Thoma Cressey Launches Marketing Services Play –

Private equity group Thoma Cressey Equity Partners in August formed FutureSource Communications to acquire marketing services firms. According to Lee Mitchell, a partner at the Chicago-based firm, Thoma Cressey has an investment commitment with FutureSource to provide the company with capital as potential acquisitions are identified, and the commitment could be as much as $60 million in equity.

FutureSource, with offices in New York and Toronto, will attempt to consolidate businesses specializing in advertising, branding, direct marketing, sales promotion, market research, public relations and interactive marketing.

Starting out, Mitchell said, FutureSource will be looking to acquire companies with at least $10 million in revenue, but will increase its target size once a few companies have been acquired. Mitchell said his firm eventually would like to see FutureSource reach revenue of several million dollars.

Michel Frappier is heading the effort as president and chief executive officer of FutureSource. Previously, he was president of the communications and marketing division of MDC Corp., a publicly traded marketing and specialty printing company. Other founding executives include Chief Financial Officer Paul Owsiany and Vice President of Business Development, Donald Bedard.

Mitchell said he sees two things that differentiate FutureSource from other marketing services companies. FutureSource is focusing on entrepreneurial companies and will allow the entrepreneurs and managers to retain substantial interests in their companies. FutureSource also will encourage its companies to share customers, introducing the customers to sister companies that offer the services they need.

Mitchell said FutureSource likely will close on its first acquisition by the end of the year.