Talent agencies are diversifying how they generate capital beyond client representation, and the race to create value has begun. Firms, including United Talent Agency (UTA) and WME-IMG, have formed strategic partnerships with investment banks, hoping to forge a valuable bond going forward. The deals come as agencies seek to rely less on the traditional 10 percent cuts they receive.

2017 is shaping up to be a defining year for some talent agencies, foreshadowing who could be at the top of the leaderboard over the next decade. In March, UTA agreed to buy a stake in New York investment bank AGM Partners. The strategic alliance between UTA and AGM allows the agency and its clients to receive financial guidance from AGM on deals. UTA will also use AGM for principal investing opportunities.

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