TAIT announces equity investment from Goldman Sachs Alternatives' Private Equity Business

Rhea-AI Summary

On July 9, 2024, TAIT, a leader in live experiences, announced that Goldman Sachs Alternatives' Private Equity Business will acquire a majority stake in the company from Providence Equity Partners and other investors. The deal awaits regulatory approvals, and financial details were not disclosed.

TAIT's CEO, Adam Davis, noted that the partnership with Goldman Sachs will help the company expand its global reach and innovation capabilities. Goldman Sachs' expertise in media, entertainment, and technology will support TAIT's growth.

Goldman's Leonard Seevers expressed confidence in TAIT's potential for growth in the evolving entertainment sector. The TAIT management team will continue leading the company and remain significant shareholders.

Providence Equity Partners supported TAIT through significant growth and pandemic challenges over the past five years.

Positive

• Goldman Sachs acquiring majority stake may boost TAIT's financial and operational capabilities.
• Potential for TAIT to leverage Goldman Sachs' global platform and industry expertise.
• TAIT's management team remains, ensuring business continuity and strategic direction.

Negative

• None.

Insights

Financial Analyst

The acquisition of a majority stake in TAIT by Goldman Sachs Alternatives is a significant move that can potentially reshape the company's future trajectory. This deal, though financial specifics are undisclosed, suggests a strong vote of confidence in TAIT's business model and future prospects. From a financial perspective, such a majority acquisition typically means that Goldman Sachs sees substantial value creation opportunities and growth potential in TAIT. Investors should note that Providence Equity Partners has a history of nurturing high-growth companies and their exit likely indicates that their objectives have been met, positioning TAIT at an advantageous point for further expansion. This acquisition can also provide TAIT with more substantial financial backing, enabling them to invest more aggressively in technology and innovation – key drivers in the live experiences market. Importantly, Goldman Sachs' involvement can boost TAIT's credibility, open new revenue streams and potentially increase profitability in the long term. However, stakeholders should keep an eye on how the integration process is managed and any changes in strategic direction that may arise.

Market Research Analyst

The acquisition of TAIT by Goldman Sachs Alternatives could be seen as a strategic alignment with broader market trends. The live experiences and entertainment sector is experiencing rapid growth, driven by a post-pandemic surge in demand for live events and immersive experiences. Goldman Sachs' acquisition reflects a recognition of these secular tailwinds. By bringing their expertise in media, entertainment and technology, Goldman Sachs is likely to help TAIT expand its market presence and enhance its offerings. This move could further solidify TAIT’s leadership in delivering high-quality, large-scale events, potentially setting new industry standards. Retail investors should consider the strategic benefits of such an acquisition, including increased market reach and enhanced technological capabilities. However, they should also be aware of potential risks, such as the complexities of merging corporate cultures and the challenges of maintaining service quality during periods of rapid expansion.

Tech Expert

The partnership between TAIT and Goldman Sachs Alternatives is poised to unlock new technological advancements in the live event space. With Goldman Sachs' backing, TAIT can significantly enhance its technological infrastructure and innovation capacity. This could mean more sophisticated integration of digital and physical elements in event production, leveraging cutting-edge technologies like augmented reality (AR), virtual reality (VR) and advanced automation. These advancements can lead to more immersive and interactive experiences for audiences, setting TAIT apart from competitors. Retail investors should be excited about the potential for TAIT to pioneer new technologies and methodologies in the industry, which can drive growth and create competitive advantages. However, they should also consider the typical risks associated with investing heavily in new technologies, including the possibility of high costs and uncertain returns on investment.

Goldman Sachs to acquire majority stake from Providence Equity Partners and other existing investors

TAIT management team to continue leading company and remain significant shareholders

LITITZ, Pa., July 9, 2024 /PRNewswire/ -- TAIT, a global leader in live experiences, today announced that the Private Equity business at Goldman Sachs Alternatives ("Goldman Sachs") will acquire a majority stake in the company from affiliates of Providence Equity Partners ("Providence"), subject to obtaining customary regulatory approvals. Financial details of the transaction were not disclosed.

Adam Davis, Chief Executive Officer of TAIT, said, "Since its inception, TAIT has partnered with clients across the globe to bring visionary concepts to reality and create extraordinary live experiences. As we look to our future – where the digital and physical worlds seamlessly merge into bespoke, individually tailored events, we are thrilled to partner with Goldman Sachs. This collaboration will unlock new opportunities and reinforce TAIT's position as an industry leader in delivering culture-defining experiences. Goldman Sachs' network and expertise will enable us to grow our global footprint and offerings, empowering the company to better serve clients, drive innovation, and pioneer new technology."

