2022 has definitely been an interesting year for the intrusion of private equity and capital investment firms into the wider entertainment landscape. With Hackman Capital Partners now investing in the global studio space in a big way, it’s an interesting landscape indeed. Blake & Wang P.A entertainment lawyer, Brandon Blake, takes a look at this boom.
$1.6B in Investment
Already a recognized name behind many of the iconic studio properties domestically, this week we saw them announce that their initial target of $1B in the HCP Studio Fund had been surpassed. The fund itself closed at $1.4B, with a further $200M in co-investment capital commitments factored into the wider space. Investing entities vary from private equity and global sovereign wealth funds to foundations, family offices, insurance companies, and even some corporate and public pensions. These are, of course, institutions well known for looking for solid niche asset classes to help grow wealth.
The Soundstage Spree
The demand for quality production space is certainly at a premium currently, with demand faroutstripping supply. Even as we’ve seen some streamers ratchet back production volume this year, there’s still significant need for ‘homes’ in key production hubs. Coupled with longer leases becoming the norm, it’s an interesting rise in demand.
As of Q2 this year, the fund is said to be about 50% allocated to investment, across 7 key projects. This still leaves it plenty of space for further investment potential. This also brings Hackman’s portfolio up to 18 studio properties, with 90 sound stages in development and 120 actively working. Most of these are in North America, Ireland, and the UK.
With the demand for solid and reliable shooting venues and soundstages still growing, it’s an interesting example of the widening globalization of the entertainment market, as well as the steep increase in demand for continuous content development in the entertainment industry.
Film and Television 