Legend Capital invests in talent agency CAA's China unit
Legend Capital has taken an equity interest in the China unit of Hollywood talent agency Creative Artists Agency (CAA), having facilitated a merger with Momentum Sports, a sports marketing and consulting business in which it is an investor.
The venture capital firm, which has also committed new capital to the merged entity, said in a statement that the deal marked CAA China's official entry into the sports segment. It expects the combination of Momentum's local resources and operational capabilities and CAA's global coverage to facilitate the creation of a leading sports broking, agency, and marketing business.
CAA has been active in global sports coverage since 2006. It represents 1,700 leading athletes, coaches and media personalities, and provides various other services, ranging from arranging sports sponsorship to producing digital content. The company also consults for clients on sponsorship, media, and stadium design and operation.
CAA opened its China office in Beijing in 2005 and represents a range of Chinese stars including film director Yimou Zhang and Taiwanese supermodel Chi-ling Lin. Last year, China media-focused private equity firm CMC Capital Partners acquired a minority stake in CAA and established CAA China as a joint venture. The JV assumed control of CAA's existing operations in the country.
Founded in 2016, Momentum provides sports marketing, consulting and brokerage services. The company helped China Mengniu Dairy and Vivo Communication Technology become global sponsors of the 2018 football World Cup, and it has also worked with foreign clients such as BMW, Audi, and Nike.
There have been numerous financial and strategic investments in Chinese sports-related assets as part of a general trend towards developing media and entertainment content. Within the media and marketing segment specifically, SECA, Shankai Sports, and the sports unit of electronics retailer Suning have all received funding. The latter, which holds the domestic media rights to a range of competitions, raised a $600 million round last month.
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