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TPG CAA Deal: Private Equity Firm Buys 35% of CAA

10/ 1/10 09:28 PM ET   AP

Caa Tpg

LOS ANGELES — Private equity firm TPG Capital has bought a 35 percent stake in Creative Artists Agency, one of the largest talent agencies in Hollywood and a powerhouse in representing athletes.

Financial terms weren't disclosed Friday.

CAA represents actors such as George Clooney, Brad Pitt and Meryl Streep as well as athletes ranging from New York Yankees' baseball player Derek Jeter to Real Madrid soccer player Cristiano Ronaldo.

The agency and the investment firm also pledged to create a $500 million fund for future investments. The firms didn't say if they will contribute to the fund or if it will be raised from third-party investors.

The amount would be available to the companies for joint ventures and is separate from TPG's investment in CAA.

TPG will gain representation on what will become a 10-member board. CAA's six managing partners also agreed to sign on for new multiyear deals. While those partners will cash out some of their stakes in the transaction, all of CAA's approximately 1,000 employees are to receive a bonus from the influx of capital.

TPG, with $47 billion under management, owns stakes in companies such as Burger King, Lenovo and Graphic Packaging Holding Co.

Two years ago, CAA partnered with former Merrill Lynch employees to create a venture called Evolution Media Capital LLC, which recently represented Hall of Fame pitcher Nolan Ryan and sports lawyer Chuck Greenberg in their successful bid to buy the Texas Rangers baseball team for $590 million.

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Filed by Billy Silverman  |