Ariel Alternatives, the private equity division of Ariel Investments, has acquired an approximately 60% stake in My Code from current investors, which includes the private equity firm Falfurrias Capital Partners and other shareholders. This transaction values My Code at $400 million based on enterprise valuation. The existing sellers will maintain a minority ownership in My Code.

According to its website, Ariel Alternatives, LLC, an affiliate of Ariel Investments, LLC, is a forward-looking asset management firm founded on a four-decade legacy. Their debut fund, Project Black, is dedicated to scaling sustainable minority-owned enterprises, positioning them as primary suppliers to Fortune 500 corporations to enhance supply chain diversity. This initiative encompasses investments in both non-minority-owned and existing minority-owned businesses, fostering a new wave of Black and brown entrepreneurs.

John W. Rogers, Jr. is the founder, chairman, co-CEO and chief investment officer for Ariel Investments. Ariel Alternatives was also co-founded by Mellody Hobson, who is also chairman and co-CEO and president of Ariel Investments. She is also the chairwoman of Starbucks Corporation. She is the former chairwoman of DreamWorks Animation, having stepped down after negotiating the acquisition of DreamWorks Animation SKG, Inc., by NBCUniversal in August 2016.

Project Black’s mission extends to bridging the racial wealth divide by creating jobs and stimulating economic growth in underrepresented communities. Impact initiatives encompass enhanced product accessibility for underserved demographics, diverse hiring from entry-level to executive roles, procurement from minority-owned vendors, and partnerships with civil rights organizations

Project Black’s acquisition efforts are ongoing, with plans to target six to ten middle-market platform companies boasting revenues ranging from $100 million to $1 billion, according to a press release.

Founded in 2015 as H Code and rebranded as My Code, the company has been trying to bridge the gap in media and advertising representation. Initially focused on reaching U.S. Hispanic consumers, My Code has expanded its offerings to include Black, AANHPI, LGBTQIA+, and other diverse audiences. With a network of over 1,200 consumer media platforms, My Code has played a pivotal role in helping brands invest more than $250 million in advertising spend to reach multicultural audiences.

Some of My Code’s owned and operated properties include El Diario, the oldest Spanish-language newspaper in the U.S., Remezcla, a prominent digital media brand for the Latine community, and Butaca TV, an advertising-based video-on-demand platform.

The My Code investment marks the third investment from Ariel Alternatives’ inaugural $1.45 billion fund, Project Black, which concluded in February 2023. Project Black’s overarching goal is to elevate portfolio companies like My Code into certified minority business enterprises (MBEs), positioning them as primary suppliers to Fortune 500 firms to promote increased business diversity in the U.S. and beyond.

John W. Rogers, Jr., Photo: Ariel Investments website, https://www.arielalternatives.com/person/john-w-rogers-jr/Mellody Hobson, Photo: X @MellodyHobson)