For over 45 years, TAIT has been a trusted partner to some of the world's most influential artists, brands, and institutions. Working across live experience, brand experience, placemaking, and location-based experience markets, TAIT has created iconic productions and experiences in over 30 countries, all seven continents, and even outer space. Superbowl half-time extravaganzas, award winning theme parks, World Expo pavilions, Olympic Opening ceremonies and much more have been brought to life through their global multi-disciplinary team. Goldman Sachs brings a global platform, deep experience in the media, entertainment, and technology sectors and other value creation resources to support TAIT in its next chapter of growth.   

Leonard Seevers, Partner in Private Equity at Goldman Sachs Alternatives, commented, "We have been incredibly impressed with TAIT's differentiated solutions, passionate employees and long track record as a leading player in enabling live entertainment and experiences across the world. We are excited to partner with Adam and his team on their next phase of growth."

Simon Kubbies, Managing Director at Goldman Sachs Alternatives, added, "We believe that TAIT is exceptionally well-positioned to benefit from secular tailwinds as the entertainment space continues to grow in scale and complexity, and see tremendous value creation opportunities for TAIT as the company continues to broaden its technology offering and market coverage."

Scott Marimow, Managing Director at Providence, said, "We've appreciated our tremendous partnership with the TAIT team over the past five years. We believe that TAIT is an exceptional company that is essential to the live events sector. We're proud to have helped TAIT continue to grow through new services, geographies and end markets, successfully navigate the pandemic, and create lasting value for all stakeholders. We wish the company and their new partners well."

Adam Davis, Chief Executive Officer of TAIT said, "I believe Providence has been integral to TAIT's success. We thank them for their partnership and support in helping the company achieve incredible work."

Evercore and Jefferies LLC served as financial advisors and Weil, Gotshal & Manges LLP served as legal counsel to TAIT in connection with this transaction. Goldman, Sachs & Co. LLC and PJT Partners served as financial advisors and Simpson Thacher & Bartlett LLP served as legal counsel to Goldman Sachs.

About TAIT
TAIT partners with artists, brands, IP holders and place makers to bring culture-defining, never-before-seen experiences to life. With a legacy of innovation spanning over 45 years, TAIT has grown from pioneering in rock 'n' roll concert staging to setting the global standard for extraordinary live events and experiences through cutting-edge technology, precision engineering, and creative design. TAIT's 20 global offices have developed iconic productions and experiences in over 30 countries, all seven continents, and even outer space for renowned performers, theme parks, exhibits, and venues across the globe, including partnerships with Taylor Swift, Cirque Du Soleil, Royal Opera House, Nike, NASA, Bloomberg, Google, Beyoncé, and The Olympics. 

TAIT Media Contact:
Alice Murphy
AMurphy@kwtglobal.com
917.213.8402

About Private Equity at Goldman Sachs Alternatives
Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $450 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, hedge funds and sustainability. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs. The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets. The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world's leading institutions, financial advisors and individuals. Goldman Sachs has over $2.8 trillion in assets under supervision globally as of December 31, 2023. Established in 1986, Private Equity at Goldman Sachs Alternatives has invested over $75 billion since inception. The business combines a global network of relationships, unique insight across markets, industries and regions, and the worldwide resources of Goldman Sachs to build businesses and accelerate value creation across its portfolios.

Goldman Sachs Alternatives Media Contact:
Victoria Zarella
victoria.zarella@gs.com
212.902.5400

About Providence Equity Partners
Providence Equity Partners is a specialist private equity investment firm focused on growth-oriented media, communications, education and technology companies across North America and Europe. Providence combines its partnership approach to investing with deep industry expertise to help management teams build exceptional businesses and generate attractive returns. Since its founding in 1989, Providence has invested over $36 billion across more than 175 private equity portfolio companies. With its headquarters in Providence, RI, the firm also has offices in New York, London, Boston and Atlanta. For more information, please visit www.provequity.com

Providence Equity Partners Media Contact:
FGS Global
providenceequity@fgsglobal.com
212.687.8080

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SOURCE TAIT

FAQ

When did TAIT announce its equity investment from Goldman Sachs?

TAIT announced the equity investment from Goldman Sachs on July 9, 2024.

What stake in TAIT is Goldman Sachs acquiring?

Goldman Sachs is acquiring a majority stake in TAIT.

Which company previously held the majority stake in TAIT?

Providence Equity Partners previously held the majority stake in TAIT.

Who will continue leading TAIT after the investment by Goldman Sachs?

The current TAIT management team will continue leading the company and remain significant shareholders.

What are the expected benefits of Goldman Sachs' investment in TAIT?

The investment from Goldman Sachs is expected to help TAIT grow its global footprint, drive innovation, and enhance its service offerings.