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

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 20^th 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.