Highdive has received a substantial investment from Svoboda Capital, a Chicago-based private equity firm.
While the exact financial details of the deal remain undisclosed, both parties confirmed the investment according to AdAge. Highdive’s CEO Megan Lally, along with co-Chief Creative Officers Chad Broude and Mark Gross, and Partner and Group Director Kaley Lambeth, will retain an undisclosed ownership stake and continue to lead the agency.
Strategic Growth and Expansion Plans
The collaboration between Highdive and Svoboda Capital began in December, facilitated by Spring Advisors, an advisory firm. Highdive was attracted to Svoboda Capital due to its experience in partnering with agencies and service-based businesses. Svoboda’s portfolio includes other notable agencies like The Variable, Bully Pulpit International, and Marcus Thomas.
With this investment, Highdive is exploring growth in several key areas:
- Media Planning
- Public Relations (PR)
- Production
- Artificial Intelligence (AI)
Additionally, Highdive is considering national and international expansion. Lally emphasized to AdAge that any growth initiatives will prioritize strategic benefits for both the team and their clients over mere revenue increase.
Maintaining Independence
Highdive has decided to maintain its independence rather than merging with another agency or being acquired by a holding company. Lally highlighted the agency’s commitment to independence and indicated that there are no expectations to merge or acquire other agencies under the new partnership with Svoboda Capital.
John Svoboda, a managing director at Svoboda Capital, praised Highdive’s impressive track record and affirmed that the private equity firm allows companies to continue operating independently.
Industry Context
This investment follows a trend of private equity involvement in advertising agencies. For instance, last year, Burrell Communications was acquired by FVLCRUM Partners and View Park Capital. In March, Keystone Capital took a majority stake in BarkleyOKRP. These moves reflect a broader industry trend where mid-sized independent agencies seek growth through mergers or partnerships to compete with larger holding companies.
Highdive’s strategic partnership with Svoboda Capital aims to leverage the firm’s expertise to drive growth while preserving the agency’s independent spirit and operational autonomy.
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