Houlihan Lokey Advises MSQ Partners

Houlihan Lokey is pleased to announce that MSQ Partners Limited (MSQ), a next-generation creative and technology group and portfolio company of LDC, has received a significant investment from One Equity Partners (OEP). OEP will become the leading shareholder, with MSQ’s senior management and LDC reinvesting as minority partners.

Founded in 2011 and headquartered in London, MSQ combines the best tech and creative capabilities into one multi-disciplinary offering to deliver against a client’s C-suite strategic priorities or delivered through engaging specialist stand-alone services through its 11 agencies. Since 2019, MSQ has grown EBITDA from £6 million to in excess of £20 million, made five acquisitions, rolled out its multi-disciplinary offering internationally, and doubled its team to 1,200 colleagues working across America, Asia, and Europe. Its client portfolio includes companies such as Unilever, Vodafone, Booking.com, The AA, Zalando, Vitality, CFA Institute, Reckitt, and Akzo Nobel.

LDC is a private equity investor and part of Lloyds Banking Group. The business has partnered with more than 675 management teams since 1981 and has a portfolio of more than 90 businesses across the UK. It has made investments across all major sectors of the UK economy in industries, including business services, consumer, healthcare, ICT, industrials, media, and technology. LDC is committed to investing in at least 100 businesses nationally over the next five years.

One Equity Partners is a middle-market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm seeks to build market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners. Since 2001, the firm has completed more than 300 transactions worldwide. It has offices in New York, Chicago, Frankfurt, and Amsterdam.

The deal will allow MSQ to accelerate its ambitious growth strategy with a focus on further international expansion, particularly in the US and Europe. MSQ is now set to benefit from OEP’s expertise in the digital tech sector and proven buy-and-build track record, with a number of potential add-on acquisitions already identified and under evaluation. The investment will also allow the group to build out its data-driven and tech-enabled model, which, combined with its stand-out creative capabilities, provides clients with differentiated, end-to-end solutions in today’s increasingly digital platform world.

Peter Reid, CEO of MSQ, said: “It’s been a highly successful four years at MSQ, and there is huge potential and ambition to do more to build on our capabilities and footprint to enhance existing client relationships, attract new business, and retain, develop, and grow our team. The structure of the deal and the players involved will give us access to greater resources to extend our global offering, invest in talent, technology, and services and position ourselves as the leading next-generation partner for the world’s leading and most ambitious brands through the continued successful integration of insight, data, technology, and creative.

We are really excited about the future ahead with One Equity Partners and are equally pleased that LDC is set to continue with us on this next stage of our journey.”

Houlihan Lokey acted as the exclusive financial advisor to MSQ and LDC, assisting in structuring and negotiating the transaction on their behalf while undertaking a comprehensive lender education process.