My Code, a company that provides solutions to brands that want to reach diverse audiences, has sold 58.5 percent stake to Project Black, a private equity fund that aims to create more minority-owned businesses.
The deal values My Code at $400 million and allows the existing shareholders, including Falfurrias Capital Partners, to retain a minority interest.
My Code was founded in 2015 as H Code, focusing on the U.S. Hispanic market. Since then, it has expanded its offerings to include Black, AANHPI, LGBTQIA+ and other communities. It has a network of over 1,200 consumer media platforms, as well as its own properties such as El Diario, Remezcla and Butaca TV. It has helped brands invest over $250 million in advertising spend to reach multicultural audiences.
Project Black is the private equity subsidiary of Ariel Investments, the first African American-owned mutual fund company in the U.S. It closed its inaugural $1.45 billion fund in February 2023 and has made three acquisitions so far. Its goal is to transform its portfolio companies into certified minority business enterprises (MBEs) and position them as leading suppliers to Fortune 500 companies.
My Code expects to leverage Project Black’s capital and network to grow its business and serve its clients better. Leslie A. Brun, the Co-Founder, Chairman & CEO of Ariel Alternatives, said that they chose to partner with My Code because of its passion for speaking directly to diverse audiences and closing the racial information and opportunity gap. Parker Morse, the Founder & CEO of My Code, said that they were proud of their partnerships and humbled by Project Black’s support.
The transaction was advised by Wilkie Farr & Gallagher, McKinsey & Company, Deloitte, Bridge House Advisors, Insight Sourcing Group, The Raine Group, Canaccord Genuity and K&L Gates.
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