December 3rd 2023.
Ariel Alternatives, the private equity arm of Ariel Investments, has recently purchased a nearly 60% stake in the multicultural media and marketing services firm, My Code at an enterprise valuation of $400 million. Existing investors including the private equity firm Falfurrias Capital Partners, have retained a minority stake in the firm.
This acquisition is part of Project Black, a $1.45 billion inaugural private equity fund created by Ariel Alternatives to buy businesses that are and are not currently minority-owned, transforming them into certified minority business enterprises that can serve as suppliers of scale to Fortune 500 companies. This is the fund’s first acquisition in the marketing and advertising space.
Founded in 2015, My Code offers solutions to brands that meet the quickly growing need for multicultural marketing. It has a network of over 1,200 publishing partners that reach diverse audiences, including the 110-year-old El Diario, the U.S.’s oldest Spanish-language newspaper. By providing materials, My Code has gained differentiated access and insights to diverse consumer groups, including Hispanic and Black audiences.
Leslie Brun, co-founder, chairman, and CEO of Ariel Alternatives, expressed his enthusiasm for the partnership. “We chose to partner with a business that shares our passion for speaking directly to diverse audiences, ultimately closing the racial information and opportunity gap,” said Brun. “We will work hard to scale My Code by providing access to both capital and customers.”
This is the third acquisition for Project Black, and it is not done yet. The fund plans to pursue 6 to 10 middle-market platform companies with revenues between $100 million and $1 billion.
My Code will benefit from Project Black’s CPO Council, a group of Fortune 500 Chief Procurement Officers that provides data on supplier demand across sectors. The Council’s insights, among others from Ariel’s vast procurement network, will aid the Ariel investment team as it provides My Code with potential client introductions.
With its first purchase under Project Black, Ariel Alternatives acquired Sorenson, a top communications provider for people who are deaf and hard-of-hearing, in a deal reportedly worth $1.3 billion in April 2022. In another deal, Ariel Alternatives bought a 70% stake in the translation-services company CQ Fluency in May 2023.
Ariel Investments, No. 1 on the BE Asset Managers list, has about $15 billion in assets under management and is celebrating its 40th anniversary this year. Mellody Hobson, president and co-CEO of Ariel Investments, is also the co-founder of Ariel Alternatives.
My Code expects to leverage Ariel’s capital to invest in growth initiatives, welcome new diverse directors to its board, and benefit from Project Black’s CPO Council. This fresh acquisition enables My Code to drive growth through an alignment of interests with an investor that shares Project Black’s purpose.
Ariel Alternatives is looking to create scalable, sustainable minority-owned businesses with Project Black, and the purchase of My Code is a great step in their mission. With access to capital, customers, and expertise, My Code is well-positioned to meet the rapidly growing need for multicultural marketing.
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