PE HUB Wire Highlights, 4.17.19


Photo of Luisa Beltran, PE HUB Senior Editor, courtesy of Buyouts Insider.

Silver Lake targets $750 mln for third tech-growth fund; Insight Partners puts E2Open up for sale; South Carolina seeks fee savings in co-investments, secondaries

Private equity is getting the blame for a fight between Hollywood writers and their agents.The Writers Guild of America, which represents 13,000 members, recently ordered its members to part ways with agents who didn’t subscribe to a revised code of conduct, the American Prospect reported.

Institutional investors, mainly PE, have invested in the three largest talent agencies:Creative Artists Agency (CAA), William Morris Endeavor (WME), and United Talent Agency (UTA), the story said. These three are responsible for 70 percent of WGA members’ earnings. TPG owns 53 percent of CAA while Chinese and Singapore sovereign wealth funds are also investors. Silver Lake Partners has invested $750 million in WME, which also has investors from sovereign wealth funds of Saudi Arabia and Singapore, as well as Tencent and SoftBankInvestcorpand PSP Investors own 40 percent of UTA, American Prospect said. (TPG recently acquired Entertainment Partners, a payroll and software company whose clients include several major studios and production companies.)

The tussle between agents and writers has to do with packaging fees and how talent agencies are serving both writers and the employers that use the writers. WGA believes this is a conflict, the American Prospect said.

While a strike isn’t expected, private equity is getting the blame for the problems, theAmerican Prospect said. “The top three agencies now operate under the pressure of private-equity-level profit expectations,” the story said.

Deals: Healthcare payment is big business. Yesterday we reported on FTV Capital’s plan to sell VPay, which could fetch $700 million. See the story here.

Now comes word that New Mountain is considering whether to sell Equian LLC, which could go for $3.5 billion, Bloomberg is reporting. Earlier this month, Sarah Pringle reported that New Mountain was weighing the sale of Convey Health SolutionsA winner of the Instamed process has yet to be announced.

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