In a sign of support from the company’s financial backers, the leading independent VFX and animation studio group has announced a substantial investment to support ongoing operations and strategic expansion.
The Cinesite Group, one of the biggest independent visual effects and animation studios, has just announced it has secured a new, long-term funding package of US$215 million to support ongoing operations and strategic expansion.The move underscores the financiers’ financial commitment to the company's ambitions and confidence in the entertainment sector.
According to the accompany statement, the funding package should provide Cinesite the stability to “overcome challenges posed by recent industry disruption that has affected the entire sector.The industry will now be considering how best to work with its supply chain to identify, develop, test and validate solutions that deliver more sustainable and robust collaboration between vendors, studios, and filmmakers.Simultaneously, the Cinesite group will 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.” Recent closers of VFX and animation powerhouse Technicolor and Jellyfish Pictures underscore the industry’s volatility, coming on the heels of disruptive events including recent LA wildfires as well as the Hollywood strikes.
The Cinesite group notes 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.This commitment to talent, while impacting the company’s short-term financials, was crucial to maintaining quality and skilled expertise, allowing the company to continue servicing client projects without further disruption.” The financial package also means Cinesite is in a position to capitalize on the growing demand for high-quality entertainment content worldwide while considering “strategic acquisitions and partnerships to achieve its medium- and longer-term objectives.” In addition to launching an immersive division last year, the company invested in The Imaginarium Studios in 2023, purchased a majority stake in FX3X and acquired the Canadian studios Squeeze and L’Atelier Animation in 2022.According to Cinesite Group CEO Antony Hunt, “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.” 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.
“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,” said William Ford, Chief Investment Officer at family office Gryphion.“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.”
Dan Sarto is Publisher and Editor-in-Chief of Animation World Network.
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