Connection Capital backs film set firm as it looks to invest £100m in 2022

The London-based private equity firm has up to £100m to invest in businesses in 2022, including £40m from its own-led direct private equity and private debt transactions.

Private equity firm Connection Capital has completed a £6.4m investment in the MBO of one of the UK’s leading TV and film set design businesses, Cardiff-based 4Wood TV and Film. The film set designer and builder is used by Netflix, Disney+, BBC, HBO and others.

Capacity in the South Wales studio market is expected to grow significantly in the next two years, as international production companies continue to invest in the region.

The UK market value for filmmaking and high-end TV was £5.6bn in 2021, up from £3.6bn in 2019.

The deal is part of up to £100m worth of investments the private equity platform is looking to make in 2022.

Connection Capital was founded in 2010 and is an active investor in the sub-institutional UK SME market. The platform provides growth capital, MBO funding and equity restructuring to established businesses.

For SMEs, it writes cheques of between £3m and £10m, with its “sweet spot” being between £5m and £8m.

“We very much work alongside the management teams we back,” managing partner Claire Madden says. “With the businesses we deal with, this is typically their first experience taking institutional capital and they are at an inflexion point – whether that’s a growth inflexion point or a transition of ownership – so we help them navigate that, which can be a rocky ride, particularly in the first year.

“We go into a partnership-type relationship because the choice of who backs that transaction is down to the management team. It’s not just down to price and deliverability but how you’re going to get on with each other in this journey for three to five years.”

Action is the foundational key to all success. Congratulations to 4Wood TV and Film on your funding and all the best. Also, Best of wishes to the entire team at Connection Capital, may you succeed in all your endeavours.

Shishir Gupta, Founder and CEO, StartupLanes

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