MCI, a global engagement and marketing agency, has created an Association Investment Partner (AIP) program to help associations in need of funding to support and transform their events.
“We want to help associations that are struggling due to the pandemic with this unique offering,” said Shawn Pierce, president of Strategic Events, Meetings & Incentives at MCI USA. “Many are looking for outside sources of funding, particularly due to the pandemic and the inability to host a trade show or major event, which is a significant source of revenue for them.”
The principle is simple. AIP acquires a 20% stake in an association’s event and helps it rebuild with the help of MCI’s strategic event management services. The association retains its identity, ownership and control.
After five years, the association will have the option to buy back the 20% using the same valuation methodology as the initial investment. If MCI has been able to significantly increase the profit from an event, the buyback will be at a profit multiple slightly higher than that of the initial investment.
The $25 million investment fund was created by a private group of investors in Europe.
The MCI AIP Board of Directors is comprised of senior association and trade show executives. They are responsible for not only helping to identify investments, but also providing ongoing strategic advice to participating associations before and after investment. Members include Velma R. Hart, FASAE, CAE, COO, CSI – Construction Specifications Institute; Galen A. Poss, CEM, vice president, dmg event; Robin Lokerman, FASAE, CMM, CDO, MCI Group; Alessandro Cortese, CEO, ESTRO; and Kai Troll, president and CEO, AssociationWorld.
“The idea behind the AIP program is to create a true strategic partnership with an association,” Poss said. “Whether it’s rebuilding their reserves after the pandemic crisis or strengthening their operational infrastructure as part of a growth plan, or they have another clearly defined capital need, we want to create a relationship that makes business sense for the association and also for MCI. Best of all, the AIP allows us to invest in associations strategically, allowing us to leverage our capabilities to help restore events and keep associations focused on their core mission.”
Contact Shawn Pierce at shawn.pierce@mci-group.com or (972) 349-7320.