Private equity giant has just acquired a creator company, signaling the next phase of investment in this industry
Businessinsider
18m ago
Ai Focus
The creator economy is attracting the attention of private equity firms. H.I.G, which manages $76 billion in capital, has established a platform called Waveborn and is preparing to acquire creator economy companies, with the first deal being Jake Rosen Entertainment. H.I.G plans to continue with mergers and acquisitions involving brand collaboration, content production, and creator monetization, in order to build a larger creator economy platform.
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The creator economy is attracting the attention of private equity firms.

The investment giant, which manages a capital of $76 billion, H.I.G, Capital, has established a platform named Waveborn with the intention of acquiring creator economy companies. The first transaction targets the management company Jake Rosen Entertainment. This move was launched through H.I.G, under which there are H.I.G, Small-Cap, and Growth. The terms of the JRE transaction have not been disclosed.

The plan of H.I.G is to continue acquiring other companies on the basis of JRE, covering the core aspects of the creator economy ecosystem, including brand collaboration, content production, and creator monetization.

These companies did not disclose the scale of their funding, but they mentioned Whalar Group, stating that it represents the type and size of company they aim to build. Whalar once covered agencies, artist management, and internet celebrity technology companies, and was valued at $400 million in 2025. Later this year, it sold its agency business to Accenture Song.

The creator economy has seen rapid growth in recent years. According to relevant data, the growth rate of advertising spending in this field is four times that of the overall media industry, and it is expected to reach $44 billion in the United States this year.

Entering this field reflects that financial giants are increasingly recognizing the potential of the creator economy. It also indicates that financial buyers are driving industry expansion through strategic mergers and acquisitions, rather than waiting for the industry to grow to a sufficient scale on its own.

H.I.G. Growth General Manager Eric Tencer stated that the data from IAB as well as his personal experience have collectively strengthened his confidence in this field.

"I have a freshman in high school and a seventh-grade student at home. I've been in a losing battle constantly, asking them 'why don't you watch normal TV or movies?' But they just go to watch TikTok and Instagram instead," he said.

H.I.G and Capital believe that the corporate ecosystem providing services for brands and creators is still fragmented, while creators are building increasingly complex companies that require more professional capabilities. Tencer states that H.I.G. The reason for choosing an artist management agency as their first acquisition is that they believe placing creators at the core will help to define the future growth roadmap. The company plans to continue acquiring more businesses to complement or integrate them into its system, in order to provide additional services for its 400 mid-to-large lifestyle creators.

"I definitely don't want any of our creators to leave us just because they say, 'I want to go to another organization because you can't provide service X,'" said Jake Rosen, the founder of JRE.

Rosen indicates that he holds an optimistic attitude towards the group of mid-income creators who use the company's services.

"Many high-end brands don't want to risk their entire budget on just one super internet celebrity," he said. "On the other hand, there are indeed many people who have succeeded through micro or small creators. However, if an event requires hiring 100 creators, it becomes a heavy burden for both the brand and the agency."

Private equity is playing an increasingly significant role in the creator economy.

Private equity firms still play a minor role in providing funding for creator economy companies, but they are gradually increasing their presence.

Quartermast founder James Creech stated that this involvement was mainly reflected in supporting or establishing companies such as Fixated (funded by Eldridge Industries) and Wonderloom Media (supported by Content Partners), enabling them to become acquirers; he did not participate in the JRE transaction. This is similar to the strategy of H.I.G.

Creator economy companies traditionally do not meet the standards set by private equity for mature enterprises, nor do they often reach the scale required for such investments. Strategic buyers such as advertising holding companies or talent agencies are usually willing to pay a higher price for creator economy companies than what private equity would offer.

Rosen founded JRE in 2019, which has 25 employees. He said that when he initiated the sales process earlier this year, he decided to choose the private equity route because it would allow him to continue to actively participate in future mergers and acquisitions and the growth of JRE. He believes that the corporate buyers he has contacted expect him to adapt to their processes.

"Being able to sit at a desk and speak up for the future is very important to me," he said.

Creech It is expected that the role of private equity in the creator economy will develop along the path of H.I.G and Capital.

"Other private equity firms follow the same logic," he said, "Some growth-oriented equity investors are looking to acquire a core business and then invest additional capital to drive expansion. This reflects that the industry is still maturing continuously."

Data from Quartermast Advisors shows that 2026 remains the busiest period on record for this industry. As of now, there have been 118 transactions involving participants in the creator economy, compared to 93 throughout 2025.

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