K Street merger yields new lobbying powerhouse

K Street Democratic firm Elmendorf | Ryan has merged with the public relations shop Home Front Communications to form a 70-person operation called Subject Matter.

The result is a lobbying and PR powerhouse primed to weather the ups and downs of the influence industry.

“With Subject Matter we’re not only looking at today’s public affairs challenges,” Steve Elmendorf said in a statement, “we’re thinking about what those challenges will be in 5 or 10 years.”

The two firms made the combination official on Monday, and will now begin working under the new name. In 2016, they will be working under the same roof.

“We believe the chemistry of our two firms is a perfect fit for a future that is driven by savvy political judgment, is content based, and is digitally oriented,” Elmendorf continued. “Most of all, we wanted to build something that is organized around integrated solutions and includes a complete range of services. That’s the firm we’re creating.”

The firm principals — Elmendorf and Jimmy Ryan of Elmendorf | Ryan, and Dan Sallick and Paul Frick of Home Front — have a long history in Washington, dating back to their time working together for then-House Democratic leader Richard Gephardt (Mo.).

“I have worked with all of them in the political trenches and each brings a unique set of skills and talents that build on one another,” said political strategist David Plouffe, now a senior adviser at Uber. “They will be a strong force in the market.”

While mergers between lobbying and PR firms were popular about a decade ago, the trend has largely subsided.

Since then, K Street has become populated with small-but-mighty lobbying shops — including the formation of the boutique Elmendorf | Ryan in 2006.

Ryan, who also worked for Senate Minority Leader Harry Reid (D-Nev.) and New York Sen. Charles Schumer (D), describes Subject Matter as a “26-year-old start-up.”

“We’re bringing more than a quarter century of combined experience in building a business around public communication and direct engagement,” he says, “but we’re approaching this with a fresh perspective and energy of a company that has just opened its doors.”

The new firm is also bringing in Debra DeShong, the former chief of staff to Caroline Kennedy, the U.S. ambassador to Japan. She will serve as an executive vice president and managing director for public affairs.

DeShong also has campaign and Capitol Hill experience, having worked for the presidential campaign of John Kerry, the Democratic National Committee and Rep. Steny Hoyer (D-Md.).

Elmendorf | Ryan has a slate of blue-chip clients, such as General Electric, Facebook, Ford, Goldman Sachs, Microsoft, MillerCoors, the National Football League, Time Warner, Pew Charitable Trusts, UnitedHealth Group and Verizon, among others.

The firm brought in $10.41 million in lobbying fees last year.

Home Front Communications, which was founded in 1998, represents foundations, nonprofits and trade group, corporate and government clients. It specializes in strategic communications, which includes targeted outreach and media strategy as well as branding and advertising services.

The new firm, Subject Matter, is expected to be a $25 million per year operation.

“Our new company has a clear mission,” Sallick says. “We want to help our clients make their subject matter to their most important audiences.”