Private equity finds a new stage in Spain’s booming creative economy
The rise of private equity investment in Spain’s entertainment industry is reshaping what used to be a niche cultural field into a thriving financial opportunity. A recent Cinco Días report on Vancouver Media —the studio behind Money Heist, which has distributed more than €30 million in dividends over the past three years— underlines the scale of change. In this new landscape, Gala Capital stands out as a key player. Through its investments in SOM Produce and Secuoya Content Group, the firm has turned creativity, governance, and strategic capital into measurable, repeatable value.Private Equity Meets Creativity
For years, investing in entertainment was considered high-risk, subject to audience moods, creative volatility, and irregular cash flow. But the convergence of streaming platforms, global distribution, and professionalized production management has changed the equation. Today, Spain’s entertainment sector functions more like a mature industry: predictable income streams from licensing, rights, and long-term content partnerships. Gala Capital recognized this early, applying a disciplined private equity model to cultural businesses capable of scaling internationally.SOM Produce: Turning Live Entertainment into a Scalable Business
In 2019, Gala Capital took a €25 million minority stake in SOM Produce, Spain’s leading musical theatre producer. The company is behind stage hits such as Billy Elliot, Grease, and Matilda, and operates major Madrid venues like the Teatro Rialto and Teatro Alcalá. The investment supported SOM’s growth, operational efficiency, and international expansion. Five years later, ATG Entertainment, owned by Providence Equity Partners, acquired SOM Produce in a deal marking one of Spain’s most successful cultural private equity exits. Beka, Gala Capital’s affiliated investment arm, retained a 24.9% stake, preserving exposure to future upside. This transaction illustrated how investment in Spain’s entertainment industry can generate returns comparable to technology or infrastructure—when managed with rigor and long-term vision.Secuoya Content Group: Spain’s Audiovisual Powerhouse
In 2018, Gala Capital acquired a 14% stake in Secuoya Content Group, anticipating the growth of Spanish-language audiovisual production. Soon after, Netflix chose Secuoya as its local partner for the “Ciudad de la Tele” production hub near Madrid—a partnership that positioned Spain as a key center for global streaming content. Since then, Secuoya has surpassed €100 million in annual revenue and achieved €30 million in EBITDA, while preparing a potential stock-market listing to enhance liquidity and scale. Gala Capital has since increased its share to nearly 20%, reaffirming its commitment to long-term growth in the creative economy. By backing Secuoya, Gala Capital helped consolidate an industry that now bridges content creation, production finance, and intellectual property ownership—pillars of a new financial ecosystem in European media.The New Frontier of Cultural Private Equity
The case of Vancouver Media, highlighted by Cinco Días, shows that Spain’s creative industry is no longer a speculative field but a stable, cash-generating asset class. When structured with governance, scalability, and financial discipline, entertainment investments can deliver double-digit returns and real dividends. Gala Capital’s strategy, significant minority stakes, strong partnerships with management, and flexible exit planning, has proven that culture can be invested in responsibly, profitably, and sustainably. Spain’s entertainment sector is entering a period of maturity. Once viewed as unpredictable, it now offers the characteristics institutional investors seek: visibility of earnings, exportable content, and growing global demand for Spanish-language productions.By investing early in SOM Produce and Secuoya, Gala Capital has demonstrated that cultural private equity is more than philanthropy—it’s a model for generating alpha in creative industries.
In the right hands, culture becomes capital.
