- Private equity firm Lake Capital has purchased London-based agency network Engine Group in an effort to begin building an agency-services holding company.
- Lake Capital co-founder Terry Graunke says of the deal, "Our thesis is that pre- and post- the Omnicom-Publicis merger and lack of completion, there's a real opportunity to create a middle-market player in the space."
- The private equity firm plans to roll its entertainment shop Trailer Park under the Engine Group umbrella and continue to purchase firms to build out a well-rounded portfolio for the holding company.
Grunke is correct that the lackluster outcome of the attempted Omnicom-Publicis merger certainly should be opening up doors for other holding companies to flourish. A mid-market firm might have better success holding it together because the numbers and size are more manageable. The acquisition already pulls a number of great agencies under the holding company umbrella.