A24, the indie studio behind “Moonlight” and “Uncut Gems,” announced an equity investment of $225 million, which it says it will use to invest in and expand its production and distribution operations.

Stripes serves as the lead investor for the round and Stripes’ Founder, Ken Fox, will join A24’s board as part of the investment. Neuberger Berman, on behalf of client funds, co-led a group of investors in the round. Collectively, this investment group will hold less than 10% of the company, which values the company at $2.5 billion. This is the first equity raise for A24 since an initial seed funding by Eldridge, which remains a minority stakeholder in the company. There had been rumors that A24 was being shopped around as part of red-hot interest in content companies, one that’s seen the likes of Reese Witherspoon’s Hello Sunshine, Will Smith and Jada Pinkett Smith’s Westbrook and children’s TV company Moonbug Entertainment land massive sales or investments.

Though A24 has produced a number of Oscar winners and nominees such as “Moonlight,” “Lady Bird” and “Room,” as well as commercial hits like “Ex Machina” and “The Witch,” the studio is facing a dramatically altered landscape for indie films. Movies aimed at adults have struggled at the theatrical box office since COVID hit, and A24 has struggled to field films that appeal to audiences still skittish about the virus. Recent releases like “C’mon C’mon” and “Red Rocket” failed to draw crowds, but the company did earn Oscar nods for “The Tragedy of Macbeth,” which it released in partnership with Apple. A24 has also built up its television operations, producing the likes of “Euphoria” and “Moonbase 8.”

“A24 is a world-class brand and an extraordinary business,” said Fox. “We’ve built a relationship with the A24 team over many years and have been amazed by the breadth and impact of their iconic storytelling globally. A24 is synonymous with incredible content and it is a prime example of Stripes’ belief in partnering with founders who are building amazing products. We are thrilled to work with A24 in their next phase of growth.”

“A24 has established an unparalleled culture — one that puts their creators first. The authenticity of their brand provides all A24 stakeholders with a long runway for success. It’s truly a privilege to partner with this remarkable management team as they execute on their long-term strategic vision,” said Gambhir.

Goldman Sachs & Co. LLC advised on the transaction alongside Latham & Watkins LLP.