Cinesite secures US$215m investment

VFX and animation house Cinesite has announced a series of transactions which will result in a new long-term funding package of US$215 million to support its continued operations, technological innovation and strategic expansion.

The funding package makes it possible for Cinesite to overcome the challenges posed by recent industry disruption that has affected the entire sector.

NatWest Corporate Bank led the financing alongside the studio’s long-standing relationship banks Barclays and Santander. Its shareholders, including family office Gryphion, supported the overall package of senior and junior debt and equity lines.

The funding comes at a time where VFX giants The Mill and MPC have closed down following the collapse of parent company Technicolor, and VFX house Jellyfish has suspended operations.

During these diffiult times, the Cinesite group said it “retained as many of its highly skilled artists and technical talent as possible, ensuring its studio network was ready to seamlessly resume production as soon as the strikes concluded.” 

The Cinesite group will now continue to expand its production capabilities across animation, visual effects, immersive content and motion capture, while leveraging cutting-edge technologies and exploring the potential of generative AI.

The company says it will capitalise on the growing demand for high-quality entertainment content worldwide while considering strategic acquisitions and partnerships to achieve its medium- and longer-term objectives.

Cinesite Group CEO Antony Hunt, said: “We have served this industry for over 30 years and in that time we have seen many changes; our longevity comes in part from our ability to adapt. In the next phase of our business you can expect to see us taking advantage of opportunities thrown up by the disruption of the past couple of years. Thanks to the renewed commitment of our banks, shareholders and other stakeholders and the ongoing confidence our clients place in our services, we will continue to produce exceptional work for audiences, while fuelling innovation and studio growth.”

William Ford, chief investment officer at family office Gryphion, adds: “This funding package underscores the conviction of Cinesite’s shareholders and banks in the industry’s recovery and the continued demand for high-quality visual narratives. Cinesite’s strategic market position and growth potential, combined with its ability to consistently produce top-tier entertainment during unprecedented times, made renewing our support a straightforward choice. We are confident in Cinesite’s leadership and their ability to thrive as the broader industry restores its equilibrium.”