Investcorp to take majority stake in PR firm SEC Newgate

Min Ho
03 July 2023

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Private capital investor Investcorp is to acquire Italy-based communications and advocacy firm SEC Newgate, pending regulatory and other closing conditions penned for Q3-4 2023.

The transaction will see Investcorp invest around USD 100m in exchange for a majority stake in the Milan-headquartered group and will value the company in excess of USD 250m, according to a statement. SEC Newgate's other shareholders will roll over "c. 100%" of their equity investment as part of the transaction.

The company's shareholders include Three Hills Capital Partners, which invested EUR 50m last January to fund the delisting of the group from the London Stock Exchange in March 2022.

The Bahrain-based investor set up its European Buyout Fund 2021 more than two years ago with a EUR 1bn-1.5bn fundraising target, according to Unquote Data. The strategy will target European buyouts, taking controlling stakes or substantial minority stakes in companies with EUR 10m-40m in EBITDA and high growth potential, which typically require equity investments of EUR 100m-200m.

Investcorp's investment will help SEC Newgate to accelerate its development strategy, with a focus on expansion in EMEA and the APAC region through both organic growth and M&A, it said.

Since the delisting, SEC Newgate has grown in the US and Central and South America through transformational acquisitions, it said.

As part of this transaction, Investcorp managing director Nicola Ferraris will join the board of SEC Newgate. Fiorenzo Tagliabue will remain in his role as CEO.

Investcorp has a history of investing in people-based professional services and communications businesses, it said, noting of its investments in management consultants AlixPartners, strategic communications advisor ICR, workforce management pioneer PRO Unlimited (now Magnit), technology consulting firm Resultant, talent and entertainment company United Talent Agency, and business advisory firm CrossCountry.

Company
SEC Newgate is an insights and research-driven global communications and advocacy group, headquartered in Milan, Italy. The SEC Newgate team, of around 1,200 employees, operates via 50 offices located in 22 countries around the world and advises more than 1,500 companies.

People
Investcorp - Jose Pfeifer (head of European private equity group).
SEC Newgate - Fiorenzo Tagliabue (CEO).