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BC Partners’ credit arm has bought a stake in the sports agency GSE Worldwide and agreed to finance the business’s expansion, in the latest push by a private investment firm into the talent agency industry.
BC Partners Credit has provided capital to the golf, tennis and football sports talent agency in the form of new preferred equity and debt, according to people briefed on the matter.
The valuation of GSE could not be learned.
The deal comes days after the US’s National Football League opened its doors to private equity investment. Interest in sports investment by alternative asset managers has also been growing. Earlier this year, private equity firm Silver Lake agreed to buy out the talent agency Endeavor Group, and France’s Pinault family bought a majority stake in Creative Artists Agency in late 2023 from TPG, valuing the business at $7bn.
Sports has been seen as relatively immune to the troubles facing the broader entertainment industry, since viewers are still willing to tune in to live events. That has lifted the valuations of sports media packages and, in turn, team values and salaries for top players.
The private equity industry has ploughed into sports in recent years, buying stakes and lending to teams including the National Basketball Association’s Golden State Warriors and San Antonio Spurs.
The investment by BC is in part a wager that top players will continue to mint lucrative contracts, and in turn generate commissions for GSE agents.
GSE is owned by London-based activist investor Gatemore Capital, which bought the US business of talent agency TLA Worldwide in 2018. GSE’s roster of athletes includes tennis player Sloane Stephens, pro golfer Bryson DeChambeau and DeMarcus Lawrence of the NFL’s Dallas Cowboys.
Ted Goldthorpe, who runs BC’s credit investment division, will join GSE’s board of directors.
The chief executive of GSE, Michael Principe, said the deal would give the firm capital to expand beyond the sports around which it has built its client roster.
“We are thrilled to have the additional support of BC Partners, which enables us to grow our industry-leading position, further enhance our offerings to clients and push into new verticals of talent and brand management and the ownership and operation of events,” he said.
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