Friday, October 15, 2021

Digital Marketing and PE Intersection

https://www.knopnews2.com/prnewswire/2021/10/13/rlh-equity-partners-invests-leading-digital-marketing-agency-imre/

Working in the field of Private Equity focused in investments in the retail and consumer space in conjunction with having weathered through COVID, I have seen first-hand the substantial importance of digital marketing across all the portfolio companies at my private equity firm. The partners of my firm like to think that COVID pulled forward the massive growth of digital and e-comm by three to five years and in looking at the financials of our portfolio companies, e-comm is by far leading the growth in terms of the different channels further emphasizing the importance of having a digital strategy. Three years ago, most of our portfolio companies were just ramping up their respective e-comm presences and fast forward today, almost every one of our portfolio companies have a head of digital alongside a team. What I found interesting it the attached is how private equity is taking it one step further by investing directly in digital marketing companies. While I believe private equity firms including the one I work for tries to leverage synergies across portfolio companies, what better way to do so than to have a digital marketing company as a portfolio company?

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