The Wall Street guys are tightening their grip on Hollywood.
Private-equity firm TPG Capital is negotiating for a controlling stake in powerhouse Hollywood talent agency Creative Artists Agency (CAA), The Post has learned.
The talks between CAA, the No. 2 agency in size behind WME/IMG, and David Bonderman’s TPG are in their late stages, sources said.
A deal between the two — which would increase TPG’s stake to 51 percent from 35 percent — could be announced within the week, one source familiar with the talks said.
If no snags materialize, an agreement could be presented to key employees next week, the source added.
“They’re going to take the money and spread it around,” the source said. “There are people in comedy, movie and sports divisions who all feel they want to know what their future is.”
Like all negotiations before a deal is signed, they could still fall apart.
CAA, formed in 1985, represents scores of A-list Hollywood talent, including George Clooney, Tom Cruise, soccer star Cristiano Ronaldo and Cate Blanchett.
TPG’s first investment in CAA, in October 2010, valued the agency at $700 million and involved the creation of a $500 million joint-venture investment fund to expand interests in sports and tech.
The current talks involve TPG pumping more cash into CEO Richard Lovett’s CAA to unlock some end-of-year cash for its employee bonuses, sources said.
It would also put CAA on a path toward an initial public offering, according to sources — a route also being eyed by investors in Silver Lake-backed WME/IMG.
CAA’s main partners are Lovett, Bryan Lourd, Kevin Huvane and David O’Connor.
“They’ll take money out to use it to lure people to stay,” said the source.
There is certainly something buzzing around the Century City headquarters building — with a series of intense meetings between Lovett’s team and TPG this week, a second source noted.
TPG is definitely hoping for an IPO exit for its investment, people familiar with the talks said.
“There is no real easy exit as it stands,” the second source said. “ The thought is to buy it and build and do an IPO. TPG wants control of CAA to do it.”
Meanwhile TPG Growth, a division of TPG Capital, is one of the financial backers of the creation of a new movie and TV studio by producer Robert Simonds.
The studio has $1 billion in funds, its executives have boasted in several news reports.
China’s Hony Capital is also a backer of the yet-unnamed studio, according to reports.
TPG Growth also formed a separate entity, Evolution Media, an investment vehicle formed with Jeff Skoll’s Participant Media, with the aim of investing $350 million in entertainment assets.
TPG Growth also holds stakes in Uber, Airbnb, vRide, Fender, SuccessFactors, and SurveyMonkey, according to the company.
A TPG spokesperson declined to comment for this ctory. CAA did not return calls requesting comment.
