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France’s billionaire Pinault household has agreed to purchase a majority stake in Hollywood expertise supervisor Inventive Artists Company from personal fairness agency TPG within the largest transaction ever for the household’s holding firm, Artémis.
Particulars of the transaction weren’t disclosed, however Artémis, which has belongings value greater than $40bn in its portfolio together with a controlling stake in luxurious group Kering, will take an roughly 53 per cent stake in CAA from TPG, based on two folks with information of the scenario.
The expertise company has an enterprise worth of $7bn together with debt, the folks mentioned, and had gross sales, largely via commissions earned by brokers on its artists and sports activities stars, of about $1.7bn in 2022. Artémis would pay a a number of of 13 occasions earnings earlier than curiosity, tax, depreciation and amortisation for its stake, one of many folks mentioned, and the acquisition could be financed utilizing a mixture of money and debt.
The deal joins CAA and its roster of A-list stars with a number of the greatest names in luxurious.
The company represents Hollywood royalty together with Scarlett Johansson, Brad Pitt, Margot Robbie and Steven Spielberg. Expertise businesses depend upon sturdy private relationships between brokers and their shoppers, and the CAA management staff made “long-term commitments to proceed main” the company, the businesses mentioned in a press release.
Bryan Lourd, a superagent who represents Pitt, George Clooney and Johansson, shall be named chief government of the group when the deal closes. Lourd, Kevin Huvane and Richard Lovett would proceed main the company and stay co-chairmen, the businesses mentioned.
Nonetheless, there was no lock-up on brokers included within the deal, one of many folks mentioned, although most have non-compete clauses of their contracts.
“CAA’s distinctive perception, relationships, and entry throughout key sectors, mixed with their broadly regarded . . . collaboration and innovation, provides the corporate a formidable position in driving international alternatives for its numerous and culture-defining shoppers,” mentioned François-Henri Pinault, Artémis chief government.
Singapore sovereign wealth fund Temasek, which can be a shareholder within the expertise company, would roll over shares and doubtlessly add to its place, one of many folks added.
“Artémis’ curiosity in CAA is about geographic diversification . . . for a portfolio that has been largely European. CAA can be decorrelated from luxurious cycles, whereas nonetheless being in a enterprise they perceive that’s centered on folks and providers,” one of many folks mentioned.
The transaction is a brand new chapter for the Pinault household’s holdings, which have largely centered on the posh trade prior to now decade. The household controls Kering, one of many world’s largest luxurious group with manufacturers together with Yves Saint Laurent and Gucci, via Artémis.
TPG first invested in CAA in 2010, constructing a 35 per cent stake within the company at an about $1.1bn funding. 4 years later, it elevated the funding, shopping for extra shares for $225mn to spice up its possession to a controlling 53 per cent place.
In 2021, it thought of taking CAA public, however as a substitute created a continuation fund that allowed it to maneuver the funding out of an outdated fund raised in 2008 and maintain on to it for longer.
The brand new fund, which included buyers Goldman Sachs Asset Administration, ICG and Neuberger Berman, additionally raised new money for CAA to purchase company ICM Companions.
Pinault’s buy will present a big windfall to TPG and the continuation fund. TPG is promoting its controlling stake in full.
TPG had been keen to carry CAA longer and had not employed advisers to steer a sale course of, based on folks accustomed to the main points. It was suggested by legislation agency Ropes & Grey, whereas Artémis was suggested by Rothschild.
