A24 secures $225m equity investment to fuel expansion of production, distribution

HBO drama series Euphoria

New York-based studio A24, the company behind HBO drama Euphoria and feature films including Moonlight and Uncut Gems, has secured a US$225m investment to fuel its strategic expansion.

The funding round, led by growth equity firm Stripes, marks the first time A24 has received an equity investment since it was founded in 2012. Stripes founder Ken Fox will join the board of A24.

The company said it will use the investment to expand production and distribution globally, in addition to developing initiatives beyond the screen.

Investment management firm Neuberger Berman, on behalf of client funds, co-led a group of investors in the round. Together, the investment group will hold less than 10% of the company, which would place the company’s total valuation at more than US$2.25bn. A24 said its “founders and employees will maintain a significant majority of A24’s equity” when the transaction closes.

Connecticut-headquartered holding company Eldridge, which invested in A24 when the company was founded, will remain a minority stakeholder in the company.

“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,” said A24.

“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.”

News of the investment comes a week after A24 sent shockwaves through the UK industry with the revelation it has hired BBC’s director of drama Piers Wenger and director of film Rose Garnett, with both set to leave the UK pubcaster in May. Ben Irving will assume the role of acting director of BBC Drama until a successor to Wenger is appointed, while Eva Yates is acting director of BBC Film until Garnett’s replacement is found.

On the TV front, upcoming projects from A24 include limited series Sympathizer, directed by Park Chan-Wook and starring Robert Downey Jr. The project is a coproduction between HBO, A24 and Rhombus Media in association with Cinetic Media and Moho Film. It is based on a Pulitzer Prize-winning novel by Viet Thanh Nguyen and follows the challenges of a half-French, half-Vietnamese communist spy during the final days of the Vietnam War and his resulting exile in the US.