CAA Sells Majority Share

CAA has a new majority shareholder in private equity firm TPG.

TPG, which previously held a 35 percent minority stake in the firm, will raise that to a 53 percent majority stake for around $225 million in equity.

The plan also apparently includes borrowing an undisclosed amount of debt to help the agency continue growing and share the love with some of its top artists.

“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,” CAA said in a 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.”

This is the first time CAA has moved away from majority ownership by its principals, but the deal reportedly benefits them as well by including long-term extensions. The agency is currently valued above $1 billion with around $400 million in debt.