A24 has received an equity investment of $225 million to fuel a strategic growth plan, and the distributor plans to use the capital to invest in and expand its production and distribution of global, original stories, as well as develop projects beyond the screen.
The lead investor for the round is Stripes, and the company’s founder Ken Fox will now join A24’s board. Neuberger Berman, on behalf of client funds, co-led a group of investors in the round.
Collectively, this investment group will hold less than 10% of the company. This is the first equity raise for A24 since an initial seed funding by Eldridge, which remains a minority stakeholder. As of the closing of this transaction, A24’s founders and employees will maintain a significant majority of A24’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.”
“A24 is a world-class brand and an extraordinary business,” Fox said. “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.”
“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,” Raman Gambhir, portfolio manager with Neuberger Berman, added in a statement.
A24 was founded in 2012 and began with just five people in a small office near the West Side Highway, but the company has been behind multiple indie hits and award darlings, including “Moonlight,” “Uncut Gems,” “Lady Bird” and HBO’s series “Euphoria,” just to name a few.
Upcoming releases for A24 include “The Sympathizer,” a limited series for Park Chan-Wook starring Robert Downey Jr., “Everything Everywhere All At Once” starring Michelle Yeoh, “Bodies Bodies Bodies” starring Amandla Stenberg, Maria Bakalova and Pete Davidson, Alex Garland’s “Men,” “The Idol” with The Weeknd, Ari Aster’s “Disappointment Blvd.” starring Joaquin Phoenix, “Beef” starring Steven Yeun and Ali Wong, “Past Lives” from debut director Celine Song and a documentary “Underrated” with Steph Curry.
Goldman Sachs & Co. LLC advised on the transaction alongside Latham & Watkins LLP.