ZMC makes 6x return on $700 mln exit of Cast & Crew

  • Silver Lake paying $700 mln for Cast & Crew
  • ZMC bought payroll company in 2012
  • VSS held minority stake in the company

ZMC, formerly Zelnick Media and ZM Capital, purchased Cast & Crew from Abry Partners in late 2012, with capital from its $150 million Fund I, which closed in 2008.

ZMC led a consortium that included Veronis Suhler Stevenson, Emigrant Capital Corp and other ZMC limited partners and affiliates.

Cast & Crew chose ZMC partly because of the firm’s understanding of the Burbank, California-based company’s customers, which include major and independent film and television studios, as well as live event venues, according to a source.

Cast & Crew provides technology-enabled payroll, production accounting and related services.

Silver Lake announced on June 29 that it would acquire Cast & Crew, but it did not disclose the purchase price. Bloomberg, citing an anonymous source, pegged the price at $700 million, including debt.

Under Silver Lake, Cast & Crew’s senior management will remain in their current roles and continue as equity partners in the new ownership structure, according to a statement.

Spokespeople for ZMC and Silver Lake declined to comment.

VSS said its VSS Structured Capital II sold its minority investment in Cast & Crew, according to an August 12 posting on its website.

Led by former 20th Century Fox president and BMG Entertainment chief Strauss Zelnick, ZMC is poised to close its second flagship fund on $400 million, two sources told Buyouts earlier this month.

The New York-based firm has been fundraising for ZM Capital Fund II for at least two years with a $400 million target, according to previous reports and SEC filings. Among LPs in the fund, The San Antonio Fire & Police Pension Fund committed $15 million to the fund last year.