LOS ANGELES & SAN FRANCISCO (CelebrityAccess Mediawire) – Leading entertainment and sports firm Creative Artists Agency (CAA) and global private investment firm TPG announced that TPG has agreed to increase its investment in CAA to a majority position. The move deepens the relationship between the strategic partners and provides additional capital and resources for continued growth.
CAA’s management team will extend long-term contracts. In a statement, the firm said, “We are excited about expanding the ways we serve clients and taking advantage of countless new opportunities as technology, content, brands, sports and media converge. TPG is an invaluable partner in the ongoing execution of our plan, providing their vast business-building expertise, unparalleled global network, and ready access to capital for further growth. With TPG’s increased investment in our vision, we have never been more inspired by the possibilities that lie ahead.”
“There’s nothing like CAA,” said TPG co-founder Jim Coulter, whose firm has $66 billion of capital under management and initially invested in CAA in 2010. “CAA is an unrivaled industry leader, with an exceptionally talented and uncommonly stable management team. They have built their global and diversified platform through relentless innovation and a collaborative culture of client service. The Company has had extraordinary growth across its divisions, alongside intelligent asset-building and principal investment strategies, and we are enthusiastic about the continued success ahead.”
Recognized for its client roster of the world’s premier artists, athletes, and blue-chip brands, and its category leadership in packaging television and film content, and live experiences, the firm has also been the trailblazer of the agency business. CAA was the first to build a sports business, create an investment bank, launch a venture fund, found technology start-up companies, establish a presence in China and India, create a brand marketing services arm, and start a successful private equity vehicle, among other industry innovations.
CAA Sports has become the dominant athlete representation firm in the world, with more than double the on-field contract value of the next closest agency. Its more than 1,000 individual athlete, broadcaster and coaching clients include soccer icon Cristiano Ronaldo and NBA All-Star Carmelo Anthony. The firm’s sports business also includes more than $3 billion in precedent-setting property sales deals for clients including Madison Square Garden, Yankee Stadium, and FC Barcelona, among others. The sports division also advises corporate brands, including JP Morgan Chase and Emirates Airline, among others, on their sponsorship and activation efforts. Through Switzerland-based affiliate CAA Eleven, the firm manages the centralized broadcast, digital and sponsorship rights for more than 560 premier National Team Football matches in every region of the globe, on behalf of UEFA, European football’s governing body. CAA, in partnership with its affiliate investment bank Evolution Media Capital (EMC), which advises on transactions focused on the media and sports industries, has brokered billions of dollars in transactions for clients including the Los Angeles Dodgers, the Pacific-12 Conference, and the NHL.
The terms of the investment were not disclosed. The transaction is subject to customary closing conditions.
UBS and LionTree Advisors served as financial advisor to CAA. Wachtell, Lipton, Rosen & Katz served as legal counsel to CAA. Cleary Gottlieb Steen & Hamilton LLP served as legal counsel to TPG.