Global alternative asset manager The Carlyle Group has acquired a significant majority stake in The Foundry Visionmongers, a developer of visual effects software, from Advent Venture Partners and other stakeholders. Falcon Investment Advisors has converted its current ownership in The Foundry into mezzanine notes in support of the acquisition. The founders and management will continue to retain a significant minority stake. Equity for the investment will come from Carlyle Europe Technology Partners (CETP) II, a €530 million fund that closed in November 2008. Financial terms of the transaction were not disclosed.
Headquartered in London with offices in Los Angeles, The Foundry has around 100 employees and 2010 revenues of £14.9 million. The company has established itself as a technology partner to the major feature film studios and post production houses in the US and UK. The Foundry’s products have been used to make movies such as Avatar, Tron: Legacy, Alice in Wonderland, The King’s Speech, 127 Hours and Black Swan.
Carlyle will support The Foundry’s expansion and invest to develop their specialised product offerings. Furthermore, this investment will facilitate the company’s diversification into other adjacent market arenas as the product range continues to evolve and grow.
Arma Partners acted as financial advisors and Morrison & Foerster LLP acted as legal advisors to The Foundry. Carlyle was advised by Travers Smith LLP. The Foundry management were represented by Clark Holt.
UK, London
Fusion Corporate Partners 