Private equity investment in movies, entertainment on track for 5-year low

The value of global private equity deals in movies and entertainment companies is on its way to hitting its lowest annual level since at least 2019.

Through Aug. 8, private equity and venture capital firms have announced $1.48 billion of investments in the movies and entertainment sector worldwide this year, according to S&P Global Market Intelligence data. That is well off the pace to match the $10.27 billion total invested in 2022.

The number of deals made over the course of that year-to-date period totaled 73, compared to 183 for full year 2022.

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The sector pulled in $1.02 billion across 28 deals in the second quarter, a 161.5% sequential increase from the first quarter. But the aggregate transaction value in the second quarter was down 83.8% from the same period last year, when 46 deals worth a combined $6.31 billion were recorded.

The US and Canada have seen the most transactions so far this year, with 29 deals totaling $671.8 million in value. They were followed by the Asia-Pacific region with 26 transactions totaling $253.5 million.

Top transactions

In the largest private equity investment in the sector year to date, Splack Participações SA agreed to acquire a 90% interest in Coritiba Foot Ball Club em Recuperação Judicial for $265.2 million.

Otro Capital Management LLC, RedBird Capital Partners LLC and Maximum Effort Marketing LLC's investment in a $218.2 million funding round for Alpine Racing Ltd., which operates a motorsport team, marked the second-largest deal thus far in 2023.