Novum places MMC Studios in continuation fund

The Frankfurt-based GP decided to hold on to the asset and support it with further add-on acquisitions as the studio thrives amid a wave of fresh orders and projects, the sources said.

The continuation fund, Novum Capital Medien Fund I, will also allow the sponsor to complete a wind-down of its 2017 vintage, EUR 75m Novum Capital Special Opportunities Fund I, the first source continued. The fund will specialize in media assets, the second source added.

DWS Private Equity is an anchor investor in the new fund, which has received additional backing from other institutional investors and current MMC investors and has a transaction volume exceeding EUR 120m, the first source continued.

Earlier this year, Novum appointed advisers at Stephens to explore a sale of the Cologne-based studio specialist, as reported. At the time, MMC was marketed off EUR 10m EBITDA for 2021 on the back of EUR 55m-57m sales, with EBITDA on track to reach EUR 15m this year amid the ongoing boom in content production.

MMC Studios attracted interest from sponsors and strategic bidders alike in its auction, with pan-European private equity firm Ardian tipped among firms bidding for the studios, as reported.

Novum acquired MMC Studios in 2019 from sponsors DUBAG Group and Unigestion. The company posted EUR 4m EBITDA at the time of that deal, according to Mergermarket.

Founded in 1991, MMC runs one of Europe's largest film and TV studio spaces and is a leading full-service provider for TV shows, series and feature films, according to Novum's website. Its premises, known as the "Coloneum", also host corporate events, trade shows, e-sports and gaming events.

Novum and MMC declined to comment. DWS did not respond to requests for comment.

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