Indie Production House A24 Scores $225m Equity Investment
Film2 Minutes Read

Indie Production House A24 Scores $225m Equity Investment

March 17, 2022 Share

The funds have been allocated for an expansion of its production and distribution operations.

A24 is the production company behind several Oscar-winning movies in recent years, and it has just secured a $225 million equity investment to fund its strategic growth plan.

Films like Moonlight, Amy, Ex Machina and Room were all distributed by A24 and went on to win Academy Awards. The indie outfit has garnered a reputation for unique and unusual storytelling with intriguing character developments that have become unmistakably recognizable as their brand.

The company has an adoring fanbase, largely due to the critical acclaim of movies like Lady Bird, Midsommar, Hereditary, Uncut Gems, Spring Breakers and many more.

Moonlight – Credit: A24

Investment firm Stripes serves as the lead investor, holding less than 10 per cent of the company and taking A24’s valuation above $2.5 billion. Stripes’ founder Ken Fox will also be a new addition to the board. Neuberger Berman, on behalf of client funds, co-led a group of investors in the round.

As reported by Variety, this is the first equity raise for the production house since an initial seed funding by Eldridge, an investment company that has stakes in Rolling Stone, Billboard and Waldorf Astoria. After this investment, Eldridge will remain a minority stakeholder in the company.

Rumours had been circulating that A24 was attracting big interest from investment companies who are looking for content company opportunities, with Reese Witherspoon’s Hello Sunshine, Will Smith and Jada Pinkett Smith’s Westbrook and children’s TV company Moonbug Entertainment also landing massive sales or investments.

Ex-Machina – Credit: A24

“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.”

Meanwhile, Stripes’ Ken Fox said: “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.”

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