UK-based visual effects and features animation studio Cinesite has secured US$112 million in investments from Gryphion Capital Investments, Barclays and NatWest. The financing will contribute to new partnerships with studios and filmmakers, as well as bolstering Cinesite’s ability to win market share.
Barclays and NatWest will provide Cinesite with up to US$52 million for general funding and revolving credit, while a further US$20 million will be dedicated to deal with acquisitions or expansion. Gryphion Capital Investments took a minority equity position in the studio as part of the deal. Cinesite CEO Antony Hunt and the company’s senior team will continue to lead the business from its London headquarters.
Focusing on the mid-size market and partnerships with streamers like Netflix and Disney+ has contributed to the company’s ongoing growth, even as many indie studios struggle to break through the blockbusters dominating the box office (Disney commanded nearly 40% of the domestic market share in the first half of 2019, for example, according to Box Office Mojo).
A recent report from Dublin-based analyst Research and Markets found that most animation industry segments worldwide are growing by 2%, year-over-year. The streaming market for this content, meanwhile, is increasing at an 8% annual rate.
Cinesite worked on the 3QU Media-produced Gnome Alone, which was distributed as a Netflix Original in 2018. Upcoming projects like Riverdance (working title, pictured) are focused on smaller and more specific demographics—fans of live musicals, for example—that could be targeted by streaming platforms’ algorithms.