Private credit investors HPS Investment Partners, which is part of BlackRock, and Oaktree Capital Management have seized control of MBS Group, a key supplier of production equipment to Hollywood studios. This debt-for-equity deal comes after MBS Group defaulted on its debt obligations. The restructuring includes an additional $40 million in funding from creditors to support MBS Group's operations and facilitate a return to growth, with HPS and Oaktree now among the controlling creditor group.
MBS Group provides lighting equipment and other production infrastructure to over 600 sound stages globally, including prominent locations like New York's Silvercup Studios and Los Angeles' Television City. The recent takeover ends the ownership of Hackman Capital Partners and Affinius Capital, who had acquired MBS from Carlyle for $650 million in 2019. The company had been under increasing financial pressure due to a significant reduction in production spending by major entertainment companies following the unwinding of the streaming boom, leading to cost reduction efforts and debt restructuring talks that began in 2025.
This development highlights the broader impact of Hollywood's prolonged slowdown, demonstrating that financial strain is not limited to studios but extends to the businesses supporting film and television production. It also underscores a growing trend where private credit lenders are increasingly becoming owners of companies when highly leveraged deals face financial difficulties.
