BlackRock’s HPS and Brookfield’s Oaktree seize control of Hollywood production firm, erase $900M in debt

Two of the biggest names in private credit just became Hollywood landlords. BlackRock’s HPS Investment Partners and Brookfield’s Oaktree Capital Management, acting as part of a creditor group, have seized control of MBS Group, a major provider of production equipment and studio infrastructure to the entertainment industry, through a debt-for-equity restructuring that wiped out up to $900 million in debt. The takeover also includes a fresh $40 million injection meant to stabilize MBS and position it for growth. Former owners Hackman Capital Partners and Affinius Capital have been ousted from their positions entirely. From creditors to owners MBS Group services clients across more than 600 sound stages globally, including well-known facilities like Silvercup Studios and Television City. Hackman Capital had acquired MBS for $650 million from Carlyle back in 2019, riding what seemed like an unstoppable wave of content spending fueled by the streaming wars. That wave crashed. Production spending began contracting in 2022 as major studios pulled back from the spend-at-all-costs approach that had defined the streaming boom’s peak years. For HPS, this deal arrives during a period of rapid ...