July 15, 2015
Zeta Interactive Raises $125 Million From Funds Affiliated With Franklin Square Capital Partners And Blackstone’s GSO Capital Partners To Fuel Growth
NEW YORK, July 15, 2015 /PRNewswire/ — Zeta Interactive (Zeta), a big data and analytics company, which helps brands acquire, grow and retain customers, today announced that it has closed a $125 million round of financing from FS Investment Corporation (NYSE: FSIC), FS Investment Corporation II (FSIC II) and FS Investment Corporation III (FSIC III), business development companies (BDCs) advised by affiliates of Franklin Square Capital Partners (Franklin Square) and sub-advised by an affiliate of GSO Capital Partners LP (GSO), the credit platform of Blackstone (NYSE: BX). Under the terms of the investment, these BDCs will provide up to $125 million in a mix of debt and equity.
“Data, analytics and technology are transforming the marketing ecosystem,” said David A. Steinberg, Zeta’s Co-Founder, Chairman and CEO. “Zeta is uniquely positioned to capitalize on this major shift in how the world’s leading marketers acquire new customers and make the ones they already have more valuable. We are delighted to add GSO and Franklin Square as partners and to our shareholder base. We look forward to working closely with their team as we embark on our next phase of growth.”
Adds John Sculley, Zeta’s Co-Founder and former CEO of Apple Computer and Pepsi Cola, “This investment will help us attract and retain world-class talent, enhance our award-winning technology platform and sharpen our offerings for our Fortune 500 and middle-market clients. This funding is a testament to the great job David and his team have done to date, as well as an indication that even bigger things are still to come.”
Zeta will use the financing to enhance and expand its Gartner Magic-Quadrant-rated platform; grow its market penetration in the US and UK markets; and accelerate the company’s strategic acquisition strategy. Zeta has been an active acquirer in the Data, Analytics and SaaS-based technology sectors. In the past two years, the company has acquired the marketing automation platform pioneer, ClickSquared, and the Actions division of Adchemy Inc., along with its patented machine learning platform.
“Zeta is one of the most successful and fastest-growing companies focused on the big data and analytics space,” said Brad Colman, a GSO Capital Partners Principal. “This is a sector that we’ve watched closely and we are very excited about. We are committed to helping Zeta grow their business organically and through acquisition.”
“We invest in high quality middle market companies like Zeta,” said Michael C. Forman, Chairman and Chief Executive Officer of FSIC, FSIC II and FSIC III. “We look forward to working with Zeta’s first class management team and progressing the company’s already impressive growth track.”
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our anticipated strategic relationship with GSO and the Franklin Square funds, our expectations regarding expansion of our middle market lending and asset management activities, our ability to implement our accelerated growth strategy, access new origination channels and provide a broader set of financing options to our clients. All statements other than statements of historical fact included in this release are forward-looking statements. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, strategic plans, objectives, future performance, financing plans and business. As such, they are subject to material risks and uncertainties, including our ability to successfully execute on our growth strategy; the general state of the economy; our ability to compete effectively in a highly competitive industry; and the impact of federal, state and local laws and regulations that govern non-depository commercial lenders and businesses generally.
About Zeta Interactive:
Zeta Interactive is a leader in the data-driven marketing sector. The company uses Big Data, Analytics and Machine Learning to help brands acquire, grow and retain customers. Founded by David A. Steinberg and John Sculley (former CEO of Apple Computer and Pepsi-Cola) in 2007, Zeta Interactive’s set of Data, Email, Social, Display, Search and Mobile solutions are used globally by hundreds of Middle Market and Fortune 500 brands. With over 600 employees worldwide, the company is headquartered in New York City, with Centers of Excellence in Silicon Valley, London, and Hyderabad, India, and additional offices in Boston, MA; Boulder, CO; Detroit, MI; Scottsdale, AZ; Tampa, FL; Washington, D.C.; Middlesbrough and Bristol, UK. For more information, please visit: www.zetainteractive.com
About Blackstone and GSO:
Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with over $300 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.
GSO Capital Partners LP is the global credit and distressed investment platform of Blackstone. With approximately $75 billion of assets under management (as of March 31, 2015), GSO is one of the largest alternative managers in the world focused on the leveraged-finance, or non-investment grade related, marketplace. GSO seeks to generate attractive risk-adjusted returns in its business by investing in a broad array of strategies including mezzanine debt, distressed investing, leveraged loans and other special-situation strategies. Its funds are major providers of credit for small and middle-market companies and they also advance rescue financing to help distressed companies.
About Franklin Square:
Franklin Square is a leading manager of alternative investment funds designed to enhance investors’ portfolios by providing access to asset classes, strategies and asset managers that typically have been available to only the largest institutional investors. The firm’s funds offer “endowment-style” investment strategies that help construct diversified portfolios and manage risk. Franklin Square strives not only to maximize investment returns but also to set the industry standard for best practices by focusing on transparency, investor protection and education for investment professionals and their clients.
Founded in Philadelphia in 2007, Franklin Square quickly established itself as a leader in the world of alternative investments by introducing innovative credit-based income funds, including the industry’s first non-traded BDC. As of March 31, 2015, the firm managed approximately $15.7 billion in total assets, including $14.5 billion in BDC assets, making it the largest manager of BDCs. For more information, please visit www.franklinsquare.com.
FSIC is a publicly traded BDC focused on providing customized credit solutions to private middle market U.S. companies. FSIC seeks to invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market companies to achieve the best risk-adjusted returns for its investors. In connection with its debt investments, FSIC may receive equity interests such as warrants or options.
FSIC is advised by FB Income Advisor, LLC, an affiliate of Franklin Square, and is sub-advised by GSO / Blackstone Debt Funds Management LLC (GDFM), an affiliate of GSO. For more information, please visit www.fsinvestmentcorp.com.
About FSIC II and FSIC III
FSIC II and FSIC III are publicly registered, non-traded BDCs sponsored by Franklin Square. FSIC II and FSIC III focus primarily on investing in the debt securities of private companies throughout the United States, with the investment objectives of generating current income and, to a lesser extent, long-term capital appreciation for their investors. FSIC II and FSIC III are advised by affiliates of Franklin Square and are sub-advised by GDFM. For more information, please visit www.franklinsquare.com.