PRIVATE EQUITY OWNED
Cirque du Soleil
Includes Cirque
live performance · Montreal, QC
- PE Firm
- Catalyst Capital Group
- Year Acquired
- 2015
PE demanded aggressive growth. Cirque lost $120 million on failed shows, then COVID snapped the trapeze.
The PE Playbook
- TPG Capital bought Cirque for $1.5 billion in 2015, loading it with $900 million in debt and ordering breakneck expansion
- Lost $30 million in China, $20 million on 'NFL Experience' in Times Square, and $70 million on Las Vegas show R.U.N.
- Laid off 4,679 employees (95% of workforce) in March 2020 when revenue went from $1 billion/year to zero in one week
- Filed for bankruptcy in June 2020; financial analysts had already warned that the 'debt-funded expansion strategy could be unsustainable'
Since the Acquisition
- Show quality became inconsistent as the company spread its creative talent across 33 simultaneous productions — veteran performers said the culture shifted from artistry to assembly line
- The $70 million Las Vegas show R.U.N. lasted only five months — the shortest-lived Cirque production in 27 years
- Company insiders said the culture shifted 'from close cooperation to let's build it quickly, let's prime the pump'
- Ticket holders for dozens of shows worldwide were left in limbo when every production went dark in March 2020 and the company filed for bankruptcy that June