Chillin' out till it needs to be funded
As NYT Dealbook reports, CAA got itself a big partnership with TPG Capital ( also sellers in Burger King, Texas Pacific, largest in Venture Capital till recently) and got itself a dedicated $500 milion for sports related ideas. Apart from IMG Worldwide in Sports that is a significant share of Creative Artists’ Business, its interests cover its traditional film and Tv strongholds from the last decade and before. Meanwhile nothing great has been heard about the facebook script of Andrew Sorikin on at theaters this week and emerging market entertainment businesses continue to make hot deals month on month. Double dip recession fears can finally be driven out by end of 2010 and PE is reaping the advantages of the same with larger bigger deals. Texas Pacific it self is worth $47 billion in assets managed.
Creative Artists Agency, the powerful talent and sports agency, said on Friday that it had sold a 35 percent stake in the company to the buyout firm TPG Capital, as part of its efforts to expand into lucrative new ventures.
As part of the deal, the two companies agreed to control a $500 million fund earmarked for future investments like sports-related businesses. Other terms of the deal were not disclosed, though people briefed on the matter said that the investment valued the agency at a maximum of about $700 million.
As part of the deal, three TPG professionals, including a co-founder, Jim Coulter, will join a restructured C.A.A. board. Other directors will include several of C.A.A.’s top partners and its in-house counsel.
The deal culminates a months-long search by C.A.A. for a financial ally to help boost the agency into new lines of business while strengthening its existing position in film, television, and music.
One of C.A.A.’s models is IMG Worldwide, which is owned by a private equity financier, Theodore J. Forstmann, and whose businesses include talent representation and production and programming.
IMG already consults on and sells the rights and sponsorships to major sports events like Wimbledon and the Australian Open. It also represents the likes of Major League Baseball, the Ryder Cup and the English F.A. Premier Football League.
Earlier this year, agency executives held talks with not only TPG, but also the investment firms Kohlberg Kravis Roberts, Providence Equity Partners and Ares Management, according to a person with direct knowledge of the discussions, who spoke on condition of anonymity because of the confidential nature of the discussions.
via NYT Dealbook