TPG Launches Talent Management Business After Selling CAA Stake

The private equity firm's new company set its first investment in Jason Weinberg and Stephanie Simon's Untitled Entertainment

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TPG is getting back into the Hollywood talent business with the launch of a new firm, following the sale of its majority stake in Creative Artists Agency to French billionaire  François-Henri Pinault last year.

The private equity firm’s new company will “acquire, invest behind and build a diversified global business centered on talent management, representation and adjacent verticals,” TPG said in a statement Friday.

Michel Pratte, the former president of Boat Rocker Media, and Eric Taitz, Boat Rocker’s former executive vice president of corporate development and strategy, will serve as the new company’s CEO and chief operating officer, respectively.

The new company’s first investment will be in Untitled Entertainment, a Hollywood talent management firm led by Jason Weinberg and Stephanie Simon. TPG Growth, the company’s middle market and growth equity platform, is funding the investment. 

“As the broader entertainment industry continues to evolve, a more complex landscape means more opportunities than ever for ambitious talent and their representatives,” Pratte said in a statement. “The future of representation increasingly requires relentless proactivity combined with access to world class tools that drive innovation and growth. This new Company will empower Untitled and a future group of complementary talent-centric businesses to harness the extraordinary talents of diverse clients on their journey to achieving their highest career ambitions.”

The pair will continue to serve as co-CEOs and will each roll a significant financial interest into the new entity alongside Untitled’s current majority owner, Boat Rocker. 

“The teams at TPG and Boat Rocker share our belief that scaled offerings are the future of talent management and together, we are focused on building a management and representation business with expanded resources for managers and their clients,” Weinberg and Simon added. “With a broader ecosystem of relationships, shared services departments, better client management tools, and new avenues for collaboration, this partnership ushers in a new chapter for Untitled while maintaining the culture and mission that has guided us for many years. We are excited to build on Untitled’s strong momentum and for the many opportunities ahead.” 

As part of the sale of its stake in Untitled, Boat Rocker will receive 51.6 million CAD (about $37.7 million) in cash, which will be used to invest in owned IP, particularly in scripted television, premium documentary programming, and animation and its exploitation internationally, as well as pursuing strategic M&A opportunities. It will also receive 8.8% of the outstanding common equity in TPG’s new talent management company.

Pratte will also receive a transaction bonus from Boat Rocker in the form of cash and common equity in the company. The proceeds to Boat Rocker are net of Pratte’s transaction bonus.

Boat Rocker — which anticipates full year adjusted EBITDA of approximately $10 million in 2024 due to the United sale, continued delays in new content commissions, renewals, production and paid development impact the media and entertainment industry, and regular course timing fluctuations on deliveries — does not expect the transaction to have a material impact on its other business lines. The company has over $75 million in cash available for use and no corporate debt.

Boat Rocker’s titles include Prime Video’s “American Rust: Broken Justice,” AMC, AMC+ and BBC America’s “Orphan Black: Echoes,” Apple TV+’s “Palm Royale” and Netflix’s “BET,” which is based on the hit Manga series “Kakegurui.”

It also has documentaries including “Merchants of Joy” and the Sundance-premiering “War Game,” which will begin a theatrical release August 2nd through Submarine Deluxe.

Additionally, Boat Rocker is partnering internationally on co-productions and financing opportunities, such as Ireland’s Deadpan Pictures on “Video Nasty” and “Mix Tape” with Ireland’s Subotica and Australia’s Aquarius Films.

In addition to CAA, TPG’s other entertainment industry-related investments include DirecTV, Entertainment Partners, Fandom, Musixmatch, and Spotify.

Latham & Watkins LLP and Blakes, Cassels & Graydon LLP served as legal counsel to TPG. Venable LLP served as legal advisors to Weinberg and Simon. LionTree Advisors acted as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Stikeman Elliott LLP served as legal advisors to Boat Rocker. 

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