A private equity giant just snapped up a creator company, and it points to the next phase of investment in the sector

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A private equity giant just snapped up a creator company, and it points to the next phase of investment in the sector

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Eric Tencer, managing director at H.I.G. Growth, and Jake Rosen, originator of Jake Rosen Entertainment

Eric Tencer, managing director at H.I.G. Growth, and Jake Rosen, originator of Jake Rosen Entertainment, are hunting for creator-economy deals. H.I.G. Growth

The creator economics is catching personal equity's eye.

H.I.G. Capital, an funding elephantine alongside $76 milliard in chief under management, has cast a phase called Waveborn to get creator-economy companies, starting alongside the administration resolute Jake Rosen Entertainment. The attempt comes via H.I.G. Small-Cap & Growth, an arm of H.I.G. Capital. Terms for JRE weren't disclosed.

The scheme is to build on JRE by acquiring another companies that extend the center parts of the creator-economy ecosystem: brand relationships, satisfied production, and creator monetization.

The companies didn't provision particulars on the war chest, but cited Whalar Group as the category and measure of business they sought to build. Whalar spanned an agency, endowment management, and influencer-tech companies and was appreciated at $400 myriad in 2025 before marketing its agency to Accenture Song before this year.

The creator economics has seen bomb growth. Ad spending in the category has grown four times as accelerated as media general and is set to hit $44 milliard this twelvemonth in the US, according to the Interactive Advertising Bureau.

H.I.G. Capital's entrance into the field reflects financial giants' expanding acknowledgment of the creator economy's potential. It additionally shows how financial buyers are taking a roll-up method to energy the industry's expansion, fairly than waiting for it to attain scale.

Eric Tencer, managing director of H.I.G. Growth, stated factors akin the IAB stats, alongside alongside his individual experience, forged his condemnation in the space.

"I've got a 10th grader and a 7th grader at home, and I've been fighting a losing battle around, 'Why don't you fair observe normal TV or movies,' and they go direct to TikTok and Instagram," he said.

H.I.G. Capital's perspective is that the ecosystem of businesses serving brands and creators is fragmented, during creators are construction increasingly complex companies that necessitate additional expertise. Tencer stated H.I.G. Capital chose a endowment administration agency for its archetypal acquisition since it believed that putting creators at the center would assistance it decide its growth highway map. Its scheme is to get additional companies to complement or bolt on to JRE, assisting it recommendation additional services to its roster of 400 mid-tier to macro manner creators.

"I never desire one of our creators to depart us for a distinct agency since they say, 'I desire to go to them since you're not capable to recommendation X services,'" stated Jake Rosen, JRE's founder.

Rosen stated he's bullish on the middle-income creators his agency serves.

"A lot of brands on the elevated flank do not desire to hazard their complete prosperity on one mega creator," he said. "On the another end, yes, a lot of group are seeing achievement alongside micro, smaller creators, but it's a lot on the brand and agency to have 100 creators on a campaign."

Private equity is getting additional energetic in the creator economy

Private equity firms are playing a small but expanding function in backing creator economics companies.

That's happening chiefly by assistance or environment up firms akin Fixated (funded by Eldridge Industries) and Wonderloom Media (backed by Content Partners) that rotate into acquirers, stated James Creech, originator of the advisory resolute Quartermast, which wasn't engaged in the JRE deal. That's akin to H.I.G.'s strategy.

Creator economics companies haven't traditionally fit personal equity's criteria for mature companies ample adequate to encounter its funding requirements. Strategic buyers — specified as ad holding companies or endowment agencies — are frequently consenting to pay additional for creator economics companies than PE firms are.

Rosen, who founded 25-employee JRE in 2019, stated that whenever he started a revenue procedure before this year, he decided that going the PE path would authorize him to be actively engaged in forthcoming M&A and JRE's growth. He felt that the company buyers he said alongside wanted him to modify to their processes.

"Having a place at the table, and to be capable to have that sound for the future, was item that was really crucial to me," he said.

Creech predicted personal equity's function in the creator economics would prosecute H.I.G. Capital's lead.

"Other personal equities have the identical thesis," he said. "There are growth equity players who desire to buy a center business, put in additional chief to energy expansion. It reflects the continued growth of the space."

2026 continues to be the busiest duration on document for the sector, alongside 118 deals involving creator-economy players so far, compared to 93 in all of 2025, according to Quartermast Advisors.

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Lucia Moses covers the media and amusement business, alongside a concentration on how creators build businesses, how media companies intersect alongside creators, and how marketers clasp amusement tools. She's damaged stories concerning MrBeast's ambitions, Google's movie initiative, and Netflix's shove into podcasts.She earlier reported on media and managed teams at Digiday and Adweek.

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