Providence Equity Partners is mulling another minority stake sale in ATG Entertainment, which operates stage venues in the West End and on Broadway, according to five sources familiar with the situation.

Qatar Investment Authority (QIA) is considering acquiring this stake, three of the sources said, with one of them adding that there is a broad group of institutional investors looking at the asset.

The company was previously known as The Ambassador Theatre Group, but has announced a rebranding to ATG Entertainment, as per several media reports today (15 April).

Providence, which acquired a majority stake in ATG in 2013, is expected to retain a majority holding following the stake sale, one of the sources said.

The private equity firm sold a small minority stake in ATG to Australian live ticketing and entertainment business TEG in September 2020, to help the company navigate a downturn in demand for live entertainment throughout the COVID-19 pandemic.

ATG, which operates 64 venues in the UK, the US, and Germany, generated revenues of GBP 705m (more than double the GBP 321m amassed the previous year) and a record operating profit of GBP 120.5m in the financial year ending 25 March 2023, according to a Companies House filing made by parent company International Entertainment Holdings.

In February 2023, ATG agreed to merge with Jujamcyn Theaters, a Broadway theatre owner and producer in New York. Financial terms were not disclosed.

Private credit fund HPS Investment channelled a GBP 1.1bn private-credit facility to the company for refinancing purposes, also in February 2023, as per a newswire report.

Providence had weighed a full sale of ATG in 2020 via Goldman Sachs and Jefferies, based off an EBITDA of around GBP 70m, as previously reported. However, the process coincided with the onset of COVID-19 and was replaced by the minority stake sale to TEG.

ATG’s venues host live performances that entertain 18m audience members every year, according to its website. Long-running shows include Disney’s The Lion King, Wicked, and Moulin Rouge, to name but a few.

The company also provides ticketing services and is responsible for theatre productions. It is headquartered in London and Woking, with additional offices in New York and Cologne.

Providence and ATG Entertainment declined to comment. QIA and TEG did not respond to requests for comments.