The Stagwell Group, a private equity firm that manages investments in new media and digital marketing services based in D.C., announced its fund, Stagwell Media LP, has invested $100 million in MDC Partners, Inc through the purchase of $50 million in MDC Partners common shares and $50 million non-voting convertible preference shares.
In connection with the closing of the transaction, Stagwell Group Managing Partner Mark Penn, pictured above, will join MDC Partners as Chief Executive Officer and a member of its Board of Directors. Mark will remain Managing Partner of the Stagwell Group.
“We believe MDC Partners has some of the best brands in the creative and marketing worlds,” said Stagwell’s Chief Investment Officer Jason Reid. “Combined with the management of Mark Penn, this strategic investment positions the company to thrive in an environment of accelerating change that still demands top talent.”
Since its founding in 2015, states a release, “Stagwell Group has made over 20 investments in digital marketing services and raised over $500 million to support its investment strategy. Stagwell’s portfolio of high growth companies include 2500 strategists across four categories: digital transformation and performance, public affairs and relations, research and insights and creative and storytelling.
“The MDC Partners investment is consistent with Stagwell’s strategy of investing in innovative digital marketing services companies.
“Stagwell’s existing portfolio includes performance marketing experts ForwardPMX, media innovator MMI Agency, healthcare and consumer experts SCOUT, research leader Harris Insights & Analytics, creative digital leader Code and Theory, strategic communications agency SKDKnickerbocker, telecommunications researchers HarrisX, entertainment research innovator National Research Group, public relations firm Finn Partners, communications agency Wye Communications, digital advocacy shop Targeted Victory, creative advertising consultancy Wolfgang, travel media leaders Ink, creative agency Observatory, online reputation management firm Reputation Defender and technology innovator Stagwell Technologies.”