TPG Holds Majority Stake in Brad Pitt’s Management Agency

TPG, a leading global private investment firm with $66 billion of capital under management founded in 1992, holds a majority stake in Brad Pitt’s management agency.

In a reported $225 million transaction, TPG owns 53 percent of Creative Artists Agency, a sports and talent company based in Los Angeles. Its star-studded clientele includes actors such as Pitt and George Clooney, musicians ranging from AC/DC to Kanye West and sports stars including Dallas’ own Tony Romo.

TPG initially invested in CAA in 2010 when it bought a 35 percent stake worth a maximum of $700 million. As part of that deal, TPG and CAA agreed to jointly control a $500 million fund earmarked for future investments including sports-related ventures, the New York Times reported.

With the new deal, CAA’s current management agreed to extend long-term contracts with TPG.

It’s a signal that both companies are looking to expand their portfolios, the Times added. In the past few years, CAA has opened an investment bank and venture capital fund. TPG is looking to get deeper into sports and digital entertainment.

Source: Dallas Business Journal

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, TPG, Brad Pitt, Creative Artists Agency, Los Angeles, George Clooney, AC/DC, Kanye West, Dallas, Tony Romo, CAA, New York Times, Venture Capital, Venture Capital Firm, Venture Capital Group, Venture Capital Industry, Venture Capital Investment.


David S. Rose to Speak at Upstate Venture Capital Association Event

David S. Rose, a New York City-based serial entrepreneur and angel investor, will give a speech at The Upstate Venture Capital Association of New York (UVANY) Venture Forum on Thursday, October 16, event to be hosted by Marist.

The event marks the launch of Marist’s role as UVANY’s Hudson River Valley partner in spurring economic development in the region by facilitating venture and private equity investments.

The forum’s keynote address will be delivered by David S. Rose, a New York City-based serial entrepreneur and angel investor. Rose is the founder of New York Angels, an early-stage technology investment group and one of the world’s top ten angel funds. He is also the CEO of startup investing site Gust.com and has recently authored the New York Times bestseller, Angel Investing: The Gust Guide to Making Money & Having Fun Investing in Startups.

Source: Marist College

 

Tags: Venture Capital, Venture Capital Firm, Venture Capital Group, Venture Capital Industry, Venture Capital Investment, Venture Capital Investor, Venture Capital Fund, VC Funding, VC, David S. Rose, New York City, Serial Entrepreneur, Angel Investor, The Upstate Venture Capital Association of New York, UVANY, Hudson River Valley, New York Angels, Gust.com, New York Times, Angel Investing, Startup.


Social News and Entertainment Website Attracts $50M from Andreessen Horowitz

BuzzFeed, the social news and entertainment website known for producing advertising-sponsored “listicles” that go viral, received the amount of $50 million from venture Capital firm Andreessen Horowitz.

Chris Dixon, a general partner at the venture capital firm, said in a blog post that he would be joining BuzzFeed’s board. His arrival comes three months after Jon Steinberg said he would step down as president and chief operating officer.

Founded in 2006, BuzzFeed is among the top 10 most-visited news and information sites in the United States, joining the ranks of long-established media outlets such as CNN and the New York Times.

“BuzzFeed now reaches over 150 million people per month, is consistently profitable, and will generate triple digit millions in revenues this year,” Dixon said.

A person familiar with the company told Reuters in February that BuzzFeed expects revenue to double to $120 million this year.

Source: Reuters UK

 

Tags: Venture Capital, Venture Capital Firm, Venture Capital Group, Venture Capital Industry, Venture Capital Investment, Venture Capital Investor, Venture Capital Fund, VC Funding, VC, BuzzFeed, Andreessen Horowitz, Chris Dixon, Jon Steinberg, United States, CNN, New York Times.


Mark Nunnelly Retires from Bain Capital

Bain Capital’s longtime managing director Mark Nunnelly retired from the Boston-based private equity firm, person with knowledge of the matter told New York Times.

Mr. Nunnelly’s retirement took effect in January, when Bain began making investments from a new private equity fund, said the person, who was not authorized to speak publicly on the matter. Mr. Nunnelly, 55, will continue to serve on the boards of a number of Bain’s portfolio companies.

Private equity firms typically raise new funds from investors every few years, and each fund has a lifespan of about a decade, requiring a significant time commitment. In this case, Mr. Nunnelly chose not to sign up as an investor with Bain’s new fund, the person briefed on the matter said.

Bain finished raising the fund in April with $7.3 billion in capital.

Mr. Nunnelly, a graduate of Harvard Business School, joined Bain Capital in 1989 after working as a partner at Bain & Company, the management consulting firm from which Bain Capital was created. He previously worked in product management at Procter & Gamble.

Source: New York Times

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Bain Capital, Mark Nunnelly, Boston, Boston Private Equity, New York Times, Harvard Business School, Bain & Company, Procter & Gamble.


Washington D.C. a “Boom Town of the New Economy” says Richard Florida

Author of “The Rise of the Creative Class” Richard Florida mentioned that because of its wealth, education and growing technology sector, Washington’s economy could overtake Chicago and Los Angeles in some areas.

That brings us to Washington, D.C. As the urbanist Aaron Renn wrote recently, Washington is well on its way to becoming America’s “second city,” on track to displace Chicago and Los Angeles “in terms of economic power and national importance.” Greater Washington has had among the nation’s lowest rates of unemployment, the most-stable housing prices, and high overall job growth since the crash. A whopping 59 percent of all new jobs created there since 2009 have been high-wage jobs, second only to San Jose. The Washington metro area includes six of the 10 most affluent counties in the nation.

