HgCapital, the UK private equity house, has backed the £34m (€56m) management buy-out of Eagle Rock Entertainment, the music and film company, in HgCapital's first media deal since the launch of its media team at the beginning of the year.

HgCapital, formerly known as Mercury Private Equity, now owns a controlling interest in Eagle Rock, having bought it from edel, the German music group. The deal includes development capital for Eagle Rock and its management retain a significant stake.