ECI’s investment to drive expansion at Croud

Private equity firm ECI Partners has acquired a majority stake in digital marketing agency Croud, with bosses saying it will "accelerate the company’s growth" through acquisitions and organic expansion.

Founded in 2011 by Luke Smith and Ben Knight, Croud has grown into a leading global, full-service agency with offices in the UK, US and Middle East, working with clients such as Selfridges, Amazon’s Audible and Prime Video, and Nespresso.

Luke said: “We’ve achieved significant scale and success, whilst continuing to create brilliant opportunities for our people and deliver outstanding work for our clients.

“We’re delighted to be partnering with ECI for the next phase of Croud’s journey, maintaining our independence, while capitalising on new opportunities and innovation. 

“We were thrilled to return to the teams at OakNorth and HSBC, as well as have new support from Investec and Barclays on this transaction – the fact that so many financial big-hitters were willing to back us is a testament to the strength of our business and team.”

ECI’s backing will leverage Croud’s unique ‘Croud Network’ of over 2,900 specialists – known as “Croudies” – to drive further innovation and market reach.

The acquisition is supported by a £77.6 million club loan from OakNorth, in partnership with HSBC, Investec and Barclays, following an initial £34 million loan in May.

Rory Nath, investment director at ECI, added: “We were impressed by Croud’s digital-first strategy, investment in tech and AI, and commitment to talent, as demonstrated by its recognition in Campaign and Sunday Times’ Best Place To Work lists.

“The business has outperformed the market through its Croudie model, ensuring speed, scale, and efficient delivery for clients.

“We look forward to continuing to invest in the technology and people alongside Luke Smith and Ben Knight whose energy, focus and determination will help inspire the team to deliver our ambitious vision together.”

Stuart Blair, director of debt finance at OakNorth, added: “Croud is an excellent business that is defying the odds in a sector where many of its peers are struggling to maintain margins and retain clients, so it’s no surprise that it has secured the backing of such an exemplary investor in ECI.

“This funding package will be a key catalyst in enabling Croud to continue scaling and strengthening its reputation as a global leader in tech-enabled marketing for the foreseeable future.”

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