Project Description
Fund V: Investment Case Study
Quixote Studios
Quixote Studios
Quixote is a diversified and fully-integrated provider of Film/TV/Commercial production studios, equipment, transportation and related services of luxury rental trailers to the Film/TV and entertainment industry.
Investment Highlights
Investment Highlights
$28.0MM
Million
Bison Convertible Preferred Investment (excludes $7.0MM purchased by co-investor)
29.3%
Equity
Bison Equity Ownership (as-converted)
20.7%
GROWTH
Growth / Value Creation
About Quixote Studios
Quixote is a leading provider of studios, transportation, and equipment rentals to the Film/TV entertainment production industry. The Company is headquartered in Los Angeles, CA. Quixote’s broad offerings, including film studios, transportation, and varied equipment rentals allow it to meet the diverse needs of media producers and create packages at competitive rates. Quixote is diversified across four major entertainment production venues, including Los Angeles, New York, Atlanta, and New Orleans. Website: quixote.com
Partnership with Management
• Founder/CEO and Management/Board collectively owns 57.0% of the business – creating a strong alignment of interest
• Bison worked with the company to strategically add a CFO with extensive M&A experience and an SVP of Strategy and Operations to enhance business development, operating metrics and optimize asset utilization
Accretive Use of Proceeds
• Bison proceeds were used to provide partial shareholders liquidity
• Company scaled-down lower-margin on-location grip & lighting rentals business to refocus on studio business
• Completed development of a new Q-GO Studio at maximum utilization in addition to the current four studio complexes across Los Angeles and New Orleans production hubs to spur immediate growth
• Five additional studio leases under contract and development slated to open in 2021 and 2022 – projected to contribute incremental run-rate $25.0MM revenue and $12.0MM EBITDA once fully ramped with a build cost of ~$17.5MM
Exit
• Executing growth plan to achieve $50.0MM EBITDA in 4-5 years but will consider earlier exit in 2022 if forecast is achieved
Overview
Industry: Entertainment Production Services
Invested: 2018
Status: Active
Company Details
Website: https://quixote.com/
Exit
• Executing growth plan to achieve $50.0MM EBITDA in 4-5 years but will consider earlier exit in 2022 if forecast is achieved
Bison Team
Partnering with Quixote
“We are extremely excited to partner with the Quixote team. We are very impressed with their commitment to excellent service and their culture of partnership with their customers and vendors and believe they are really well-positioned to benefit from the significant growth in the industry”
– Bison Capital Partner Pete Macdonald
