Investcorp invests US$100m in SEC Newgate to accelerate strategies in APAC

Global alternative investment firm Investcorp has agreed to invest US$100m for a majority stake in SEC Newgate, a global strategic communications and advocacy group. This aims to help SEC Newgate accelerate its development strategy, with a focus on expansion in EMEA and the APAC region through both organic growth and M&A.

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 grown and expanded in the U.S. and Central and South America through transformational acquisitions. As part of this transaction, Nicola Ferraris will join the Board of SEC Newgate.

The transaction values SEC Newgate in excess of US$250 million. Three Hills Capital Partners and SEC Newgate’s other shareholders will roll over 100% of their equity investments as part of the transaction. The transaction remains subject to customary regulatory and other closing conditions.

The transaction is expected to close between the third and fourth quarter of 2023. Gattai, Minoli, Partners acted as legal advisor and Clearwater International as financial advisor to Investcorp, while Advant NCTM acted as legal advisor to SEC Newgate.

Commenting on the investment, Jose Pfeifer, head of Investcorp's European private equity group, stated: “SEC Newgate aligns with our investment approach to back strong, committed management teams operating differentiated businesses in growing sectors. We will use our resources to support SEC Newgate’s geographic expansion, growth through acquisitions and greenfield developments. We are excited to back SEC Newgate in the next phase of its growth journey and look forward to working with SEC Newgate CEO Fiorenzo Tagliabue and his team to bring to fruition many of the exciting opportunities that lie ahead.”

Meanwhile, Fiorenzo Tagliabue, who will remain CEO of SEC Newgate, stated: “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. Investcorp’s investment will accelerate our transformation and fuel our development strategy to achieve global leadership in corporate communications and public affairs. I would like to thank Three Hills Capital Partners for their support since our delisting and ongoing commitment to our business”.

Marco Anatriello and Michele Prencipe, Partners at Three Hills Capital Partners said: “We are grateful to SEC Newgate CEO Fiorenzo Tagliabue and his team for what they have achieved over the last 18 months. We are thrilled to remain invested alongside Investcorp and continue the journey.”

Headquartered in Milan, Italy, SEC Newgate is an insights and research-driven communications and advocacy group. It operates through 50 offices located in 22 countries around the world and advises more than 1,500 companies. It has expanded in the U.S. and Central and South America through transformational acquisitions. As part of this transaction, Nicola Ferraris, managing director at Investcorp, will join the board of SEC Newgate.

According to the release, Investcorp has invested more than US$1,900m in companies across Europe since 2012. Its current portfolio of Italy-based companies includes CloudCare, Vivaticket, Corneliani and HWG / Sababa Security.

MARKETING-INTERACTIVE has reached out to SEC Newgate for more information.

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