Key Takeaways
- • Special, the Australian-New Zealand creative agency with eight international offices, announced an investment from New Zealand-based private equity firm Waterman Capital, with terms undisclosed and no acquisition strategy declared.
- • SI Global's 2026 Private Equity Insights Report found global business services deal activity fell 29% year-on-year and first-time platform investments dropped 48%, while APAC marketing services saw 31 PE and PE-backed transactions in 2025, up 15% from 2024.
- • Australia recorded 11 APAC marketing-sector transactions in 2025, a 57% increase, with almost half of APAC deals cross-border.
- • Waterman's prior record with Fusion5 (acquired 55% in 2021, sold to BGH Capital in 2024 with revenue up 92% to roughly $200 million) is cited as a precedent for a buy-and-build approach, though no such plan has been announced for Special.
- • The article frames PE-backed platforms such as Brainlabs, DEPT and MSQ as models for Australian and New Zealand agencies to become cornerstone platforms rather than acquisition targets.
Summary
Special's investment announcement with Waterman Capital, a New Zealand-based private equity firm, was described by SI Global director Julia Vargiu as notable for what it omits. The announcement emphasised independence, entrepreneurial leadership and global growth, but did not reference a private equity-backed acquisition strategy or any plan for Special to make acquisitions. Waterman becomes a significant shareholder alongside Special's existing partners, and the eight international offices of the agency will sit under a single global ownership structure. The investment terms have not been disclosed.
Vargiu places the deal in the context of private equity activity in marketing services. SI Global's 2026 Private Equity Insights Report, examining 80 PE firms, 300 platform investments and more than 600 bolt-on and follow-on transactions, found global business services deal activity fell 29% year-on-year. In APAC, SI Global identified 31 PE and PE-backed marketing-sector transactions in 2025, up 15% from 2024, with Australia accounting for 11 deals, a 57% increase. Vargiu notes these figures are modest and reflect publicly identifiable transactions only.
The article draws on Waterman's record with Fusion5, an Australasian digital transformation consultancy it acquired a 55% stake in during 2021. Under that ownership, Fusion5 completed seven acquisitions, with annual revenue rising 92% to roughly $200 million and headcount increasing from around 440 to over 700. Waterman sold Fusion5 to BGH Capital in 2024, with continuing management shareholders reinvesting part of their proceeds. The article notes Fusion5 operates in a different sector and that no similar plan has been indicated for Special.
Vargiu cites international examples of PE-backed agency platforms, including Brainlabs, DEPT and MSQ, and notes Australian agencies have frequently become bolt-ons to larger platforms, with SI Global advising on all four cited transactions. The article identifies founder considerations such as governance, retained equity, reverse due diligence on investors, and the timing of future liquidity events.
Vargiu places the deal in the context of private equity activity in marketing services. SI Global's 2026 Private Equity Insights Report, examining 80 PE firms, 300 platform investments and more than 600 bolt-on and follow-on transactions, found global business services deal activity fell 29% year-on-year. In APAC, SI Global identified 31 PE and PE-backed marketing-sector transactions in 2025, up 15% from 2024, with Australia accounting for 11 deals, a 57% increase. Vargiu notes these figures are modest and reflect publicly identifiable transactions only.
The article draws on Waterman's record with Fusion5, an Australasian digital transformation consultancy it acquired a 55% stake in during 2021. Under that ownership, Fusion5 completed seven acquisitions, with annual revenue rising 92% to roughly $200 million and headcount increasing from around 440 to over 700. Waterman sold Fusion5 to BGH Capital in 2024, with continuing management shareholders reinvesting part of their proceeds. The article notes Fusion5 operates in a different sector and that no similar plan has been indicated for Special.
Vargiu cites international examples of PE-backed agency platforms, including Brainlabs, DEPT and MSQ, and notes Australian agencies have frequently become bolt-ons to larger platforms, with SI Global advising on all four cited transactions. The article identifies founder considerations such as governance, retained equity, reverse due diligence on investors, and the timing of future liquidity events.
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