Entertainment deals driven by content, music catalogs and talent handlers | PE Hub

Private equity investing in the media and entertainment sector became more diversified in 2024 as dealmaking expanded beyond the traditional Hollywood content hubs, although the latter remained a prime enticement. Whether this was attributable to the “Hollywood contraction,” a term coined by entertainment trades and insiders to describe industry-wide job losses, salary cuts and fewer shows in production, can only be speculated. Yet even with these disruptions, dealmaking continued at a robust pace.

Here are three trends that drove PE-backed entertainment deals this past year and will likely continue in 2025.

1. Content is king

At the height of the covid pandemic, when most people stayed indoors during lockdowns, some private equity firms, such as Blackstone, leveraged the homebound trend with its media roll-up Candle Media, targeting production companies churning out content exclusively for streamers. However, as covid receded, entertainment fans began flocking to movie theaters in droves, as evidenced by stratospheric box office grosses for such films as Barbie in the summer of 2023 and the current release Wicked.

Yet, streaming content is still a draw. As a result, PE continues to gravitate toward multiplatform content creators.

A notable example was in early January when RedBird IMI, a joint venture between RedBird Capital Partners and International Media Investments, said it was making an undisclosed investment in Media Res, a Los Angeles-based TV studio and film production company. Founded by Michael Ellenberg, Media Res’ credits include the Emmy Award-winning Apple TV hit “The Morning Show.”

While publicly discussing the attractiveness of the target company, Redbird IMI chief executive officer (and former CNN president) Jeff Zucker hailed Media Res’ infinite creative possibilities.

“Media Res was a natural partnership for us as we continue to expand our presence across all forms of scripted, unscripted and children’s entertainment as well as news and information,” he said in a statement.

Two weeks later, Bruin Capital also got into the act when it inked an investment in Box To Box Films, a London-, Paris- and Los Angeles-based production company.

Founded in 2016 by Oscar-winning producer James Gay-Rees and Emmy-winning producer Paul Martin, Box To Box is the producer of the Netflix hit documentary series “Formula 1: Drive-to-Survive.”

Summing up Box to Box’s appeal “in this booming renaissance for intellectual property,” George Pyne, founder and CEO of Bruin Capital, lauded the production company for “being world-class storytellers.”

In mid-July, the insatiable appetite for content informed Shamrock Capital’s acquisition of a film, TV and music portfolio from Vine Alternative Investments Group. The portfolio includes more than 550 feature films, over 2,000 hours of television programming and over 450 songs.

When discussing Shamrock’s interest in the portfolio, partner Patrick Russo told PE Hub the firm is playing the long game when it comes to owning content.

“A lot of that is driven by the proliferation of technology that enables consumers to get access to content and rights owners, like us, to monetize that content in ways they weren’t previously able to do,” he explained.

2. Music catalogs from veteran or iconic recording artists reign supreme

Investing in music royalties and copyrights has become a popular trend in private equity over the past few years. A key reason for the sector’s appeal is its recession-resistant ability to provide stable cashflow amid a market downturn.

HarbourView Equity Partners and Pophouse were two firms that were especially active in this segment this year.

This past February, Pophouse made industry tongues wag when it acquired iconic recording artist Cyndi Lauper’s music catalog and master recording revenue. Included in the acquisition are hit songs “Girls Just Want to Have Fun,” “Time After Time” and “True Colors.”

Founded by ABBA’s Björn Ulvaeus and EQT founder Conni Jonsson, the Stockholm-based entertainment and music investment firm said the Lauper music catalog transaction was its first acquisition from an American artist as the company sought to expand into North America.

Two months later, in April, Pophouse made its second foray into the contemporary American pop music landscape when it scooped up the music catalog of another iconic recording artist – US rock band KISS. Also included in the deal valued at $300 million was the band’s brand name and likeness, as well as their trademark face paint designs.

In mid-August, HarbourView Equity Partners said it had acquired select producer royalties and music publishing assets of Noel Zancanella, a Grammy Award-winning record producer and songwriter, for an undisclosed sum. Among the popular recording artists Zancanella has collaborated with are Maroon 5, Ariana Grande, Demi Lovato, Adele and Smashing Pumpkins.

And, in late November, HarbourView made another notable acquisition when it snapped up Grammy Award-winning jazz guitarist and singer/songwriter George Benson’s master royalty income. A recipient of 10 Grammy Awards, Benson’s body of work includes 36 studio albums and eight live albums.

HarbourView’s music portfolio includes a catalog of about 31,000-plus songs across both master recordings and publishing income streams.

3. Betting on the talent handlers

In 2024, talent agencies were alluring targets for PE firms that saw in them opportunities for considerable growth and expansion. A high-profile example of this investment strategy was in early April when Silver Lake agreed to acquire Hollywood talent agency heavyweight Endeavor in a $13 billion take-private deal.

The acquisition capped off Silver Lake investing more than $3.5 billion in Endeavor across six distinct transactions over 12 years.

On the deal, Stephen Evans, managing director of Silver Lake and a director of Endeavor, said in a statement, “We are excited about what we can achieve together in this next phase, spearheaded by Endeavor’s visionary expertise across talent representation and content and ownership of truly special, marquee assets in sports.”

Among Endeavor’s top clients are Ben Affleck, Matt Damon, Christian Bale, Tom Cruise and Jennifer Lawrence. The company’s subsidiaries include the Ultimate Fighting Championship and the Miss Universe Organization.

In early July, San Francisco-based TPG, a veteran investor in the entertainment sector, said it was forming and funding a talent management and representation company, later named Initial Group. As part of this transaction, Initial Group was acquiring a stake in Untitled Entertainment, a Hollywood talent management business, from Boat Rocker Media for around $37.6 million.

In October, Presidio Investors generated chatter with its acquisition of creative talent agency The Only Agency. Based in Los Angeles, the firm represents makeup artists, stylists and photographers for celebrities like Christina Aguilera and Selena Gomez.

Speaking to PE Hub about the deal, Josef Auboeck, managing director at Presidio Investors, praised The Only Agency’s potential as a catalyst. “This investment reflects our confidence in their exceptional leadership and ability to set new standards for growth and transformation,” he said in an exclusive interview. “We’re excited to support The Only Agency’s CEO Kent Belden, and his team as they expand their influence and continue building momentum in the industry.”

PE Hub expects more entertainment deals to come in 2025.