As the entertainment industry rebounds from the pandemic, private equity investors are becoming more active. According to a study, investments in media and telecom reached new highs in the first half of 2021. These 13 private equity firms, ranging from Apollo to Zelnick, are betting billions on Hollywood.
The money in Hollywood and entertainment never stops flowing, and private equity investors are now playing a bigger role in showbiz than ever before as the sector recovers from epidemic shutdowns and production and deal-making pick up.
‘Theatricals were hit particularly hard, but there were several success stories and transformations throughout the epidemic, and some private equities are seeking to take advantage of the situation,’ said Bart Spiegel, PwC’s media and telecom deals head.
According to PwC data, private equity investment in the media and telecom sector reached new highs in the first half of 2021, accounting for more than 170 deals worth $54.8 billion so far in 2021.
Silver Lake unloaded its position in AMC Entertainment Holdings for $713 million in January, benefiting from a 10-fold spike in share prices fueled by Reddit and executing one of the biggest exits in recent memory.
Despite the perceived risks in the creative industries, industry experts told Insider they expect to see more private equity investment in talent-led shingles. Companies like Reese Witherspoon’s Hello Sunshine are seeking a buyer at a $1 billion valuation, according to the Wall Street Journal, and LeBron James’ SpringHill company is also considering a sale (for around $750 million, according to the Information).
“The pandemic hastened all of the trends that we were already seeing in the media and acted as an accelerant to digital distribution and its effects on content monetization,” said Vania Schlogel, founder of private equity firm Atwater Capital, which focuses on innovative media and entertainment companies. ‘However, technology has also ushered in new tendencies that we have yet to completely appreciate.’
Insider has developed a list of the top private equity firms that are following these trends and investing in Hollywood. This ranking is based on our findings, which included interviews with over 15 investors and industry insiders. We looked at the private equity firm’s success, the breadth of its entertainment and media investments, and the profile of the investments themselves.
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