Crescent completes PIK loan to Oscar-winning company

The loan to the film visual effects company The Foundry is the latest completed under Crescent’s European specialty lending strategy.

Los-Angeles headquartered Crescent Capital Group has provided a payment-in-kind (PIK) loan to Academy Award-winning special effects software group The Foundry.

The Foundry, a UK-based company, develops computer graphics through its post-production NUKE software, which has been used in high-profile television series and films such as Game of Thrones, Interstellar, Gravity and Ex Machina. Los Angeles-based Pixomondo used the NUKE software for the 2011 film Hugo and secured an Academy Award for best visual effects.

The company is sponsored by private equity firm HgCapital, which acquired a majority stake from The Carlyle Group in a £200 million transaction completed last year. Further details on the PIK loan transaction were not disclosed.

The transaction is part of Crescent’s European Speciality Lending Strategy, for which it held a final close last year after raising €500 million, according to PDI Research & Analytics. Notable investors include the University of Michigan, which committed £25 million. Crescent was advised by placement agent Asante Capital. The vehicle targets investments in the European mid-market.

Additionally, the firm is on track to hit its target of $3 billion for its Crescent Mezzanine Partners Fund VII after recently holding a second close on the fund. So far, it has raised $2.5 billion.

Christine Vanden Beukel, managing director and head of Crescent’s European Speciality Lending Strategy, said: “ We are very excited to be able to support HgCapital, a new sponsor relationship for Crescent, and The Foundry, by providing this financing which will assist in the continued growth of one of the premier software developers for creative industries.”

HgCapital declined to comment on the transaction.

Crescent Capital Group also has offices in Boston, London and New York, in addition to its Los Angeles headquarters. The firm has more than $20 billion of assets under management.