For the last few years, Ben Silverman and Howard T. Owens have built production-management firm Propagate Content without major private equity financing that fueled the biggest Hollywood agencies over the past decade. That’s now changing.
The Los Angeles-based company (Est. 2015), behind Apple TV’s Owen Wilson starrer Stick as well as reality series The Secret Lives of Mormon Wives on Hulu, launched with early backing from the likes of A+E Networks then landed outside financing from merchant bank Raine Group in 2018. Seven years later, Silverman and Co. have now secured a private equity infusion of $50 million from Michael Arougheti-led investment manager Ares Management Corporation.
That funding unveiled Wednesday appears to be funneling in to Propagate’s increasing bet on growing in the creator economy representation space in addition to its traditional film and TV client roster, which includes Wicked director Jon M. Chu and Anora actress Mikey Madison. There’s a major race among Big 3 talent agencies CAA, WME and UTA along with management firm upstarts like Range to cultivate a large base of influencer and creator clients given the rush of advertising dollars away from traditional media and in to the digital branded content space.
“We are thrilled to partner with Ares. They bring us incredible financial acuity as well as access to growth capital that will fuel the continued expansion of our independent, next-generation studio,” stated Silverman. “Every dollar will go directly into accelerating our organic growth, pursuing strategic opportunities, and evaluating larger-scale acquisitions.”
Silverman, a producer behind The Office who had a run leading NBC’s television division, partnered with Owens to grow a portfolio of brands that includes Peter Principato’s management and production firm Artists First and Authentic Talent & Literary Management as well as producers Electus.
Last May, Propagate, which counts 225-plus staffers, expanded with an eight-figure deal to buy Lindsay Nead’s Parker Management, which focuses on wellness creators. And this month the company acquired digital talent management firm Estate Five Media, founded by Lynsey Eaton, Suzanne Droese, and Tina Chen Craig, to fold in to Parker Management.
On the production side, Propagate also backs the Chopped franchise on the Food Network, Best Medicine on Fox and recently bowed the buzzy I’m Chevy Chase and You’re Not documentary on CNN, among other projects in development including Sam Bankman-Fried and Jerry West docs.
“Propagate has established itself as a dynamic force in entertainment by building a leading digitally diversified talent representation business while consistently delivering premium content across multiple platforms,” said Ares executive Jim Miller. “Ben, Howard, and their team have created a differentiated company positioned at the intersection of traditional media and the creator economy. We’re excited to support their ambitious growth plans and help them capitalize on the significant opportunities ahead.”
The deal was led on the Propagate side by president and COO Drew Buckley and CFO Noah Nusinow, with legal firms Skadden Arps and Proskauer Rose LLP representing Ares.