Providence says AI fatigue is supporting live events demand

Providence Equity Partners sees AI fatigue live events demand as an indirect beneficiary of rapid advances in digital content creation, Karim Tabet, the firm’s senior managing director and head of Europe, told PE Hub. Tabet said artificial intelligence is creating openings in communications and education, while also increasing the premium investors place on in-person experiences.

Providence, which PE Hub said generally invests in North American and European companies with enterprise values below $1.5 billion, is assessing companies by how they are exposed to AI disruption. Tabet said dealmakers tend to sort businesses into groups: those that benefit from AI infrastructure and adoption, those with models relatively insulated from the technology, and those facing pressure from it.

Why is AI fatigue helping live events?

Tabet’s argument is that AI lowers the cost of producing and distributing digital media, which increases the relative scarcity of physical experiences. Live events, concerts, festivals and business-to-business gatherings can therefore become more valuable when audiences and corporate customers seek shared experiences that cannot be replicated online.

“The paradox of digitalization is that it makes physical scarcity even more important and more valuable,” Tabet told PE Hub. He said wider access to content has increased demand for “the real, premium thing” and described AI as an amplification of a trend that Providence has been investing behind for 15 years.

Providence has several recent examples in the field. In June, Providence and Searchlight Capital Partners agreed to sell Hyve, a global B2B events business, to Hellman & Friedman. In May, Searchlight agreed to invest in Providence-backed CloserStill Media, another B2B events company, taking co-control alongside Providence and giving Providence an opportunity to reinvest.

The firm has also invested in live entertainment companies including Ambassador Theatre Group and Superstruct Entertainment, a global operator of large-scale festivals and live music events. Tabet contrasted the relatively limited rise in streaming subscription prices over the past 15 years with the stronger increase in live event ticket prices.

What is happening in private equity exits?

Tabet also told PE Hub that the backlog of private equity assets waiting to be sold is starting to show signs of movement, although the market remains split between high-quality assets and other companies. He cited one recent Providence transaction that attracted three binding bids at a price the seller could execute, which he said was a situation the firm had not seen much in recent years.

For assets outside the top tier, Tabet said buyers remain cautious where there is a gap between sellers’ expectations and buyers’ assessment of risk. He added that pressure from limited partners and general partners’ need to raise new funds are pushing some sellers to become more realistic on assets they need to sell.

Why are sports assets in focus?

Investor interest in live experiences also extends into sports. Shahid Bosan, managing director at Apollo Global Management, told PE Hub that the recovery from covid restrictions showed the value of in-person interaction, particularly in B2B events.

In cricket, the Indian Premier League’s business value has climbed to $20.6 billion, according to a Houlihan Lokey valuation report. Harsh Talikoti, director of corporate valuation advisory at Houlihan Lokey, said in the report that the IPL combines predictable cash flows with cost discipline, citing long-term media rights contracts, upfront sponsorship revenues, a hard salary cap and a capital-light model without stadium debt.

CVC has already been active in the IPL. The firm won the right in 2021 to own and operate a new franchise in Ahmedabad in Gujarat province, built the Gujarat Titans, and in 2025 agreed to sell a majority stake in the team to Torrent Group. Talikoti said inquiries from US and European private equity investors have increased since CVC’s transaction, while Houlihan Lokey said the league trails only the NFL on a per-match basis.

This story draws on original reporting from PE Hub.