Information on the Target

Create & Cultivate, LLC (C&C) is an experiential and digital media company based in Los Angeles, California. Founded and led by CEO Jaclyn Johnson, C&C aims to cultivate a community of ambitious women seeking to build fulfilling careers. The company delivers both in-person and virtual events that are tailored to the needs of career-focused millennial women, providing them with opportunities for networking, education, and personal development.

Since its inception, C&C has experienced rapid growth, largely driven by its unique service offerings and a strong commitment to customer satisfaction. Under Johnson's leadership, the team has expanded its digital presence, engaging audiences through high-quality content across various platforms including its website, social media, newsletters, podcasts, and a membership program. Additionally, the appointment of Neha Kumar as COO in 2018 has significantly bolstered the company's operational capacity.

Industry Overview

The media and marketing services industry in the United States has been undergoing significant transformation, particularly due to the rise of digital platforms. This shift has created an abundance of opportunities for companies like Create & Cultivate which focus on tailored experiences for niche audiences. The industry has seen a growing demand for content that resonates with millennial and Gen Z consumers, especially in the context of empowering women in their professional lives.

As businesses adapt to changing consumer preferences, there is an increased emphasis on community-driven engagement, with many organizations seeking to foster inclusive environments. This trend is particularly prominent in the women's empowerment segment, where there is a distinct market for platforms that cater to career-oriented women seeking support, mentorship, and networking opportunities.

The COVID-19 pandemic has further accelerated this digital transformation, as many organizations shifted to virtual formats. Create & Cultivate capitalized on this trend, hosting successful virtual events with substantial global participation. This evolution reflects the industry's adaptability and the necessity for businesses to innovate to meet the changing landscape.

With more women participating in the workforce, the demand for resources that support their professional aspirations has surged. As a result, companies focusing on women-centric content and experiences are well-positioned for growth in the current market.

The Rationale Behind the Deal

The acquisition of a controlling interest in Create & Cultivate by Corridor Capital is aimed at leveraging the company's robust growth trajectory and expanding its reach within a vital market sector. The partnership will enable Corridor to provide strategic, operational, and financial support, which is expected to accelerate the company’s growth in proprietary events, membership offerings, and digital media.

This transaction also highlights Corridor's commitment to investing in companies led by diverse management teams, particularly those with a mission to empower women in the workforce. By aligning with C&C, Corridor aims to enhance the company's capabilities and further its mission of supporting women in their professional journeys.

Information About the Investor

Corridor Capital is a private equity firm that focuses on growth equity investments in middle-market companies. This acquisition marks Corridor’s fifth platform investment from its Corridor Capital III, L.P. fund and underlines the firm’s proactive approach to investing in the marketing and media services sector. Corridor has a track record of identifying companies with strong leadership and growth potential, particularly those emphasizing gender diversity in their leadership structures.

The firm's founder, Craig Enenstein, has expressed strong support for Create & Cultivate and its mission. Over the years, Corridor has backed several successful firms led by women CEOs, which reflects their dedication to fostering women’s leadership in the business world. This investment is anticipated to bolster Corridor's reputation as a champion for women-led enterprises.

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Create & Cultivate's acquisition by Corridor Capital appears to be a favorable investment opportunity. Given the company's rapid growth and the increasing demand for resources supporting women in the workforce, C&C occupies a strategic position in a burgeoning market. The leadership team, led by Jaclyn Johnson, has demonstrated a clear vision and capability to expand the company's offerings, which bodes well for future success.

The deal not only underscores Corridor’s expertise in recognizing businesses with strong leadership but also aligns with the rising trend of investing in companies that prioritize diversity and inclusion. The support from True West Capital Partners highlights confidence in the company's potential, further reinforcing the validity of this investment.

Additionally, as more women seek mentorship and professional resources in light of the challenges posed by the pandemic, C&C is well-poised to meet this demand. The ongoing partnership with Corridor will enhance the company’s ability to deliver impactful content and experiences that resonate with its audience.

In summary, this investment partnership has the potential to yield significant benefits for both parties involved. By engaging focused efforts on empowering women, Corridor Capital and Create & Cultivate are likely to drive meaningful change in the industry and achieve sustainable growth in the years to come.

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