Private-equity firm Innovatus Capital just snapped up 3 ad agencies and said it wants to take on the big ad holding companies

<p><img src="https://static3.businessinsider.com/image/6050f073fe6a340019aceeed-2133/Brian Cohen_Headshot.jpeg" border="0" alt="Brian Cohen_Headshot" data-mce-source="Public Label and Match Retail"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>Private-equity firm Innovatus Capital has snapped up three midsize ad agencies in the past three months in what it said is a plan to take on big ad holding companies, such as Publicis, and upstart agencies.</p><p>Innovatus acquired Boulder's Public Label and Toronto's Match Retailwhose clients include Danone, L'Oral, Adidas, and Mars Wrigleyafter acquiring design agency VSA Partners, which is in Chicago, in January.</p><p>Innovatus founding partner David Schiff said he saw an opportunity to acquire ad agencies that were weakened by the pandemic.</p><p>Innovatuswhich had <a href="https://aum13f.com/firm/innovatus-capital-partners-llc">$1.6 billion in assets</a> in mid-2020 and previously invested in the real-estate, construction, and life-sciences industriesis expected to continue buying marketing companies "with conviction," Schiff said.</p><p><a href="https://www.businessinsider.com/private-equity-will-dominate-ad-industry-ma-analysts-say-2021-2">PE firms have poured billions</a> into marketing services over the past few years, and their influence is expected to continue as digital ad spending increases and newer agencies and software platforms pay off for investors.</p><p>Industry analysts believe M&amp;A activity will heat up this year as PE firms compete <a href="https://www.businessinsider.com/10-top-ad-agency-acquisition-targets-for-2021-2021-2">for agencies</a> with traditional ad networks <a href="https://www.businessinsider.com/martech-healthcare-consulting-wpp-advertising-holding-company-mergers-acquisitions-2020-10">such as WPP</a> and challengers <a href="https://www.businessinsider.com/you-and-mr-jones-ceo-explains-where-to-invest-2019-12">such as You &amp; Mr. Jones</a> and <a href="https://www.businessinsider.com/sir-martin-sorrell-names-agencies-s4-might-acquire-internal-memos-2020-5">Martin Sorrell's S4 Capital</a>.</p><p>Commerce and events-focused Public Label and Match Retail, which helps clients handle in-store marketing, formed when Match Marketing split in two in December.</p><p>Brian Cohen, the CEO of both Public Label and Match Retail, is expected to retain his title, overseeing around 200 employees at the companies. Terms of the sale from PE firm Southfield Capital were not disclosed.</p><p>Cohen told Insider that Match Marketing split to set its services apart and sold to Innovatus because it offered "more fuel" than Southfield. He said Innovatus' backing will help these agencies invest in machine-learning and artificial-intelligence tools rather than going the route of other advertising companies in acquiring data platforms.</p><p>"The private-equity relationship allows us to constantly be out there, scouring the market for larger-scale and smaller-scale investments so we don't let our own size and infrastructure be a hindrance," Cohen said.</p><p><strong>SEE ALSO:&nbsp;<a href="" ></a></strong></p><p><a href="https://www.businessinsider.com/private-equity-innovatus-capital-buys-two-more-advertising-agencies-2021-3#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/worlds-most-expensive-liquid-thoroughbred-horse-semen-2020-3">Why thoroughbred horse semen is the world's most expensive liquid</a></p>
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