Chemistry Secures Strategic Investment from Breakwater Management to Fuel Next Phase of Growth
Independent full-service advertising agency Chemistry announced today that it has received a significant investment from Breakwater Management LP, a Los Angeles-based private equity firm focused on investments in leading lower middle market companies in media and entertainment, marketing and tech-enabled services. Chemistry is known for its innate ability to build brands and solve complex business challenges by connecting culture, technology, media, and real-time insights. This investment will allow Chemistry to remain independent while fueling its next phase of growth, with capital to invest in services, talent, emerging technologies, organic expansion, and strategic acquisitions.
With 170 employees and offices in Atlanta, New York, Pittsburgh and Miami, Chemistry’s fully integrated capabilities span creative, production, strategy, branding, design, social, research and analytics, media, public relations, digital, web development, SEO, and tech solutions. The agency’s foundation of experimentation embraces the test and learn approach, creating a state of constant evolution and innovation. This has led to massive market share wins and high cultural relevance for clients including Coca-Cola, Comcast, Domino’s, Five Guys, Frontdoor, NFL, NBA, Netflix, Massage Envy, Kidde, Heineken, IHG Hotels and Resorts and CG Insurance. In the past three years, Chemistry has experienced +360% explosive growth.
“We built Chemistry by bringing together highly successful, entrepreneurially minded, independent organisations and leaders, and integrating them into one cohesive culture,” said Ned Show, founder and CEO. “I believe that our formula for success has worked so well because we’ve never lost sight of our focus on growth and independence. Breakwater is the perfect partner for our next phase, and this investment is an incredible opportunity to accelerate our mission to become the best independent agency in the country.”
Chemistry is committed to giving employees the opportunity to do the best work of their lives while living their best lives. This has led to an enviable employee retention rate of over 86%.
The agency’s unique collaboration ethos allows employees to seamlessly collaborate across disciplines, including its award-winning creative department; a full-service production arm, Test Tube Productions; a digital solutions arm, REACT; and a minority-led and certified Hispanic arm, Chemistry Cultura. The firm’s media division is a Premier Google Partner in the top 3% of agencies nationwide, lauded for its innovative media solutions as well as its proprietary programmatic platform, Media Catalyst.
“From the first time we met, we were impressed with Chemistry’s outstanding leadership, culture and thoughtful approach. In a sea of sameness, Chemistry is not afraid to be different or take on big challenges. This boldness has yielded phenomenal results for clients, and we’re excited to be the catalyst for the agency’s next stage of growth,” said Eric Beckman, managing partner, Breakwater Management. Jeff Goldstein, partner at Breakwater Management, added, “Chemistry embodies the key qualities we seek in a partner: visionary leadership, a collaborative and values-driven culture, and a track record of delivering transformative results for world-class brands. Their ability to blend creativity with data and technology makes them a standout in the market. We’re proud to support Chemistry as they build on this momentum and further scale the business.”
Canaccord Genuity served as exclusive financial advisor to Chemistry in this transaction. Terms were not disclosed; however, all Chemistry partners will retain ownership, and all leadership will remain in their current roles. Everyone will continue to do what they do best — connecting consumers and brands in meaningful ways that drive outsized results for clients.
