Getty Images, a leader in visual communications, announced it is raising $500 million from Koch Equity Development LLC (KED) ― which is the investment arm of Koch Industries. As part of the deal, KED is going to make a $500 million non-controlling preferred equity investment in Getty Images. Through the transaction, the Getty family is going to continue to retain control over Getty Images following the acquisition of controlling interest from the Carlyle Group earlier this year.
“In September we announced my family were resuming control of Getty Images – a business that bears our name and one that we fervently believe in,” said Getty Images co-founder and chairman of the board Mark Getty in a statement. “KED demonstrated they share a belief in Getty Images, a long-term outlook and focus on growth. We are extremely excited about this partnership and what it means for Getty Images.”
KED said it is not going to have any input into Getty Images content or editorial coverage. The investment company also pointed out that this policy is consistent with its 2017 financial investment in support of Meredith’s purchase of Time Inc.
Photo: Koch Equity Development office building / Credit: Koch Equity Development
And KED has now made more than $9 billion of principal investments into public, private, and family-owned businesses since 2012. KED’s investment in Getty Images is consistent with its approach to provide long-term capital to businesses while partnering with existing ownership and management.
“This transaction, like American Greetings, Meredith, Guardian and others preceding it, is another great example of KED supporting a family-controlled business with a unique, non-controlling equity investment,” added KED President Matt Flamini. “We are excited to partner with the Getty family for the long-term success of the company.”
