology consulting firm Resultant, talent and entertainment company United Talent Agency, and business advisory firm CrossCountry.
Since 2012, Investcorp has invested more than €1.8 billion in companies across Europe. The investment in SEC Newgate follows previous investments in other Italian headquartered companies, such as Gucci, Riva and Dainese. Investcorp’s current portfolio of Italy-based companies includes CloudCare, Vivaticket, Corneliani and HWG / Sababa Security.
“We are thrilled to partner with Investcorp on this next chapter of growth given their significant expertise and track record of helping professional services businesses grow and expand internationally," said Tagliabue. "Investcorp’s investment will accelerate our transformation and fuel our development strategy to achieve global leadership in corporate communications and public affairs."