A muted few years due to the pandemic and strikes have not dampened the outlook for media and entertainment investors

  • Content Partners, a Los Angeles-based private equity manager with AUM of $1.0bn, has launched a new credit investing division, Content Partners Capital, headed by Alphonse Lordo.

  • Content Partners is an independent owner of studio-distributed films and television shows, with owned titles including 13 Going on 30, Black Hawk Down, Hugo, xXx, as well as the CSI television franchise.

  • The new division will target IP-heavy business models across film, television, and music, investing under various credit structures. It has already completed its first deal, providing debt finance to Media Capital Technologies for its film slate transaction with entertainment company Lionsgate.

  • Before joining Content Partners, Alphonse Lordo was a Managing Director at Truist Securities and the Sector Head for Entertainment.

August 30, 2024 (Preqin News) – The entertainment & media industry is expected to grow to $3.4tn by 2028, professional services firm PwC reports in its Global Entertainment & Media Outlook 2024–2028. Over 2023, global revenue rose 5% to $2.8tn, which is forecast to continue at 3.9% CAGR through 2028.

Generative AI (GenAI) will mean huge changes for the industry. Although in many industries the focus for GenAI is on reducing costs, within entertainment and media it is expected to drive new revenue streams.

There have been 291 private equity deals in television and film since the start of 2019, and 28 in private debt, according to Preqin Pro. The transactions market has remained active despite the COVID-19 pandemic and the Hollywood strikes in 2023.

The largest recent deal is the $8.0bn announced buyout of Paramount Global in June this year. Skydance Productions (a portfolio company of KKR), Tencent Investment, CJ ENM, and RedBird Capital Partners have agreed to acquire a 50% stake in Paramount Global for $8.0bn.

The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.