General Atlantic will become a minority shareholder in Red Ventures, an online marketing services company based in Indian Land, South Carolina. Founded in 2000, Red Ventures provides marketing services to satellite television and home security providers, as well as other brands across various industries. Financial terms of the transaction were not disclosed.
“We think there's just an enormous market opportunity for the kind of services that [Red Ventures] is providing,” General Atlantic managing director Anton Levy told PEO. “They spend a lot of time working with their customers to make sure Red Ventures acquires the right quality customer, and that these customers stick around for a long time.”
In addition to Red Ventures' South Carolina headquarters, the company has offices in Florida, North Carolina, Puerto Rico and Guatemala, and plans to expand to 1,100 employees by the end of 2010, more than doubling in size in 12 months.
General Atlantic, which last month joined Colony Capital in a $1.9 billion deal to buy a stake in US bank First Republic, focuses on investing growth equity and acquiring minority stakes in companies across a diverse range of sectors. The firm invests roughly $2 billion per year globally, and has an average investment size of over $200 million in 2010.
In addition to the media and consumer sector, General Atlantic invests in sectors such as healthcare; energy and resources; business services and technology and financial services. Founded in 1980, the firm has $15 billion in assets under management.