A24 secures $225 million equity investment to expand production

Independent outfit A24 landed a $225 million equity investment, which will be used to expand the Moonlight and Euphoria production and distribution of equipment.

Stripes is the lead investor in the round, with the investment group owning less than 10% of the company, putting A24’s valuation above $2.5 billion. Stripes founder Ken Fox will join A24’s board of directors. Neuberger Berman, on behalf of client funds, co-led a group of investors in the round.

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This equity investment marks the first capital increase for the company since the initial seed financing by Eldridge, which remains a minority shareholder. A24 has long been at the center of sales speculation as entertainment companies continue to collect high prices. Kevin Mayer and Tom Staggs’ Candle Media acquired Reese Witherspoon’s Hello Sunshine ($900 million) and children’s content giant Moonbug ($3 billion) and invested in Will Smith’s Jada Pinkett-Smith and Westbrook Inc. . Elsewhere, Apollo Funds has taken a minority stake in Legendary Entertainment for $760 million.

“A24 is a world-class brand and an amazing company,” Fox said. “We have built a relationship with the A24 team for many years and have been amazed by the scale and impact of their iconic storytelling on a global scale. A24 is synonymous with amazing content and this is a great example “Stripes’ belief in partnering with founders who create amazing products. We’re excited to work with A24 in its next phase of growth.”

Raman Gambhir, Portfolio Manager at Neuberger Berman, added, “A24 has established an unprecedented culture, a culture that puts its creators first. The authenticity of their brand offers all A24 stakeholders a long path to success. It is truly a privilege to partner with this outstanding management team as they execute on their long-term strategic vision.

A24’s upcoming slate includes Everything everywhere all at oncewhich will open the SXSW film festival, and that of Alex Garland Men. Recently, the company tapped former BBC executives Rose Garnett and Piers Wenger to oversee its international film and TV slate.

Goldman Sachs & Co. advised the transaction alongside Latham & Watkins.

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