What's Happening?
The Together Fund, a Paris-based equity fund, has made its first investment by supporting a management buyout of Belgium's largest production house, Caviar. This move follows Telenet's decision to sell
its 70% stake in Caviar to focus on its core telecom business. The Together Fund, launched with a capitalization of 58 million euros, aims to bolster European independent film and TV production companies against the growing dominance of larger audiovisual groups. The fund, co-managed by Alexandra Lebret and Antoine Bodet, has taken a 45% stake in Caviar, with the management team holding a 55% majority. Caviar, known for films like 'Sound Of Metal', is set to continue its growth strategy with this new partnership.
Why It's Important?
This investment is significant as it highlights the increasing need for private equity in Europe's independent film and TV sectors. By supporting Caviar, the Together Fund is helping to maintain the company's independence and growth trajectory, which could encourage more private investments in the industry. This move is crucial for European production companies to compete with larger, integrated audiovisual groups. The fund's backing by the European Investment Fund adds credibility and could pave the way for similar initiatives, potentially transforming the landscape of European film and TV production.
What's Next?
The Together Fund plans to announce additional investments in the spring, targeting diverse companies across Europe. This strategy aims to reflect the diversity of Europe's film and TV scene. Caviar, under its new ownership structure, is expected to continue its expansion, with plans to double its revenue through in-house growth and mergers and acquisitions. The fund's involvement is set for a duration of 10 years, with an exit strategy within three to seven years, indicating a long-term commitment to fostering growth in the sector.
