Public Sector Pension Investment Board (PSP Investments) and Bahrain’s Investcorp have acquired a minority interest in United Talent Agency (UTA), a Beverly Hills, California-based talent and entertainment company.
No financial terms were released; however, Bloomberg reported the deal values UTA at about US$800 million. The company’s partnership group will continue to hold majority ownership.
Founded in 1991, UTA represents artists and content creators in motion pictures, television, music, digital, broadcast news, books, theatre, video games, fine art and live entertainment.
PSP Investments Head of Private Equity Simon Marc said UTA is “uniquely positioned to benefit” from transformative trends in the global entertainment and media industry.
UTA Announces Capital Investment from Investcorp and PSP Investments
EQUITY STAKES BY THE TWO LEADING GLOBAL INVESTMENT FIRMS WILL ACCELERATE UTA’S CHAMPIONING OF ARTISTS, CREATORS AND STORYTELLERS AND SUPPORT ITS CONTINUED EXPANSION INTO NEW AREAS OF BUSINESS
BEVERLY HILLS (August 7, 2018) — Leading global talent and entertainment company United Talent Agency (UTA) today announced that Investcorp and the Public Sector Pension Investment Board (PSP Investments) are now strategic investors in the company.
The minority stakes by the two global investment firms mark a major milestone for UTA as it has undergone substantial growth in recent years. This new influx of capital from Investcorp and PSP Investments will be used to accelerate this momentum, enhance UTA’s services, and continue to invest in resources to support its clients and colleagues in a time of change and innovation in content creation and distribution.
With a continued focus on its expanding core business of talent representation, and its reputation as a leading champion of artists and creators, UTA has more than doubled in size over the past five years to over 900 employees who work with and advise many of the most influential artists across entertainment, media, technology and major corporate brands. Over the past year, UTA has made acquisitions in the live speaking, electronic music, and e-sports and gaming businesses and has taken an equity stake in Core, recently renamed Industrial Media, which last year successfully relaunched American Idol.
Investcorp and PSP Investments join existing investor Jeffrey Ubben as UTA’s capital partners. Investcorp is a leading provider and manager of alternative investments, with more than $22 billion in assets under management and over 35 years’ experience investing globally across a diverse range of industries, including retail and consumer products, business services, technology, real estate, industrials and more. PSP Investments is one of Canada’s largest pension investment managers with assets under management of $119 billion USD as of March 31, 2018 invested across 75 industries and more than 100 countries.
UTA CEO Jeremy Zimmer and Co-Presidents David Kramer and Jay Sures led the process of choosing the new investors. Zimmer, who with UTA Chairman Jim Berkus and co-founder Peter Benedek, founded UTA 27 years ago, said: “This is a transformative event for UTA. There has never been a greater moment of change and opportunity in our industry for artists, creators and companies like ours. We were deliberate about finding the right investment partners who recognize UTA as a business that puts clients first, exemplifies a collaborative and diverse culture, and is focused long term on capitalizing on the unique opportunities that disruption and transformation provide. We found that in Investcorp and PSP Investments.”
David Tayeh, Investcorp’s Head of Private Equity, North America, stated: “We are thrilled to have the opportunity to support UTA’s leading franchise and partner again with PSP Investments. We believe UTA’s client-centric business model has strategically positioned the company to capitalize on the ongoing convergence of talent, content, distribution, and marketing. Investcorp has been impressed with UTA’s market position, the long-term growth it has enjoyed, and recognizes that its future success will be driven by the continued excellence of its partners in providing superior services for its clients.”
“The entertainment industry is experiencing tremendous evolution,” said Simon Marc, Managing Director and Head of Private Equity, PSP Investments. “As demand for high-quality content is greater than ever, UTA is uniquely positioned to benefit from the transformation in the sector. We are excited to partner with Jeremy Zimmer and UTA’s world-class management team and look forward to backing UTA in the next phase of its growth. We also welcome the opportunity to team up once again with Investcorp. Our investment in UTA is a great example of PSP’s ability to partner with top-tier entrepreneurs and like-minded investors.”
Since 2014, UTA has established market-leading positions in key areas, including the news and broadcast space (through its acquisition of N.S. Bienstock in 2014), music touring (through its acquisition of The Agency Group in 2015), live speaking (through the acquisition of Greater Talent Network in 2017), electronic music (through its acquisition this year of Circle Talent Agency) and esports and gaming (through its acquisitions this year of PressX and Everyday Influencers). It has also expanded its presence in its Los Angeles headquarters and operates offices in New York, Nashville, London and Miami.
Financial terms will not be disclosed, but UTA’s partnership maintains majority ownership and control of the company. The existing executive leadership team of Zimmer, Kramer and Sures, as well as Chief Operating Officer Andrew Thau will remain unchanged. UTA was advised on the deal by Moelis & Company and Skadden, Arps, Slate, Meagher & Flom LLP. Investcorp and PSP Investments were advised by Credit Suisse, Gibson Dunn & Crutcher, and Sidley Austin LLP.
Leading global talent and entertainment company United Talent Agency represents many of the most acclaimed figures across film, television, news, music, sports, theater, fine art, literature, video games, podcasts and other social and digital content. A passionate advocate for artists, creators and innovators, the company also is recognized in the areas of film finance and packaging, branding, licensing and endorsements. UTA is known for its dedicated digital media group helping clients— from A-list talent to Fortune 500 companies—capitalize on a rapidly changing entertainment, media and business landscape. The agency’s worldwide presence includes its Los Angeles headquarters and offices in New York, London, Nashville, Miami and Malmö, Sweden. Information about UTA can also be found by following the company on social media on Instagram, Twitter, Facebook and LinkedIn.
Investcorp is a leading global provider and manager of alternative investments, offering such investments to its high-net-worth private and institutional clients on a global basis. Led by a new vision, Investcorp has embarked on an ambitious, albeit prudent, growth strategy. The Firm continues to focus on generating investor and shareholder value through a disciplined investment approach in four lines of business: private equity, real estate, alternative investment solutions and credit management.
As at December 31, 2017, the Investcorp Group had $22 billion in total AUM, including assets managed by third party managers and assets subject to a non-discretionary advisory mandate where Investcorp receives fees calculated on the basis of AUM.
Since its inception in 1982, Investcorp has made over 175 corporate investments in the U.S., Europe and the Middle East and North Africa region, including Turkey, across a range of sectors including retail and consumer products, technology, business services and industrials, and more than 500 commercial and residential real estate investments in the US and Europe, for in excess of $56 billion in transaction value.
Investcorp employs approximately 390 people across its seven offices, including New York, London, Singapore and the Middle East. For further information, including our most recent periodic financial statements, which details our assets under management, please refer to our website, Twitter, Instagram and LinkedIn.
ABOUT PSP INVESTMENTS
The Public Sector Pension Investment Board (“PSP Investments”) is one of Canada’s largest pension investment managers with C$153 billion of net assets as at March 31, 2018. It manages a diversified global portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources and private debt. Established in 1999, PSP Investments manages net contributions to the pension funds of Canada’s federal Public Service, the Canadian Armed Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, Canada, PSP Investments has its principal business office in Montréal and offices in New York and London, its
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