Other writers (notably the author of this New York Times Magazine piece) have attributed Washington’s growth to the rapid expansion of the federal government. Government contracting dollars spent locally, for instance, more than doubled from 2000 to 2010, reaching $80 billion.  Florida gave a nod to the federal government but mostly rejected that argument. Source

 

Tags: Venture Capital, Venture Capital firm, Venture Capital group, Venture Capital industry, Venture Capital investment, Venture Capital Investor, Venture Capital fund, VC Funding, VC, Washington, D.C., The Rise of the Creative Class, Richard Florida, Wealth, Education, Growing Technology Sector, Chicago, Los Angeles, Aaron Renn, San Jose, New York Times, New York Times Magazine.


Blackstone Group Solves I.P.O. Class Action Suit

A New York-based multinational private equity, investment banking, alternative asset management and financial services corporation The Blackstone Group L.P. has signed agreement to pay $85 million to solve a lawsuit presented by a group of investors that accused it of misrepresenting some investments ahead of its 2007 initial public offering.

The settlement was filed in Federal District Court in Manhattan on Wednesday and closes the door on a five-year legal battle with investors who contended that the firm misrepresented the value of three investments in its prospectus. Blackstone denied any wrongdoing or liability in the settlement.

By settling, Blackstone has avoided a securities class-action trial that was scheduled to begin next month. Shares of Blackstone rose 2 percent on Thursday, to $22.08.

In June 2007, at the peak of the private equity boom, Blackstone raised $4.1 billion in a share offering on the New York Stock Exchange with much fanfare. It was one of the first of a group of highly secretive private equity firms to go public, attracting the kind of media attention normally left for Hollywood movie premieres. Camera operators and reporters lined up at the stock exchange to cover the event, according to a New York Times report at the time.

“We may be witnessing the end of capitalism as we know it,” Tom Wolfe, the author of “Bonfire of the Vanities,” told CNBC, according to the report. Source

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Private Equity Boom, Investment Banking, Alternative Asset Management, Blackstone, The Blackstone Group L.P., Suit, Lawsuit, Federal District Court in Manhattan, New York Stock Exchange, for Hollywood, New York Times, Tom Wolfe, Bonfire of the Vanities, CNBC.


Louis V. Gerstner III, Son of Ex-IBM Chief Executive, Dies at 41

Louis V. Gerstner III, the son of the former chief executive of an American multinational technology and consulting corporation International Business Machines (IBM), died on Thursday at the age of 41.

He died after choking while dining in a restaurant, according to a paid death notice in The New York Times.

Mr. Gerstner served as president of the Gerstner Family Foundation, according to the death notice. The foundation had $94 million in assets as of 2011, according to a tax filing. Mr. Gerstner, “dedicated much of his adult life to providing educational opportunities to underprivileged children,” the death notice said.

Randall Whitestone, a spokesman for the Carlyle Group, the private equity firm where the elder Mr. Gerstner serves as a senior adviser, said that the Gerstner family had nothing to add beyond the death notice.

A graduate of Princeton University and Columbia Business School, Mr. Gerstner worked earlier in his career at the private equity firm Forstmann Little. He was a member of the Young Lions Committee of the New York Public Library.

His father, Louis V. Gerstner Jr., became chief executive of I.B.M. in 1993 and led a turnaround of the then-ailing technology company. Prior to joining I.B.M., he served as a senior executive at American Express and chief executive of RJR Nabisco. Source

 

Tags: Computer, Software, IBM, I.B.M, International Business Machines, Louis V. Gerstner III, New York Times, Mr. Gerstner, Gerstner Family Foundation, Randall Whitestone, Carlyle Group, Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity investment, Private Equity Fund, Fund of Fund, Princeton University and Columbia Business School, Forstmann Little, Young Lions Committee of the New York Public Library, Louis V. Gerstner Jr., American Express, RJR Nabisco.


How Tempting Are Investors for Startups in Downturn?

The following article describes how hungry investors are for startups in downturn.

Last week, Andreessen Horowitz co-founder Ben Horowitz wrote in Fortune that in the current climate for raising venture capital, startup founders should swallow their pride and embrace the “down round.” That is, founders running out of cash may need to raise more capital at lower valuations than in previous fundraising rounds:

“Hoping that the fundraising climate will change before you die is a bad strategy because a dwindling cash balance will make it even more difficult to raise money than it already is, so even in a steady climate, your prospects will dim. You need to figure out how to stop the bleeding, as it is too late to prevent it from starting. Eating s— is horrible, but is far better than suicide.”

Herewith, more musings on investors’ appetite for startups in peril from around the Web:

Wired’s Ryan Tate found fodder in Horowitz’s column, noting in a piece on the “screams of crushed startups” that Silicon Valley is walking into the business end of the Series A crunch. In recent years angel investing has increased, helping more startups launch. The pool of venture capital available to those companies hasn’t kept pace. Source

 

Tags: Startup, Startup investors, Andreessen Horowitz, Ben Horowitz, Fortune, Ryan Tate, Silicon Valley, Angel Investing, Angel Investors, Reuters, Felix Salmon, David Segal, New York Times, Erin Griffith, Steve Hogan, Tech-Rx.


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