Ft. Worth-based investment firm TPG Capital yesterday said that it "had taken a majority stake in Creative Artists Agency, further tying it to the business of representing movie stars and prominent athletes after first buying into the industry powerhouse four years ago," according to Michael de la Merced of the N.Y. TIMES. TPG will now "own over half of CAA," and the move is "the latest sign of the financial world’s continued interest in the agency business." CAA "has long sought to push into new business operations." Its sports representation unit is "one of its most successful divisions." CAA's current management "agreed to extend their contracts" as part of the deal with TPG (N.Y. TIMES, 10/21). DEADLINE.com's Mike Fleming Jr. reported the deal raises TPG's stake in CAA "from a 35% minority to 53% majority shareholder." A source said that TPG "is paying around" $225M in equity for that stake. There also is a plan to "borrow an undisclosed amount of debt as part of a transaction that will allow the agency to continue growing." It is "likely that CAA will also spread some of the proceeds around to its most valuable performers." TPG increasing its stake in CAA marks "the first time that agency is not majority-owned by its operating principals." Both CAA and its "major rival" WME now "count on sports for major pieces of their bottom lines" (DEADLINE.com, 10/20). In L.A., Daniel Miller notes TPG's initial investment in CAA four years ago "spurred growth of the agency's CAA Sports arm, which was started in 2006 and counts among its clients" La Liga club Real Madrid F Cristiano Ronaldo, Heat G Dwyane Wade and MLB Giants C Buster Posey (L.A. TIMES, 10/21).
