CAA is closing on a new arrangement with private equity firm TPG Capital that will raise TPG’s ownership stake from 35% to more than 50%. The talks, first reported by the New York Post, would mark the first time that the agency would be majority-owned by an outside firm. It passed from an original owner group that included Mike Ovitz and Ron Meyer to the next generation of CAA leaders that included Richard Lovett, Bryan Lourd, Kevin Huvane, David O’Connor and others.
TPG bought in to the agency four years ago, when it acquired the 35% stake. There would be no major changes. The extra investment allows for growth, and senior management to gain liquidity and to spread cash around to its most valuable agents. But TPG has allowed CAA to play its game so far and is expected to continue to do so.
This is unusual for a private equity firm, which usually invests and then looks for a quick return with an exit strategy. Talks could always fall through at the last minute, but this deal looks like it will make by Monday.
TPG has been aggressive in Hollywood as its TPG Growth is an investor in the new production company launched by Robert Simonds.