A24, the Oscar-winning indie studio behind such movies as Moonlight and Minari, has secured a $225 million equity investment to fund its strategic growth plan.
It’s the first time A24 has received an injection of funds since its founding in 2012. The studio received its initial seed funding from Eldridge, which remains a minority stakeholder.
A24 said Wednesday it plans to use the capital to expand production and distribution worldwide and develop high-quality initiatives beyond the screen.
Stripes serves as the lead investor for the round, and Stripes’ founder, Ken Fox, will join A24’s board. Neuberger Berman, on behalf of client funds, co-led a group of investors in the round. Collectively, these investors will hold less than 10% of the company. As of the transaction’s closing, A24’s founders and employees will maintain a significant majority of the studio’s equity.
“We are grateful to have such an incredible group of new partners on board and look forward to learning from their varied areas of expertise as we begin this phase of growth,” A24 said in a statement. “This investment is an affirmation of our model and allows us to continue our expansion, building on the platform we’ve established as we move towards the next chapter of A24.”
Said Fox: “A24 is a world-class brand and an extraordinary business. We’ve built a relationship with the A24 team over many years and have been amazed by the breadth and impact of their iconic storytelling globally. A24 is synonymous with incredible content, and it is a prime example of Stripes’ belief in partnering with founders who are building amazing products. We are thrilled to work with A24 in their next phase of growth.”
Said Raman Gambhir, portfolio manager at Neuberger Berman: “A24 has established an unparalleled culture – one that puts their creators first. The authenticity of their brand provides all A24 stakeholders with a long runway for success. It’s truly a privilege to partner with this remarkable management team as they execute on their long-term strategic vision.”
Goldman Sachs & Co. LLC advised on the transaction alongside Latham & Watkins LLP.
A24 is behind such notable hits as HBO’s Emmy-winning Euphoria and specialty movies including Hereditary, Uncut Gems and Lady Bird among others.
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