MSD Partners’ Investment in West Monroe

Guggenheim Securities, LLC and Macquarie Capital acted as financial advisors to West Monroe. Katten Muchin Rosenman LLP, Mayer Brown LLP, and Polsinelli acted as legal counsel to West Monroe. Houlihan Lokey advised MSD Partners. Blackstone Credit and Owl Rock Capital provided financing for the transaction.

West Monroe, one of the fastest-growing digital consulting firms in North America, has entered into an agreement with MSD Partners, L.P. under which the investment firm will make a strategic investment in West Monroe. Chairman & CEO Kevin McCarty and the rest of West Monroe’s senior management team will continue to lead the company following MSD’s investment.

The capital investment from MSD Partners will support West Monroe’s strategy to establish itself as the leading digital consulting firm in North America and to expand internationally. In particular, the investment will be used to expand the firm’s global product development platform via acquisitions, to advance skill-building programs for West Monroe employees to provide world-class digital consulting services, and to drive enhancements to its offerings and Intellio suite of assets, among other strategic imperatives. 

Following the investment, which is expected to close in November, MSD Partners will have a 50% ownership stake in West Monroe. The leadership team at West Monroe will remain intact and the company will be jointly governed by a 50/50 split of representatives from MSD and the employee-owners of West Monroe.

West Monroe is a digital consulting firm with eight U.S. offices and 2,000 employees across the globe. Established in 2002, the firm has grown revenue at a 30% CAGR, outpacing the 10% to 12% average annual growth rate for consulting firms broadly.
 
MSD Partners pursues majority and strategic equity investments in situations where it can bring its unparalleled access to human and financial capital to support companies in their next phase of growth. 

The Katten team was led by Corporate Department global chair Kimberly Smith (Picture), and included M&A partner Joshua Feiger, Transactional Tax Planning partner Valentina Famparska, Corporate partner Michelle Gyves, Employee Benefits and Executive Compensation partner Andrew Skowronski, Intellectual Property partner Sean Wooden, Antitrust and Competition partner Jim Calder and Corporate associate Jessica Schauwecker.

Involved fees earner: James Calder – Katten Muchin Rosenman LLP; Valentina Famparska – Katten Muchin Rosenman LLP; Joshua Feiger – Katten Muchin Rosenman LLP; Michelle Gyves – Katten Muchin Rosenman LLP; Jessica Schauwecker – Katten Muchin Rosenman LLP; Andrew Skowronski – Katten Muchin Rosenman LLP; Kimberly Smith – Katten Muchin Rosenman LLP; Sean Wooden – Katten Muchin Rosenman LLP;

Law Firms: Katten Muchin Rosenman LLP;

Clients: West Monroe;

Author: Sonia Carcano