4th March 2025
R/GA has become an independent agency again after 23 years under IPG management. With backing from private equity firm Truelink, it plans to create a new model. Green Square’s Barry Dudley looks at the deal.
I met Bob Greenberg around 20 years ago during my time at Naked Communications when we discussed how we may work with R/GA. I’ll never forget the unique nature of their New York offices, rabbit warren like, then opening out into big open-plan spaces with a very clear vibrancy and energy. And Bob struck me as someone who was always looking to the next thing, a mix of genius professor, visionary and quiet taskmaster. Almost certainly a rose-tinted perspective.
He is said to have commented, “I believe in reinvention. Every nine years, we reimagine the company.” Whether we are at one of these nine-year points, I’m not sure, but the next reinvention is clearly kicking off.
But before looking at this it is worth quickly considering a bit more history. It was founded in 1977 by brothers Robert and Richard, hence the original name R / Greenberg Associates, as a production company specializing in motion graphics and visual effects for film and television. Their work included creating visual effects for movies like Superman, and Alien; designing the iconic title sequence for Ridley Scott’s Blade Runner and developing digital effects for Predator.
Through the 1990s and early 2000s, its first reinvention took it into becoming a digital agency focusing on interactive and web-based experiences. It then expanded into interactive advertising and became a leader in integrating technology, data and digital experiences. Then came the natural move into consulting and business transformation.
Which brings us to current times and today’s announcement that management and private equity have bought the business out of IPG. So, the next chapter and reinvention begins.
R/GA’s press release announcing the deal said: “Creative innovation agency R/GA is proud to announce its return to independence as a privately owned company after 23 years as part of IPG, following a new partnership between R/GA’s global management and private equity firm Truelink Capital.”
IPG have been looking to sell Huge and R/GA for some time, with Huge subsequently being acquired by AEA Investors, a ‘global private investment firm’. Whilst there are undoubtedly big differences between Truelink Capital and AEA Investors, they are both private capital businesses. I expect to see plenty more of these sorts of transactions as the big holding company shakeout continues.
The release went on to say: “R/GA’s global CEO Robin Forbes and chair and global chief creative officer Tiffany Rolfe are two of the global leaders, together with others, who are investing in the company as part of the deal. R/GA’s next chapter will be fueled out of the gate by a $50M Innovation Fund, enabling the company to invest in new skillsets and talent, and acquire new capabilities, emerging tools and platforms. Additionally, R/GA has established a Strategic Advisory Council of senior marketing and technology executives to support emerging AI client transformation opportunities across multiple sectors.”
So, it’s going to have a $50m ‘Innovation Fund’. I really like the sound of these two words, not least because it fits with the R/GA legacy for reinvention. More than ever, businesses have to continually challenge themselves, question whether their offer is still relevant, experiment with new services, and innovate. When did you last work through such things? And who would you do this with – R/GA have a ‘Strategic Advisory Council’. If you don’t have one of those, I’m always around for the price of a coffee…
The next paragraph of the press release also throws up some interesting questions: “As an independent company, R/GA is activating an AI-enabled model to better serve clients [Are you genuinely AI-enabled?], unburdened by the restrictions and overheads of traditional corporate structures. New remuneration models based on outcomes [When did you last review your pricing?], agile new team structures, and scaling up its flexible talent model ‘R/GA Associates’, are among the initial changes being implemented [Is your organisational structure fit for the future?].”
As you would expect AI is marked out to be key. Luke Myers, co-founder and managing partner at Truelink Capital, said: “We see the growth of AI-enabled experiences playing an increasingly important role in unlocking value in marketing services…”
And Tiffany Rolfe said: “At R/GA change is a feature, not a bug, and we believe in the power of brands to transform – which is what we do for clients, and now we’re doing it for ourselves…”
I am looking forward to seeing this unfold and to seeing other businesses take similar steps.