WASHINGTON: Chicago-based private-equity firm Svoboda, Collins has taken an undisclosed stake in the Glover Park Group (GPG), the public affairs firm created in 2001 by several prominent Democratic campaign strategists.
With about $30 million in annual revenues and a staff of 65 based in Washington and New York, GPG has grown quickly since its inception, managing partner Chip Smith said, but the new cash infusion - worth "in the millions" - should facilitate easier geographical expansion, particularly in California and overseas, as well as possible acquisitions of other public affairs firms.
"This gives us the opportunity to operate smartly," Smith said. "As we get into fully integrated messaging, involving strategy and advertising, that requires size and scale. As we grow we may choose to enter new markets, and access to capital give us something that frankly is unique in this space."
A source at GPG said that a number of major holding companies have sought to acquire or take a stake in GPG, but that none had what the partners believed was a proper valuation for the firm or provided the opportunity for continued independence.
GPG's current partners will continue to oversee day-to-day management of the firm, though members of Svoboda, Collins will join the firm's board of directors.