Creative Artists Agency and Integrated Media Company, a division of private equity firm TPG, have joined forces to launch a new group called Compound Creative Holdings to acquire, operate and grow a portfolio of businesses in the creator economy space.

CAA and IMC, general partners and sole investors, are launching Compound with a combined $250 million and the ability to scale up from there. The new venture will partner with artists and entrepreneurs to provide “patient capital, operational infrastructure, and commercial edge,’ they said. The announcement comes as independent voices rooted in social media are reshaping entertainment, including the current theatrical explosion of Kane Parson’s Backrooms and Curry Barker’s Obsession.

Tucker Brown, an advisor to CAA and dealmaker in the creator content space, will lead Compound post-launch as Managing Partner with the company overseen by an executive committee comprising CAA leadership Kevin Huvane, Jim Burtson, and Maya Ho and IMC leadership Jon Miller, Ori Winitzer, and Ben Loffredo. CAA Creators agent Andrew Graham and CAA Strategic Development executive Adam Goldstein will serve as advisors. TPG launched IMC in 2018 to acquire and grow businesses across the digital media and creator economy.

“Compound brings together creative vision and financial resources to open doors to opportunities unlike any other,” said Huvane, co-chairman of CAA. “Creators around the world are building full-fledged media companies with direct audience connections and true ownership of their intellectual property. Compound is built to fuel that momentum and reflects our commitment to helping creators amplify their impact.”

The global creator economy is valued at more than $250 billion and is the fastest growing area in media and entertainment, projected to reach over $1.25 trillion in value by 2035, CAA says. Creators are evolving from an ad-dependent model to “fully investable enterprises,” diversified across multiple revenue streams and able to monetize audience equity through ownership sales, future revenue participation, structured financing, and other innovative capital strategies.

Its an ecosystem “rich with investment opportunity and capital formation has just begun,” says Winitzer, Managing Partner at IMC. “However, capital alone is insufficient, especially in this category. Our excitement is a function of both the secular opportunity and the benefits of approaching it with the world’s preeminent talent firm.”

The partners will leverage the combined resources of their respective platforms to support Compound, including CAA’s global network, commercialization engine, and deep relationships across the industry and with global brands.

Brown is an advisor to entertainment, sports and media companies at CAA Evolution and to the creator economy universe, facilitating transactions including Dude Perfect’s $100+ million growth investment and MeidasTouch Network’s recent investment from Soros Fund Management.

“Creators are no longer just talent, they are enterprise builders and increasingly operate with the scale and sophistication of established media companies,” he said. “Our goal is to provide the appropriate capital architecture and operational support necessary to help these businesses grow sustainably and capture lasting value.”

Compound will operate independently from but build on the exiting CAA Creators, which will continue under Brent Weinstein.

Get our Breaking News Alerts and Keep your inbox happy.

Comments On Deadline Hollywood are monitored. So don't go off topic, don't impersonate anyone, and don't get your facts wrong.

Δdocument.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() );