Fort Worth’s TPG takes controlling interest in Hollywood, sports powerhouse

A Fort Worth firm has gone Hollywood. Fort Worth-based private equity firm TPG, which already owned a big stake of leading entertainment and sports firm Creative Artists Agency (CAA) has increased its investment to hold a majority position. According to various reports, the transaction was about $225 million and gives TPG 53 percent of the agency that represents actors such as Brad Pitt, George Clooney and Jennifer Aniston, musicians Kelly Clarkson and Willie Nelson and sports figures such as the Dallas Cowboys’ Tony Romo.

TPG initially invested in CAA in 2010, acquiring a 35 percent stake. As part of the new deal, CAA’s management team will extend long-term contracts. “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,” according to a CAA statement. “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.”

TPG co-founder Jim Coulter said CAA is a unique investment. “CAA is an unrivaled industry leader, with an exceptionally talented and uncommonly stable management team,” he said. “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.” 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.