Highdive gets significant private equity investment as it looks to grow

Svoboda Capital, a Chicago-based private equity firm, has made a “significant” investment in independent agency Highdive. Both parties confirmed the investment but declined to share specific financial terms. Highdive will retain its independence. CEO Megan Lally, co-Chief Creative Officers Chad Broude and Mark Gross, along with Partner and Group Director Kaley Lambeth will maintain an undisclosed ownership stake in the business, Highdive said. Read about Ad Age’s 2024 Leading Women here Svoboda Capital and Highdive began discussing a potential deal in December, after being introduced to one another by advisory firm Spring Advisors. Highdive, which is also based in Chicago, was impressed with the firm given its expertise in partnering with agencies and service-based businesses, Lally said. Svoboda Capital’s portfolio also includes North Carolina shop The Variable, public affairs agency Bully Pulpit International and full-service advertising agency Marcus Thomas. Highdive doesn’t yet have definitive plans for the investment, but Lally noted “opportunities” to grow in areas including media planning, PR, production and AI. She said that national and international expansion are also “on the table.” “Anything we do won’t be for the sake of just adding revenue,” she said. “We’re going to look for what makes sense for our team and our clients.” Many mid-sized independent agencies have recently been seeking growth through mergers or partnerships with other shops to better compete with holding companies. Highdive “didn’t really” explore merging with another shop or being acquired by a holding company as the agency greatly values its independence, Lally said. In working with Svoboda Capital, “there are no expectations” to acquire or merge with other agencies, she added. “We make a significant investment, but we let the companies continue to run the business,” said John Svoboda, a managing director at Svoboda Capital. Svoboda highlighted Highdive’s “superb track record” as one of core reasons the private equity firm partnered with the agency. Read: How Highdive is moving beyond the Super Bowl This marks the latest in a series of private equity investments in ad agencies. Last year, Burrell Communications was acquired by a consortium led by Black-owned private equity firm FVLCRUM Partners and Channing Johnson, a Los Angeles attorney at Loeb & Loeb, through his investment company View Park Capital. In March, Chicago-based private equity firm Keystone Capital took a “slight majority” in the recently formed BarkleyOKRP.

Highdive gets significant private equity investment as it looks to grow

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